Table of Contents
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UNITED STATES
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)
909 A Street, Tacoma Washington | 98402 | |
(Address of principal executive offices) | (Zip code) |
Gregory J. Lyons, Assistant Secretary
Russell Investment Funds
909 A Street
Tacoma, Washington 98402
253-439-2406
(Name and address of agent for service)
Registrant’s telephone number, including area code: 253-572-9500
Date of fiscal year end: December 31
Date of reporting period: January 1, 2008 – June 30, 2008
Table of Contents
Item 1. | Reports to Stockholders |
Table of Contents
2008 SEMIANNUAL REPORT
Russell Investment Funds
LifePoints® Variable Target Portfolio Series
JUNE 30, 2008
FUND
Moderate Strategy Fund
Balanced Strategy Fund
Growth Strategy Fund
Equity Growth Strategy Fund
Table of Contents
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.
Table of Contents
Russell Investment Funds
LifePoints® Funds
Variable Target Portfolio Series
Semiannual Report
June 30, 2008 (Unaudited)
Table of Contents
Russell Investment Funds - LifePoints® Funds Variable Target Portfolio Series
Copyright© Russell Investments 2008. All rights reserved.
Russell Investments is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.
Fund objectives, risks, charges and expenses should be carefully considered before investing. 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 Financial Services, Inc. (effective June 2, 2008, the name changed from Russell Fund Distributors, Inc.), member FINRA, part of Russell Investments.
Russell Investments and Standard & Poor’s Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly.
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.
Table of Contents
Russell Investment Funds
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value June 30, 2008 | $ | 953.80 | $ | 1,024.32 | ||
Expenses Paid During Period* | $ | 0.53 | $ | 0.55 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.11% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Moderate Strategy Fund | 3 |
Table of Contents
Russell Investment Funds
Moderate Strategy Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Shares | Market Value $ | ||||
Investments - 100.0% | |||||
Other Russell Investment Funds (“RIF”) and Russell Investment Company (“RIC”) Series Mutual Funds | |||||
Bonds - 60.4% | |||||
RIF Core Bond Fund | 1,175,102 | 11,786 | |||
Domestic Equities - 25.7% | |||||
RIF Aggressive Equity Fund | 49,675 | 578 | |||
RIF Multi-Style Equity Fund | 141,252 | 1,927 | |||
RIC Quantitative Equity Fund | 56,888 | 1,930 | |||
RIF Real Estate Securities Fund | 39,270 | 575 | |||
5,010 | |||||
International Equities - 13.9% | |||||
RIC Emerging Markets Fund | 18,858 | 387 | |||
RIC Global Equity Fund | 62,454 | 583 | |||
RIF Non-U.S. Fund | 150,880 | 1,749 | |||
2,719 | |||||
Total Investments - 100.0% | |||||
(identified cost $20,242) | 19,515 | ||||
Other Assets and Liabilities, Net - (0.0%) | (7 | ) | |||
Net Assets - 100.0% | 19,508 | ||||
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Categories | % of Net Assets | ||
Bonds | 60.4 | ||
Domestic Equities | 25.7 | ||
International Equities | 13.9 | ||
Total Investments | 100.0 | ||
Other Assets and Liabilities, Net | (— | )* | |
100.0 | |||
* | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
4 | Moderate Strategy Fund |
Table of Contents
Russell Investment Funds
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value June 30, 2008 | $ | 934.40 | $ | 1,024.47 | ||
Expenses Paid During Period* | $ | 0.38 | $ | 0.40 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.08% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Balanced Strategy Fund | 5 |
Table of Contents
Russell Investment Funds
Balanced Strategy Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Shares | Market Value $ | ||||
Investments - 100.0% | |||||
Other Russell Investment Funds (“RIF”) and Russell Investment Company (“RIC”) Series Mutual Funds | |||||
Bonds - 40.5% | |||||
RIF Core Bond Fund | 2,564,757 | 25,724 | |||
Domestic Equities - 38.6% | |||||
RIF Aggressive Equity Fund | 215,786 | 2,510 | |||
RIF Multi-Style Equity Fund | 689,772 | 9,409 | |||
RIC Quantitative Equity Fund | 277,871 | 9,425 | |||
RIF Real Estate Securities Fund | 213,520 | 3,128 | |||
24,472 | |||||
International Equities - 20.9% | |||||
RIC Emerging Markets Fund | 92,194 | 1,895 | |||
RIC Global Equity Fund | 271,229 | 2,530 | |||
RIF Non-U.S. Fund | 764,728 | 8,863 | |||
13,288 | |||||
Total Investments - 100.0% | |||||
(identified cost $68,141) | 63,484 | ||||
Other Assets and Liabilities, Net - (0.0%) | (7 | ) | |||
Net Assets - 100.0% | 63,477 | ||||
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Categories | % of Net Assets | ||
Bonds | 40.5 | ||
Domestic Equities | 38.6 | ||
International Equities | 20.9 | ||
Total Investments | 100.0 | ||
Other Assets and Liabilities, Net | (— | )* | |
100.0 | |||
* | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
6 | Balanced Strategy Fund |
Table of Contents
Russell Investment Funds
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value June 30, 2008 | $ | 914.20 | $ | 1,024.66 | ||
Expenses Paid During Period* | $ | 0.19 | $ | 0.20 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.04% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Growth Strategy Fund | 7 |
Table of Contents
Russell Investment Funds
Growth Strategy Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Shares | Market Value $ | ||||
Investments - 100.0% | |||||
Other Russell Investment Funds | |||||
Bonds - 20.4% | |||||
RIF Core Bond Fund | 831,763 | 8,343 | |||
Domestic Equities - 52.6% | |||||
RIF Aggressive Equity Fund | 209,240 | 2,433 | |||
RIF Multi-Style Equity Fund | 624,837 | 8,523 | |||
RIC Quantitative Equity Fund | 239,845 | 8,136 | |||
RIF Real Estate Securities Fund | 166,214 | 2,435 | |||
21,527 | |||||
International Equities - 27.0% | |||||
RIC Emerging Markets Fund | 79,641 | 1,636 | |||
RIC Global Equity Fund | 263,631 | 2,460 | |||
RIF Non-U.S. Fund | 602,599 | 6,984 | |||
11,080 | |||||
Total Investments - 100.0% | |||||
(identified cost $45,454) | 40,950 | ||||
Other Assets and Liabilities, Net - (0.0%) | (4 | ) | |||
Net Assets - 100.0% | 40,946 | ||||
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Categories | % of Net Assets | ||
Bonds | 20.4 | ||
Domestic Equities | 52.6 | ||
International Equities | 27.0 | ||
Total Investments | 100.0 | ||
Other Assets and Liabilities, Net | (— | )* | |
100.0 | |||
* | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
8 | Growth Strategy Fund |
Table of Contents
Russell Investment Funds
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value June 30, 2008 | $ | 895.20 | $ | 1,024.66 | ||
Expenses Paid During Period* | $ | 0.19 | $ | 0.20 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.04% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Equity Growth Strategy Fund | 9 |
Table of Contents
Russell Investment Funds
Equity Growth Strategy Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Shares | Market Value $ | ||||
Investments - 100.0% | |||||
Other Russell Investment Funds | |||||
Domestic Equities - 64.9% | |||||
RIF Aggressive Equity Fund | 96,542 | 1,123 | |||
RIF Multi-Style Equity Fund | 305,671 | 4,169 | |||
RIC Quantitative Equity Fund | 118,242 | 4,011 | |||
RIF Real Estate Securities Fund | 76,519 | 1,121 | |||
10,424 | |||||
International Equities - 35.1% | |||||
RIC Emerging Markets Fund | 39,142 | 804 | |||
RIC Global Equity Fund | 120,845 | 1,128 | |||
RIF Non-U.S. Fund | 320,211 | 3,711 | |||
5,643 | |||||
Total Investments - 100.0% | |||||
(identified cost $18,331) | 16,067 | ||||
Other Assets and Liabilities, Net - (0.0%) | (6 | ) | |||
Net Assets - 100.0% | 16,061 | ||||
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Categories | % of Net Assets | ||
Domestic Equities | 64.9 | ||
International Equities | 35.1 | ||
Total Investments | 100.0 | ||
Other Assets and Liabilities, Net | (— | )* | |
100.0 | |||
* | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
10 | Equity Growth Strategy Fund |
Table of Contents
Russell Investment Funds
LifePoints® Variable Target Portfolio Series
Statements of Assets and Liabilities — June 30, 2008 (Unaudited)
Amounts in thousands | Moderate Strategy Fund | Balanced Strategy Fund | Growth Strategy Fund | Equity Growth Strategy Fund | ||||||||||||
Assets | ||||||||||||||||
Investments, at identified cost | $ | 20,242 | $ | 68,141 | $ | 45,454 | $ | 18,331 | ||||||||
Investments, at market | 19,515 | 63,484 | 40,950 | 16,067 | ||||||||||||
Receivables: | ||||||||||||||||
Fund shares sold | 16 | 98 | 63 | 86 | ||||||||||||
From Transfer Agent | 11 | 17 | 17 | 12 | ||||||||||||
Total assets | 19,542 | 63,599 | 41,030 | 16,165 | ||||||||||||
Liabilities | ||||||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 17 | 98 | 63 | 85 | ||||||||||||
Accrued fees to affiliates | 1 | 3 | 2 | 1 | ||||||||||||
Other accrued expenses | 16 | 21 | 19 | 18 | ||||||||||||
Total liabilities | 34 | 122 | 84 | 104 | ||||||||||||
Net Assets | $ | 19,508 | $ | 63,477 | $ | 40,946 | $ | 16,061 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Undistributed (overdistributed) net investment income | $ | (5 | ) | $ | (8 | ) | $ | (3 | ) | $ | (1 | ) | ||||
Accumulated net realized gain (loss) | (337 | ) | (449 | ) | (152 | ) | (535 | ) | ||||||||
Unrealized appreciation (depreciation) on Investments | (727 | ) | (4,657 | ) | (4,504 | ) | (2,264 | ) | ||||||||
Shares of beneficial interest | 21 | 71 | 47 | 19 | ||||||||||||
Additional paid-in capital | 20,556 | 68,520 | 45,558 | 18,842 | ||||||||||||
Net Assets | $ | 19,508 | $ | 63,477 | $ | 40,946 | $ | 16,061 | ||||||||
Net Asset Value, offering and redemption price per share: | ||||||||||||||||
Net asset value per share* | $ | 9.34 | $ | 8.95 | $ | 8.67 | $ | 8.28 | ||||||||
Net assets | $ | 19,508,474 | $ | 63,477,167 | $ | 40,945,966 | $ | 16,061,061 | ||||||||
Shares outstanding ($.01 par value) | 2,089,540 | 7,091,365 | 4,721,120 | 1,940,573 | ||||||||||||
* Net asset value per share equals net assets divided by shares of beneficial interest outstanding. |
|
See accompanying notes which are an integral part of the financial statements.
Statements of Assets and Liabilities | 11 |
Table of Contents
Russell Investment Funds
LifePoints® Variable Target Portfolio Series
Statements of Operations — For the Period Ended June 30, 2008 (Unaudited)
Amounts in thousands | Moderate Strategy Fund | Balanced Strategy Fund | Growth Strategy Fund | Equity Growth Strategy Fund | ||||||||||||
Investment Income | ||||||||||||||||
Income distributions from Underlying Funds | $ | 168 | $ | 362 | $ | 165 | $ | 37 | ||||||||
Expenses | ||||||||||||||||
Advisory fees | 16 | 49 | 33 | 14 | ||||||||||||
Administrative fees | 4 | 12 | 8 | 4 | ||||||||||||
Custodian fees | 4 | 7 | 6 | 4 | ||||||||||||
Transfer agent fees | — | 1 | 1 | — | ||||||||||||
Professional fees | 15 | 16 | 16 | 15 | ||||||||||||
Trustees’ fees | — | 1 | — | — | ||||||||||||
Printing fees | 1 | 1 | — | 1 | ||||||||||||
Offering fees | 5 | 5 | 5 | 5 | ||||||||||||
Miscellaneous | — | 1 | — | — | ||||||||||||
Expenses before reductions | 45 | 93 | 69 | 43 | ||||||||||||
Expense reductions | (36 | ) | (73 | ) | (63 | ) | (40 | ) | ||||||||
Net expenses | 9 | 20 | 6 | 3 | ||||||||||||
Net investment income (loss) | 159 | 342 | 159 | 34 | ||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | (361 | ) | (578 | ) | (250 | ) | (543 | ) | ||||||||
Capital gain distributions from Underlying Funds | 56 | 148 | 119 | 58 | ||||||||||||
Net realized gain (loss) | (305 | ) | (430 | ) | (131 | ) | (485 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on Investments | (562 | ) | (3,176 | ) | (2,991 | ) | (1,079 | ) | ||||||||
Net realized and unrealized gain (loss) | (867 | ) | (3,606 | ) | (3,122 | ) | (1,564 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | $ | (708 | ) | $ | (3,264 | ) | $ | (2,963 | ) | $ | (1,530 | ) | ||||
See accompanying notes which are an integral part of the financial statements.
12 | Statements of Operations |
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Table of Contents
Russell Investment Funds
LifePoints® Variable Target Portfolio Series
Statements of Changes in Net Assets
Moderate Strategy Fund | ||||||||
Amounts in thousands | Period Ended | Period Ended 2007* | ||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 159 | $ | 194 | ||||
Net realized gain (loss) | (305 | ) | 142 | |||||
Net change in unrealized appreciation (depreciation) | (562 | ) | (165 | ) | ||||
Net increase (decrease) in net assets from operations | (708 | ) | 171 | |||||
Distributions | ||||||||
From net investment income | (164 | ) | (207 | ) | ||||
From net realized gain | (160 | ) | (2 | ) | ||||
Net decrease in net assets from distributions | (324 | ) | (209 | ) | ||||
Share Transactions | ||||||||
Net increase (decrease) in net assets from share transactions | 11,886 | 8,692 | ||||||
Total Net Increase (Decrease) in Net Assets | 10,854 | 8,654 | ||||||
Net Assets | ||||||||
Beginning of period | 8,654 | — | ||||||
End of period | $ | 19,508 | $ | 8,654 | ||||
Undistributed (overdistributed) net investment income included in net assets | $ | (5 | ) | $ | — |
* | For the period April 30, 2007 (commencement of operations) to December 31, 2007. |
See accompanying notes which are an integral part of the financial statements.
14 | Statements of Changes in Net Assets |
Table of Contents
Balanced Strategy Fund | Growth Strategy Fund | Equity Growth Strategy Fund | ||||||||||||||||||||
Period Ended | Period Ended 2007* | Period Ended | Period Ended 2007* | Period Ended | Period Ended 2007* | |||||||||||||||||
$ | 342 | $ | 889 | $ | 159 | $ | 638 | $ | 34 | $ | 347 | |||||||||||
(430 | ) | 1,114 | (131 | ) | 1,101 | (485 | ) | 709 | ||||||||||||||
(3,176 | ) | (1,481 | ) | (2,991 | ) | (1,513 | ) | (1,079 | ) | (1,185 | ) | |||||||||||
(3,264 | ) | 522 | (2,963 | ) | 226 | (1,530 | ) | (129 | ) | |||||||||||||
(350 | ) | (901 | ) | (162 | ) | (651 | ) | (35 | ) | (358 | ) | |||||||||||
(1,121 | ) | (2 | ) | (1,109 | ) | — | (748 | ) | — | |||||||||||||
(1,471 | ) | (903 | ) | (1,271 | ) | (651 | ) | (783 | ) | (358 | ) | |||||||||||
32,515 | 36,078 | 17,790 | 27,815 | 5,368 | 13,493 | |||||||||||||||||
27,780 | 35,697 | 13,556 | 27,390 | 3,055 | 13,006 | |||||||||||||||||
35,697 | — | 27,390 | — | 13,006 | — | |||||||||||||||||
$ | 63,477 | $ | 35,697 | $ | 40,946 | $ | 27,390 | $ | 16,061 | $ | 13,006 | |||||||||||
$ | (8 | ) | $ | — | $ | (3 | ) | $ | — | $ | (1 | ) | $ | — |
See accompanying notes which are an integral part of the financial statements.
Statements of Changes in Net Assets | 15 |
Table of Contents
Russell Investment Funds
LifePoints® Variable Target Portfolio Series
Financial Highlights — For the Periods Ended
For a Share Outstanding Throughout the Period.
$ Net Asset Value, Beginning of Period | $ Net Investment Income (Loss)(a)(b) | $ Net Realized and Unrealized Gain (Loss) | $ Total Income (Loss) from Operations | $ Distributions from Net Investment Income | $ Distributions from Net Realized Gain | ||||||||||||
Moderate Strategy Fund | |||||||||||||||||
June 30, 2008** | 9.99 | .10 | (.56 | ) | (.46 | ) | (.10 | ) | (.09 | ) | |||||||
December 31, 2007* | 10.00 | .46 | (.11 | ) | .35 | (.36 | ) | — | (g) | ||||||||
Balanced Strategy Fund | |||||||||||||||||
June 30, 2008** | 9.93 | .06 | (.70 | ) | (.64 | ) | (.07 | ) | (.27 | ) | |||||||
December 31, 2007* | 10.00 | .47 | (.20 | ) | .27 | (.34 | ) | — | (g) | ||||||||
Growth Strategy Fund | |||||||||||||||||
June 30, 2008** | 9.90 | .04 | (.88 | ) | (.84 | ) | (.05 | ) | (.34 | ) | |||||||
December 31, 2007* | 10.00 | .45 | (.24 | ) | .21 | (.31 | ) | — | |||||||||
Equity Growth Strategy Fund | |||||||||||||||||
June 30, 2008** | 9.83 | — | (g) | (1.02 | ) | (1.02 | ) | (.02 | ) | (.51 | ) | ||||||
December 31, 2007* | 10.00 | .50 | (.38 | ) | .12 | (.29 | ) | — |
See accompanying notes which are an integral part of the financial statements.
16 | Financial Highlights |
Table of Contents
$ Total Distributions | $ Net Asset Value, End of Period | % Total Return(c) | $ Net Assets, End of Period (000) | % Ratio of Expenses to Average Net Assets, Net(d)(e)(f) | % Ratio of Expenses to Average Net Assets, Gross(d)(e) | % Ratio of Net Investment Income to Average Net Assets(b)(c)(f) | % Portfolio Turnover Rate(c) | |||||||||
(.19 | ) | 9.34 | (4.62 | ) | 19,508 | .11 | .57 | 2.04 | 22 | |||||||
(.36 | ) | 9.99 | 3.54 | 8,654 | .11 | 2.01 | 5.37 | 24 | ||||||||
(.34 | ) | 8.95 | (6.56 | ) | 63,477 | .08 | .38 | 1.39 | 7 | |||||||
(.34 | ) | 9.93 | 2.73 | 35,697 | .08 | .74 | 5.37 | 11 | ||||||||
(.39 | ) | 8.67 | (8.58 | ) | 40,946 | .04 | .42 | .97 | 4 | |||||||
(.31 | ) | 9.90 | 2.13 | 27,390 | .04 | .84 | 5.05 | 3 | ||||||||
(.53 | ) | 8.28 | (10.48 | ) | 16,061 | .04 | .60 | .47 | 14 | |||||||
(.29 | ) | 9.83 | 1.25 | 13,006 | .04 | 1.36 | 5.59 | 6 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights | 17 |
Table of Contents
Russell Investment Funds
LifePoints® Variable Target Portfolio Series
Notes to Financial Highlights — June 30, 2008 (Unaudited)
* | For the period April 30, 2007 (commencement of operations) to December 31, 2007. |
** | For the period ended June 30, 2008 (unaudited). |
(a) | Average month-end 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 RIMCO and RFSC, respectively. |
(g) | Less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
18 | Notes to Financial Highlights |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements — June 30, 2008 (Unaudited)
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 to qualified insurance company separate accounts offering variable insurance products. The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under a master trust agreement dated July 11, 1996, as amended. The Investment Company’s master trust agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest.
RIMCo is the Funds’ adviser and Russell Fund Services Company (“RFSC”), a wholly-owned subsidiary of RIMCo, is the Funds’ administrator and transfer agent.
Each of the Funds listed in the table below allocates its assets by investing in a combination of Russell Investment Company (“RIC”) funds and other of the Investment Company’s funds (the “Underlying Funds”). RIMCo, the Funds’ and Underlying Funds’ investment adviser, may modify the target asset allocation for any Fund and/or the Underlying Funds in which the Funds invest. From time to time, each Fund may adjust its investments within the ranges below based on RIMCo’s outlook for the economy, financial markets generally and relative market valuation of the asset classes represented by each Underlying Fund. Additionally, each Fund may deviate from the ranges below when, in RIMCo’s opinion, it is necessary to do so to pursue the Fund’s investment objective. In the future, the Funds may also invest in other funds which are not currently Underlying Funds.
Asset Allocation Targets as set forth in current prospectus | ||||||||||||
Asset Class/Underlying Funds | Moderate Strategy Fund | Balanced Strategy Fund | Growth Strategy Fund | Equity Growth Strategy Fund | ||||||||
Bonds | ||||||||||||
RIF Core Bond Fund | 55-65 | % | 35-45 | % | 15-25 | % | 0 | % | ||||
Domestic Equities | ||||||||||||
RIF Aggressive Equity Fund | 0-8 | 0-9 | 1-11 | 2-12 | ||||||||
RIF Multi-Style Equity Fund | 5-15 | 10-20 | 16-26 | 21-31 | ||||||||
RIC Quantitative Equity Fund | 5-15 | 10-20 | 15-25 | 20-30 | ||||||||
RIF Real Estate Securities Fund | 0-8 | 0-10 | 1-11 | 2-12 | ||||||||
International Equities | ||||||||||||
RIC Emerging Markets Fund | 0-7 | 0-8 | 0-9 | 0-10 | ||||||||
RIC Global Equity Fund | 0-8 | 0-9 | 1-11 | 2-12 | ||||||||
RIF Non-U.S. Fund | 14-24 | 9-19 | 12-22 | 18-28 |
Investment Objectives of the Underlying Funds:
RIF Core Bond Fund
Seeks to provide current income, and as a secondary objective, capital appreciation.
RIF Aggressive Equity Fund
Seeks to provide long term capital growth.
RIF Multi-Style Equity Fund
Seeks to provide long term capital growth.
RIC Quantitative Equity Fund
Seeks to provide long term capital growth.
RIF Real Estate Securities Fund
Seeks to provide current income and long term capital growth.
RIC Emerging Markets Fund
Notes to Financial Statements | 19 |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
Seeks to provide long term capital growth.
RIC Global Equity Fund
Seeks to provide long term capital growth.
RIF Non-U.S. Fund
Seeks to provide long term capital growth.
2. | Significant Accounting Policies |
The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“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 following is a summary of the significant accounting policies consistently followed by each Fund in the preparation of its financial statements.
Security Valuation
The Funds value their portfolio securities, the shares of the Underlying Funds, at the current net asset value per share of each Underlying Fund.
The Underlying Funds value portfolio securities according to Board-approved securities valuation procedures, including market value procedures, fair value procedures and pricing services. Debt obligation securities maturing within 60 days of the time of purchase are priced using the amortized cost method of valuation, unless the Board determines that amortized cost does not represent market value of short-term debt obligations. The Board has delegated the responsibility for administration of the securities valuation procedures to RFSC.
Ordinarily, the Underlying Funds value each portfolio security based on market quotations provided by pricing services or alternative pricing services or dealers (when permitted by the market value procedures). Generally, Underlying Fund securities are valued at the close of the market on which they are traded as follows:
• | US listed equities; equity and fixed income options: Last sale price; last bid price if no last sale price; |
• | US over-the-counter equities: Official closing price; last bid price if no closing price; |
• | Listed ADRs/GDRs: Last sale price; last bid price if no last sale price; |
• | Municipal bonds, US bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price; |
• | Futures: Settlement price; |
• | Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier; |
• | The value of swap agreements is equal to the Funds’ obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. |
• | Equity securities traded on a national foreign securities exchange or a foreign over the counter market are valued on the basis of the official closing price, or lacking the official closing price, at the last sale price of the primary exchange on which the security is traded. |
If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Underlying Funds will use the security’s fair value, as determined in accordance with the fair value procedures. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market on which they are traded, but rather may be priced by another method that the Funds’ Board of Trustees believes reflects fair value. The use of fair value pricing by an Underlying Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Underlying Fund shares and daily movement of the benchmark index if the index is valued using another pricing method.
20 | Notes to Financial Statements |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
This policy is intended to assure that the Underlying Funds’ net asset values fairly reflect security values as of the time of pricing. Events or circumstances affecting the values of Underlying Fund securities that occur between the closing of the principal markets on which they trade and the time the net asset value of Underlying Fund shares is determined may be reflected in the calculation of net asset values for each applicable Underlying Fund (and each Fund which invests in such Underlying Fund) when the Underlying Funds deem that the particular event or circumstance would materially affect such Underlying Fund’s net asset value. Underlying 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. Underlying Funds that invest in foreign securities are likely to use fair value pricing more often since significant events may occur between the close of foreign markets and the time of pricing which would trigger fair value pricing of the foreign securities. Underlying Funds that invest in low rated debt securities are also likely to use fair value pricing more often since the markets in which such securities are traded are generally thinner, more limited and less active than those for higher rated securities. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the US securities market (defined in the fair value procedures as the movement by any two of four major US Indexes greater than a certain percentage) or other significant event; foreign market holidays if on a daily basis, Fund exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict.
Because foreign securities can trade on non-business days, the net asset value of a Fund’s portfolio that includes an Underlying Fund which invests in foreign securities may change on days when shareholders will not be able to purchase or redeem fund shares.
The Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), effective January 1, 2008. In accordance with SFAS 157, fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. SFAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
• | Level 1 — quoted prices in active markets for identical investments |
• | Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
Inputs used in valuing the Funds’ investments carried at value for the period ended June 30, 2008 were as follows:
Moderate Strategy Fund | Balanced Strategy Fund | Growth Strategy Fund | Equity Growth Strategy Fund | |||||||||
Investments in Securities | Investments in Securities | Investments in Securities | Investments in Securities | |||||||||
Level 1 | $ | 19,514,516 | $ | 63,484,386 | $ | 40,949,784 | $ | 16,067,013 | ||||
Level 2 | — | — | — | — | ||||||||
Level 3 | — | — | — | — | ||||||||
$ | 19,514,516 | $ | 63,484,386 | $ | 40,949,784 | $ | 16,067,013 | |||||
As of June 30, 2008, there were no Level 3 securities held by the Funds.
Notes to Financial Statements | 21 |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
In March 2008, the Financial Accounting Standards board (“FASB”) issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds’ derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds’ financial statement disclosures.
Investment Transactions
Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost.
Investment Income
Distributions of income and capital gains from the 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.
It is each Fund’s intention to qualify as a regulated investment company and distribute all of its taxable income and capital gains. Therefore, no federal income tax provision is required for the Funds.
The FASB issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109” (“FIN 48”), in June 2006. FIN 48 permits the recognition of tax benefits of an uncertain tax position only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Funds adopted the provisions of FIN 48 on January 1, 2007. Management has reviewed the Funds tax positions for all open tax years, and concluded that adoption had no effect on the Funds financial position or results of operations. At June 30, 2008, the Funds have 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.
The Funds intend to file U.S. tax returns for the period ending December 31, 2007. 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 and capital gain distributions, 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 GAAP. As a result, net investment income and net realized gain (or loss) from investment transactions for a reporting period may differ significantly from distributions during such period. The differences between tax regulations and GAAP relate primarily to investments in 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 net asset value.
Expenses
Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include those expenses incurred by the Underlying Funds. Because the Underlying Funds have varied expense and fee levels and the Funds may own different proportions of the Underlying Funds at different times, the amount of the fees and expenses incurred indirectly by the Funds will vary. 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.
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.
22 | Notes to Financial Statements |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
3. | Investment Transactions |
Securities
During the period ended June 30, 2008, purchases and sales of the Underlying Funds (excluding short-term investments) were as follows:
Funds | Purchases | Sales | ||||
Moderate Strategy | $ | 15,328,626 | $ | 3,544,274 | ||
Balanced Strategy | 34,906,928 | 3,370,456 | ||||
Growth Strategy | 18,188,285 | 1,388,437 | ||||
Equity Growth Strategy | 6,692,163 | 2,008,808 |
4. | Related Parties |
Adviser and Administrator
RIMCo is the Funds Advisor and RFSC is the Funds’ administrator. RFSC is a wholly-owned subsidiary of RIMCo. RIMCo is a wholly-owned subsidiary of Frank Russell Company (a subsidiary of The Northwestern Mutual Life Insurance Company). Frank Russell Company provides money manager research services to RIMCo.
The Funds pay an advisory fee to RIMCo and an administrative fee to RFSC.
RIMCo has contractually agreed to waive, at least through April 29, 2009, its 0.20% advisory fee for each Fund. RFSC waives Transfer Agent fees and has contractually agreed to reimburse, at least through April 29, 2009, each Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses exceed 0.11%, 0.08%, 0.04% and 0.04% of the average daily net assets of the Moderate Strategy, Balanced Strategy, Growth Strategy and Equity Growth Strategy Funds, respectively, on an annual basis. Direct Fund-level expenses for the Funds do not include the expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. These arrangements may not be terminated during the relevant period except at the Board’s discreation.
For the period ended June 30, 2008, the fees waived and reimbursed by RIMCo and RFSC amounted to:
Funds | RIMCo | RFSC | Total | ||||||
Moderate Strategy | $ | 15,660 | $ | 20,331 | $ | 35,991 | |||
Balanced Strategy | 48,933 | 24,064 | 72,997 | ||||||
Growth Strategy | 32,949 | 29,822 | 62,771 | ||||||
Equity Growth Strategy | 14,431 | 25,902 | 40,333 |
RIMCo and RFSC do not have the ability to recover amounts waived or reimbursed from previous periods.
Transfer and Dividend Disbursing Agent
RFSC is the Transfer and Dividend Disbursing Agent for the Investment Company. For this service, RFSC is paid a fee for transfer agency and dividend disbursing services provided to the Funds. RFSC retains a portion of this fee for its services provided to the Funds and pays the balance to unaffiliated agents who assisted in providing these services.
Accrued Fees Payable to Affiliates
Accrued fees payable to affiliates for the period ended June 30, 2008 were as follows:
Moderate Strategy Fund | Balanced Strategy Fund | Growth Strategy Fund | Equity Growth Strategy Fund | |||||||||
Administrative fees | $ | 797 | $ | 2,583 | $ | 1,641 | $ | 671 | ||||
Trustee fees | 34 | 116 | 17 | 23 | ||||||||
$ | 831 | $ | 2,699 | $ | 1,658 | $ | 694 | |||||
Notes to Financial Statements | 23 |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
Distributor
On June 2, 2008, Russell Fund Distributor, Inc., a wholly-owned subsidiary of RIMCo, changed its name to Russell Financial Services, Inc. (“Distributor”).
Pursuant to the Distribution Agreement with the Investment Company, the Distributor serves as distributor for all Investment Company portfolio shares. The Distributor receives no compensation from the Investment Company for its services.
Board of Trustees
The Russell Fund Complex consists of RIC, which has 44 Funds, and RIF, which has nine Funds. Each of the Trustees is a Trustee of both RIC and RIF. During the period, the Russell Fund Complex paid each of its independent Trustees a retainer of $60,000 ($52,000 prior to January 1, 2008) per year, $6,500 for each regular quarterly meeting attended in person, $2,500 ($2,000 prior to January 1, 2008) for each special meeting attended in person, and $2,500 ($2,000 prior to January 1, 2008) for each Audit Committee meeting, Nominating and Governance Committee meeting, Investment Committee meeting or any other committee meeting established and approved by the Board that is attended in person. Each Trustee receives a $1,000 ($500 prior to January 1, 2008) fee for attending the quarterly and special meetings and a $500 fee for attending the committee meeting by phone instead of receiving the full fee had the member attended in person. Trustees’ out of pocket expenses are also paid by the Russell Fund Complex. The Audit Committee Chair and Investment Committee Chair are each paid a fee of $12,000 per year and the Nominating and Governance Committee Chair is paid a fee of $6,000 per year. The chairman of the Board receives additional annual compensation of $52,000.
Transactions With Affiliated Companies
An affiliated company is a company in which a Fund has ownership of at least 5% of the voting securities or under common control. Transactions during the period ended June 30, 2008 with Underlying Funds which are an affiliated company or under common control are as follows:
Affiliate | Purchases Cost | Sales Cost | Income Distributions | Capital Gains Distributions | ||||||||
Moderate Strategy Fund | ||||||||||||
RIF Core Bond Fund | $ | 9,029,055 | $ | 2,103,416 | $ | 151,044 | $ | 28,839 | ||||
RIF Aggressive Equity Fund | 456,127 | 131,748 | 885 | 102 | ||||||||
RIF Multi-Style Equity Fund | 1,606,570 | 428,230 | 11,116 | 14,651 | ||||||||
RIC Quantitative Equity Fund | 1,601,234 | 457,156 | 2,366 | — | ||||||||
RIF Real Estate Securities Fund | 462,091 | 164,289 | 2,606 | — | ||||||||
RIC Emerging Markets Fund | 298,669 | 102,427 | — | — | ||||||||
RIC Global Equity Fund | 470,604 | 123,853 | — | — | ||||||||
RIF Non-U.S. Fund | 1,404,276 | 394,556 | — | 12,557 | ||||||||
$ | 15,328,626 | $ | 3,905,675 | $ | 168,017 | $ | 56,149 | |||||
Balanced Strategy Fund | ||||||||||||
RIF Core Bond Fund | $ | 13,284,819 | $ | 1,239,573 | $ | 289,310 | $ | 46,857 | ||||
RIF Aggressive Equity Fund | 1,365,282 | 164,381 | 3,507 | 333 | ||||||||
RIF Multi-Style Equity Fund | 5,398,247 | 521,795 | 45,359 | 53,562 | ||||||||
RIC Quantitative Equity Fund | 5,395,711 | 613,513 | 10,551 | — | ||||||||
RIF Real Estate Securities Fund | 1,914,020 | 582,800 | 12,913 | — | ||||||||
RIC Emerging Markets Fund | 1,038,852 | 122,770 | — | — | ||||||||
RIC Global Equity Fund | 1,422,758 | 148,366 | — | — | ||||||||
RIF Non-U.S. Fund | 5,087,239 | 555,572 | — | 47,603 | ||||||||
$ | 34,906,928 | $ | 3,948,770 | $ | 361,640 | $ | 148,355 | |||||
24 | Notes to Financial Statements |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
Affiliate | Purchases Cost | Sales Cost | Income Distributions | Capital Gains Distributions | ||||||||
Growth Strategy Fund | ||||||||||||
RIF Core Bond Fund | $ | 3,371,621 | $ | 313,258 | $ | 97,947 | $ | 17,712 | ||||
RIF Aggressive Equity Fund | 1,052,577 | 92,311 | 3,460 | 377 | ||||||||
RIF Multi-Style Equity Fund | 3,956,176 | 305,447 | 44,382 | 56,648 | ||||||||
RIC Quantitative Equity Fund | 3,676,350 | 267,105 | 9,255 | — | ||||||||
RIF Real Estate Securities Fund | 1,006,177 | 144,131 | 10,357 | — | ||||||||
RIC Emerging Markets Fund | 734,436 | 100,443 | — | — | ||||||||
RIC Global Equity Fund | 1,120,658 | 105,741 | — | — | ||||||||
RIF Non-U.S. Fund | 3,270,290 | 309,995 | — | 44,109 | ||||||||
$ | 18,188,285 | $ | 1,638,431 | $ | 165,401 | $ | 118,846 | |||||
Equity Growth Strategy Fund | ||||||||||||
RIF Aggressive Equity Fund | $ | 439,459 | $ | 166,307 | $ | 1,797 | $ | 194 | ||||
RIF Multi-Style Equity Fund | 1,719,091 | 510,622 | 24,369 | 30,967 | ||||||||
RIC Quantitative Equity Fund | 1,605,160 | 503,813 | 5,147 | — | ||||||||
RIF Real Estate Securities Fund | 497,223 | 334,763 | 5,291 | — | ||||||||
RIC Emerging Markets Fund | 342,621 | 187,249 | — | — | ||||||||
RIC Global Equity Fund | 457,554 | 158,427 | — | — | ||||||||
RIF Non-U.S. Fund | 1,631,055 | 690,746 | — | 26,476 | ||||||||
$ | 6,692,163 | $ | 2,551,927 | $ | 36,604 | $ | 57,637 | |||||
5. | Federal Income Taxes |
The Funds may have net tax basis capital loss carryforwards which may be applied against any realized net taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first. At December 31, 2007, the Funds had no capital loss carryforwards.
At June 30, 2008, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Moderate Strategy Fund | Balanced Strategy Fund | Growth Strategy Fund | Equity Growth Strategy Fund | |||||||||||||
Cost of Investments | $ | 20,633,680 | $ | 68,756,758 | $ | 45,723,711 | $ | 18,922,253 | ||||||||
Unrealized Appreciation | $ | — | $ | — | $ | — | $ | — | ||||||||
Unrealized Depreciation | (119,164 | ) | (5,272,373 | ) | (4,773,927 | ) | (2,855,240 | ) | ||||||||
Net Unrealized Appreciation (Depreciation) | $ | (119,164 | ) | $ | (5,272,373 | ) | $ | (4,773,927 | ) | $ | (2,855,240 | ) | ||||
6. | Fund Share Transactions (amounts in thousands) |
Share transactions for the periods ended June 30, 2008 and December 31, 2007 were as follows:
Shares | Dollars | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||
Moderate Strategy Fund | ||||||||||||||
Proceeds from shares sold | 1,544 | 950 | $ | 14,964 | $ | 9,530 | ||||||||
Proceeds from reinvestment of distributions | 34 | 22 | 324 | 209 | ||||||||||
Payments for shares redeemed | (354 | ) | (106 | ) | (3,402 | ) | (1,047 | ) | ||||||
Net increase (decrease) | 1,224 | 866 | $ | 11,886 | $ | 8,692 | ||||||||
Balanced Strategy Fund | ||||||||||||||
Proceeds from shares sold | 3,687 | 3,701 | $ | 34,315 | $ | 37,178 | ||||||||
Proceeds from reinvestment of distributions | 160 | 91 | 1,470 | 903 | ||||||||||
Payments for shares redeemed | (351 | ) | (197 | ) | (3,270 | ) | (2,003 | ) | ||||||
Net increase (decrease) | 3,496 | 3,595 | $ | 32,515 | $ | 36,078 | ||||||||
Notes to Financial Statements | 25 |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
6. | Fund Share Transactions (amounts in thousands) (continued) |
Shares | Dollars | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||
Growth Strategy Fund | ||||||||||||||
Proceeds from shares sold | 1,966 | 2,762 | $ | 17,943 | $ | 27,787 | ||||||||
Proceeds from reinvestment of distributions | 143 | 66 | 1,271 | 651 | ||||||||||
Payments for shares redeemed | (155 | ) | (61 | ) | (1,424 | ) | (623 | ) | ||||||
Net increase (decrease) | 1,954 | 2,767 | $ | 17,790 | $ | 27,815 | ||||||||
Equity Growth Strategy Fund | ||||||||||||||
Proceeds from shares sold | 762 | 1,332 | $ | 6,661 | $ | 13,593 | ||||||||
Proceeds from reinvestment of distributions | 92 | 37 | 783 | 358 | ||||||||||
Payments for shares redeemed | (236 | ) | (46 | ) | (2,076 | ) | (458 | ) | ||||||
Net increase (decrease) | 618 | 1,323 | $ | 5,368 | $ | 13,493 | ||||||||
7. | Interfund Lending Program |
The Investment Company has been granted permission from the Securities and Exchange Commission to participate in a joint lending and borrowing facility (the “Credit Facility”). Funds of the Investment Company and RIC Funds may borrow money from the RIC Money Market Fund for temporary purposes. All such borrowing and lending will be subject to a participating fund’s fundamental investment limitations. The RIC Money Market Fund will lend through the program only when the returns are higher than those available from an investment in repurchase agreements or short-term reserves. The Funds will borrow through the program only when the costs are equal to or lower than the cost of bank loans. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one business day’s notice. A participating fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to the RIC Money Market Fund could result in a lost investment opportunity or additional borrowing costs. For the period ended June 30, 2008, the Funds presented herein did not participate in the interfund lending program.
8. | Record Ownership |
As of June 30, 2008, the following table includes shareholders of record with greater than 10% of the total outstanding shares of each respective Fund. The Northwestern Mutual Life Insurance Company accounts were the largest shareholders in each Fund.
Funds | # of Shareholders | % | ||
Moderate Strategy | 1 | 98.6 | ||
Balanced Strategy | 1 | 98.2 | ||
Growth Strategy | 1 | 98.2 | ||
Equity Growth Strategy | 1 | 97.7 |
26 | Notes to Financial Statements |
Table of Contents
Russell Investment Funds (“RIF”)
LifePoints Variable Target Portfolio Funds
Basis for Approval of Investment Advisory Contracts
Approval of Investment Advisory Agreement
The Board of Trustees, including all of the Independent Trustees, last considered and approved the continuation of the advisory agreement with RIMCo (the “RIMCo Agreement”) and the portfolio management contract (collectively, the “portfolio management contracts”) with each Money Manager of the funds in which the Funds invest (the “Underlying Funds”) at a meeting held on April 22, 2008. During the course of a year, the Trustees receive a wide variety of materials regarding the investment performance of the Funds, sales and redemptions of the Funds’ and Underlying Funds’ shares, and the management of the Funds and the Underlying Funds by RIMCo. In preparation for the annual review, the Independent Trustees, with the advice and assistance of their independent counsel, also requested and the Board considered (1) information and reports prepared by RIMCo relating to the services provided by RIMCo (and its affiliates) to the Funds and the Underlying Funds; and (2) information (the “Third-Party Information”) received from an independent, nationally recognized provider of investment company information comparing the performance of each of the Funds and the Underlying Funds and their respective operating expenses over various periods of time with other peer funds (“Comparable Funds”) not managed by RIMCo believed by the provider to be generally comparable in investment objectives and size to the Funds and the Underlying Funds. The foregoing information requested by the Trustees or provided by RIMCo is collectively called the “Agreement Renewal Information.” The Trustees’ evaluations also reflected the knowledge and familiarity gained as Board members of the Funds and other funds in the same complex with respect to services provided by RIMCo, RIMCo’s affiliates and each Money Manager. The Trustees received a memorandum from counsel to the Funds discussing the legal standards for their consideration of the continuations of the RIMCo Agreement and the portfolio management contracts and the Independent Trustees separately received a memorandum regarding their responsibilities from their independent counsel.
On April 21, 2008, the Independent Trustees met to review the Agreement Renewal Information in a private session with their independent counsel at which no representatives of RIMCo or management were present. At the April 22 meeting of the Board of Trustees, the Board, including the Independent Trustees, reviewed the proposed continuance of the RIMCo Agreement and the portfolio management contracts with management and independent counsel to the Independent Trustees. Presentations made by RIMCo to the Board as part of this review encompassed the Funds and all other RIMCo-managed funds for which the Board has supervisory responsibility. Following this review, but prior to voting, the Independent Trustees again met in a private session with their independent counsel to evaluate additional information and analyses received from RIMCo and management at the Board meeting. The discussion below reflects all of these reviews.
In evaluating the portfolio management contracts, the Board considered that the Underlying Funds, in employing a manager-of-managers method of investment, operate in a manner that is distinctly different from most other investment companies. In the case of most other investment companies, an 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. RIMCo has engaged multiple unaffiliated Money Managers for all Underlying Funds.
The Board considered that RIMCo (rather than any Money Manager) is responsible under the RIMCo Agreement for allocating assets of each Fund among its Underlying Funds and for determining, implementing and maintaining the investment program for each Underlying Fund. The assets of each Fund are invested in different combinations of the Underlying Funds pursuant to target asset allocations set by RIMCo. RIMCo may modify the target asset allocation for any Fund and/or the Underlying Funds in which the Funds invest. Assets of each Underlying Fund generally have been allocated among the multiple Money Managers selected by RIMCo, subject to Board approval, for that Underlying Fund. RIMCo manages directly a portion of certain Underlying Funds’ assets employing a “select holdings strategy,” as described below, and directly manages the investment of each Underlying Fund’s cash reserves. RIMCo also may manage directly any portion of each Underlying Fund’s assets that RIMCo determines not to allocate to the Money Managers and portions of an Underlying Fund during transitions between Money Managers. In all cases, assets are managed directly by RIMCo pursuant to authority granted by the RIMCo Agreement.
RIMCo is responsible for selecting, subject to Board approval, Money Managers for each Underlying Fund and for actively managing allocations and reallocations of its assets among the Money Managers. RIMCo’s goal is to construct and manage diversified portfolios in a risk aware manner. Each Money Manager for an Underlying Fund in effect performs the function of an individual portfolio manager who is responsible for selecting portfolio securities for the portion of the Underlying Fund assigned to it by RIMCo (each, a “segment”) in accordance with the Fund’s applicable investment objective, policies and restrictions, any constraints placed by RIMCo upon their selection of portfolio securities and the Money Manager’s specified role in an Underlying Fund. RIMCo is responsible for communicating performance expectations to each Money Manager; supervising compliance by each Money Manager with each Underlying Fund’s investment objective and policies; authorizing Money Managers to engage in certain investment
Basis for Approval of Investment Advisory Contracts | 27 |
Table of Contents
Russell Investment Funds (“RIF”)
LifePoints Variable Target Portfolio Funds
Basis for Approval of Investment Advisory Contracts, continued
strategies for an Underlying Fund; and recommending 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, RIMCo is responsible for recommending to the Board additions of new Money Managers or replacements of existing Money Managers at any time when, based on RIMCo’s research and ongoing review and analysis, such actions are appropriate. RIMCo may impose specific investment constraints from time to time for each Money Manager intended to capitalize on the strengths of that Money Manager or to coordinate the investment activities of Money Managers for an Underlying Fund in a complementary manner. Therefore, the performance of individual Money Managers for an Underlying Fund may reflect the roles assigned to them by RIMCo in the Underlying Funds’ investment activities and any constraints placed by RIMCo upon their selection of portfolio securities. In light of the foregoing, the overall performance of each Underlying Fund over appropriate periods reflects, in great part, the performance of RIMCo in designing the Underlying Fund’s investment program, structuring an Underlying Fund, selecting an effective Money Manager with a particular investment style or sub-style for a segment that is complementary to the styles of the Money Managers of other Underlying Fund segments, and allocating assets among the Money Managers in a manner designed to achieve the objectives of the Underlying Fund.
The Board considered that the prospectuses for the Funds and the Underlying Funds and other public disclosures emphasize to investors RIMCo’s role as the principal investment manager for each Underlying Fund, rather than the investment selection role of the 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 Fund.
The Board also considered the demands and complexity of managing the Underlying Funds pursuant to the manager-or-managers structure, the special expertise of RIMCo with respect to the manager-of-managers structure of the Underlying Funds and the likelihood that, at the current expense ratio of each Underlying Fund, there would be no acceptable alternative investment managers to replace RIMCo on comparable terms given the need to continue the manager-of-managers strategy of each Underlying Fund selected by shareholders in purchasing their shares of a Fund or Underlying Fund.
In addition to these general factors relating to the manager-of-managers structure of the Underlying Funds, the Trustees considered, with respect to each Fund and Underlying Fund, various specific factors in evaluating renewal of the RIMCo Agreement, including the following:
1. | The nature, scope and quality of the services provided to the Fund and the Underlying Fund by RIMCo; |
2. | The advisory fee paid by the Fund or the Underlying Fund to RIMCo and the fact that it encompasses all investment advisory fees paid by the Fund or Underlying Fund, including the fees for any Money Managers of such Underlying Fund; |
3. | Information provided by RIMCo as to other fees and benefits received by RIMCo or its affiliates from the Fund or Underlying Fund, including any administrative, transfer agent, cash management and securities lending fees, soft dollar arrangements and commissions in connection with portfolio securities transactions; |
4. | Information provided by RIMCo as to expenses incurred by the Fund or the Underlying Fund; and |
5. | Information provided by RIMCo as to the profits that RIMCo derives from its mutual fund operations generally and from the Fund or Underlying Fund. |
As noted above, RIMCo pursuant to the terms of the RIMCo Agreement directly managed a portion—up to 10%—of the assets of the RIF Multi-Style Equity Fund and the Russell Investment Company (“RIC”) Quantitative Equity Fund (each a “Participating Underlying Fund”) during the past year utilizing a select holdings strategy, the actual allocation being determined by each Participating Underlying Fund’s RIMCo portfolio manager. The select holdings strategy utilized by RIMCo in managing such assets for a Participating Underlying Fund is designed to increase the Participating Underlying Fund’s exposure to stocks that are viewed as attractive by multiple Money Managers of that Participating Underlying Fund. The Board reviewed the results of the select holdings strategy in respect of each Participating Underlying Fund since implementation taking into account that the strategy has been utilized for a limited period of time. With respect to each Participating Underlying Fund, the Trustees considered that RIMCo is not required to pay investment advisory fees to a Money Manager with respect to assets for which the select holdings strategy is utilized and that the profits derived by RIMCo generally and from the Participating Underlying Fund consequently may increase incrementally. The Board, however, also considered RIMCo’s advice that it pays certain Money Managers additional fees for providing information and other services in connection with the select holdings strategy and incurs additional costs in carrying out the select holdings strategy, the limited amount of assets that are managed directly by RIMCo pursuant to the select holdings strategy, and the fact that the aggregate investment advisory fees paid by the Participating Underlying Fund are not increased as a result of the select holdings strategy.
28 | Basis for Approval of Investment Advisory Contracts |
Table of Contents
Russell Investment Funds (“RIF”)
LifePoints Variable Target Portfolio Funds
Basis for Approval of Investment Advisory Contracts, continued
In evaluating the reasonableness of the Funds’ and Underlying Funds’ investment advisory fees in light of Fund and Underlying Fund performance, the Board considered that RIMCo, in the Agreement Renewal Information and at past meetings, noted differences between the investment strategies of certain Underlying Funds and their respective Comparable Funds in pursuing their investment objectives, including Fund strategies which seek to achieve a lower tracking error (i.e., the difference, whether positive or negative, between the return of a fund and its benchmark) and resulting lower return volatility than Comparable Funds. According to RIMCo, these strategies may be expected to result, and for certain Underlying Funds during the periods covered by the Third-Party Information did result, in lower performance of the Funds than that of some of their respective Comparable Funds. According to RIMCo, the strategies pursued by the Underlying Funds, among other things, are intended to result in less volatile, more moderate returns relative to each Fund’s performance benchmark rather than more volatile, more extreme returns that its Comparable Funds may experience over time.
The Board considered for each Fund and Underlying Fund whether economies of scale have been realized and whether the fees for such Fund or Underlying Fund appropriately reflect or should be revised to reflect any such economies. The Board determined that, after giving effect to any applicable fee or expense caps, waivers or reimbursements, the investment advisory fees for each Fund or Underlying Fund appropriately reflect any economies of scale realized by such Fund, based upon such factors as the variability of Money Manager investment advisory fees and other factors associated with the manager-of-managers structure employed by the Underlying Funds. The Trustees considered that fees payable to RIMCo by institutional clients with investment objectives similar to those of the Funds and other funds under the Board’s supervision, including the Underlying Funds are lower, and may, in some cases, be substantially lower, than the rates paid by funds supervised by the Board, including the Funds. The Trustees considered the differences in the scope of services it provides to institutional clients and the funds under its supervision, including the Underlying Funds. In response to the Trustees’ inquiries, RIMCo has previously noted, among other things, that institutional clients have fewer administrative needs than the Funds. RIMCo has in the past noted that since the Funds must constantly issue and redeem their shares, they are more difficult to manage than institutional accounts, where assets are relatively stable. Accordingly, the Trustees did not regard these fee differences as relevant to their deliberations.
On the basis of the Agreement Renewal Information, and other information previously received by the Board from RIMCo during the course of the current year or prior years or presented at the April 22 Board meeting by RIMCo, the Board, in respect of each Fund and Underlying Fund, found, after giving effect to waivers and/or reimbursements and considering differences in the composition and investment strategies of their respective Comparable Funds (1) the advisory fee charged by RIMCo to be reasonable in light of the nature, scope and quality of the services provided to the Funds or Underlying Funds; (2) the relative expense ratio of each Fund and Underlying Fund was comparable to those of its Comparable Funds; (3) RIMCo’s methodology of allocating expenses of operating funds in the complex was reasonable; and (4) RIMCo’s profitability with respect to the Fund and each Underlying Fund was not excessive in light of the nature, scope and quality of the services provided by RIMCo.
The Board further concluded that, under the circumstances, the performance of each of the Funds supported continuation of the RIMCo Agreement. In evaluating performance, the Board considered each Fund’s and Underlying Fund’s absolute performance and its performance relative to appropriate benchmarks and indices and its Comparable Funds. In assessing performance, the Board also considered RIMCo’s investment strategy of managing the Underlying Funds in a risk aware manner.
After considering the foregoing and other relevant factors, the Board concluded that continuation of the RIMCo Agreement on its current terms and conditions would be in the best interests of the Funds and their respective shareholders and voted to approve the continuation of the Agreement.
At the April 22 Board 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 RIMCo reporting, among other things, for each Money Manager, the Money Manager’s performance over various periods; RIMCo’s assessment of the performance of the Money Manager; any significant business relationships between the Money Manager and RIMCo or Russell Financial Services, Inc., the Funds’ and Underlying Funds’ underwriter; and RIMCo’s recommendation to retain the Money Manager at the current fee rate, to retain the Money Manager at a reduced fee rate or to terminate the Money Manager. RIMCo recommended that each Money Manager be retained at its current fee rate. RIMCo has advised the Board that it does not regard Money Manager profitability as relevant to its evaluation of the portfolio management contracts with Money Managers because the willingness of Money Managers to serve in such capacity depends upon arm’s-length negotiations with RIMCo; RIMCo is aware of the fees charged by Money Managers to other clients; and RIMCo believes that the fees agreed upon with Money Managers are reasonable in light of the anticipated quality of investment advisory services to be rendered. The Board accepted RIMCo’s explanation in light of the Board’s findings as to the reasonableness of the aggregate investment advisory fees paid by each Fund and Underlying Fund and the fact that each Money Manager’s fee is paid by RIMCo.
Basis for Approval of Investment Advisory Contracts | 29 |
Table of Contents
Russell Investment Funds (“RIF”)
LifePoints Variable Target Portfolio Funds
Basis for Approval of Investment Advisory Contracts, continued
Based substantially upon RIMCo’s recommendations together with the information received from RIMCo in support of its recommendations at the April 22 meeting, the Board concluded that the fees paid to the Money Managers of each Underlying Fund are reasonable in light of the 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 the Fund and its shareholders.
In their deliberations, the Trustees did not identify any particular information as to the RIMCo Agreement or, other than RIMCo’s recommendation, the portfolio management contract with any Money Manager for an Underlying Fund that was all-important or controlling 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.
Also, the Board of Trustees received a proposal from RIMCo at a meeting held on May 20, 2008, to effect a money manager change for the RIC Global Equity Fund. In the case of the proposed change, the Trustees approved the terms of the proposed portfolio management contract based substantially upon RIMCo’s recommendation to hire the Money Manager at the proposed fee rate; any significant business relationships between the Money Manager and RIMCo or RFS, the Fund’s underwriter; RIMCo’s explanation as to the lack of relevance of 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 RIMCo; RIMCo’s awareness of the fees charged by the Money Manager to other clients; and RIMCo’s belief that the proposed investment advisory fees would be reasonable in light of the anticipated quality of investment advisory services to be rendered. The Trustees also considered their findings at their April 22, 2008 meeting as to the reasonableness of the aggregate investment advisory fees paid by the Fund, and the fact that the aggregate investment advisory fees paid by the Fund would not increase as a result of the implementation of the proposed money manager change because the money managers’ investment advisory fee is paid by RIMCo.
30 | Basis for Approval of Investment Advisory Contracts |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Shareholder Requests for Additional Information — June 30, 2008 (Unaudited)
A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third quarters of each year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, (ii) on the Securities and Exchange Commission’s website at www.sec.gov, and (iii) at the Securities and Exchange Commission’s public reference room.
The Board has delegated to RIMCo, 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. RIMCo has established a proxy voting committee (“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 is 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.
Financial Statements of the Underlying Funds can be obtained at no charge by calling the Funds at (800) 787-7354.
If possible, depending on contract owner registration and address information, and unless you have otherwise opted out, only one copy of the RIF prospectus and each annual and semi-annual report will be sent to contract owners at the same address. If you would like to receive a separate copy of these documents, please contact your Insurance Company. If you currently receive multiple copies of the prospectus, annual report and semi-annual report and would like to request to receive a single copy of these documents in the future, please call your Insurance Company.
Some Insurance Companies may offer electronic delivery of the Funds’ prospectus and annual and semiannual reports. Please contact your Insurance Company for further details.
Shareholder Requests for Additional Information | 31 |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Disclosure of Information about Fund Trustees and Officers — June 30, 2008 (Unaudited)
The following tables provide information for each officer and trustee of the Russell Fund Complex. The Russell Fund Complex consists of Russell Investment Company (“RIC”), which has 44 funds, and Russell Investment Funds (“RIF”), which has 9 funds. Each of the trustees is a trustee of both RIC and RIF. The first table provides information for the interested trustee. The second table provides information for the independent trustees. The third table provides information for the trustees emeritus. The fourth table provides information for the officers.
Name, Age, Address | Position(s) Held with Fund and Length of Time Served | Term of Office* | Principal Occupation(s) During the Past 5 Years | No. of Portfolios in Russell Fund Complex Overseen by Trustee | Other Directorships Held by Trustee | |||||
INTERESTED TRUSTEES | ||||||||||
#Greg J. Stark Born May 3, 1968
909 A Street Tacoma, Washington 98402-1616 | President and Chief Executive Officer since 2004
Trustee since 2007 | Appointed until successor is duly elected and qualified
Until successor is chosen and qualified by Trustees | • President and CEO RIC and RIF • Chairman of the Board, President and CEO, RIMCo • Chairman of the Board, President and CEO, RFD • Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) • Until 2004, Managing Director, of Individual Investor Services, FRC • 2000 to 2004 Managing Director, Sales and Client Service, RIMCo | 53 | None | |||||
INDEPENDENT TRUSTEES | ||||||||||
Thaddas L. Alston Born April 7, 1945
909 A Street Tacoma, Washington 98402-1616 | Trustee since 2006 | Appointed until successor is duly elected and qualified | • Senior Vice President, Larco Investments, Ltd. (real estate firm) | 53 | None | |||||
Kristianne Blake
909 A Street Tacoma, Washington 98402-1616 | Trustee
Chairperson since 2005 | Appointed until successor is duly elected and qualified
Annual | • Director and Chairman of the Audit Committee, Avista Corp. • Trustee and Chairman of the Operations Committee, Principal Funds and Principal Variable Contracts Funds • Regent, University of Washington • President, Kristianne Gates Blake, P.S. (accounting services) • February 2002 to June 2005, Chairman of the Audit Committee, RIC and RIF • Trustee and Chairman of the Operations and Distribution Committee, WM Group of Funds, 1999–2006 | 53 | • Director, Avista Corp; (electric utilities) • Trustee, Principal Investors Funds (investment company); • Trustee, Principal Variable Contracts Funds (investment company) |
# | Mr. Stark is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
* | Each Trustee is subject to mandatory retirement at age 72. |
32 | Disclosure of Information about Fund Trustees and Officers |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Disclosure of Information about Fund Trustees and Officers, continued — June 30, 2008 (Unaudited)
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 | |||||
INDEPENDENT TRUSTEES (continued) | ||||||||||
Daniel P. Connealy Born June 6, 1946
909 A Street Tacoma, Washington 98402-1616 | Trustee since 2003
Chairman of Audit Committee since 2005 | Appointed until successor is duly elected and qualified
Appointed until successor is duly elected and qualified | • June 2004 to present, Senior Vice President and Chief Financial Officer, Waddell & Reed Financial, Inc. • 2001–2003, Vice President and Chief Financial Officer, Janus Capital Group Inc. | 53 | None | |||||
Jonathan Fine Born July 8, 1954
909 A Street Tacoma, Washington 98402-1616 | Trustee since 2004 | Appointed until successor is duly elected and qualified | • President and Chief Executive Officer, United Way of King County, WA | 53 | None | |||||
Raymond P. Tennison, Jr. Born December 21, 1955
909 A Street Tacoma, Washington 98402-1616 | Trustee since 2000
Chairman of the Nominating and Governance Committee since 2007 | Appointed until successor is duly elected and qualified.
Appointed until successor is duly elected and qualified | • President, Simpson Investment Company and several additional subsidiary companies, including Simpson Timber Company, Simpson Paper Company and Simpson Tacoma Kraft Company | 53 | None | |||||
Jack R. Thompson Born March 21, 1949
909 A Street Tacoma, Washington 98402-1616 | Trustee since 2005 | Appointed until successor is duly elected and qualified | • September 2003 to present, Independent Board Chair and Chairman of the Audit Committee, Sparx Funds • September 2007 to present, Director, Life Advantage Corporation (health products company) • May 1999 to May 2003, President, Chief Executive Officer and Director, Berger Financial Group, LLC • May 1999 to May 2003, President and Trustee, Berger Funds | 53 | • Director, Sparx Japan Funds (investment company) • Director, Life Advantage Corporation (health products company) | |||||
Julie W.Weston Born October 2, 1943
909 A Street Tacoma, Washington 98402-1616 | Trustee since 2002
Chairperson of the Investment Committee since 2006 | Appointed until successor is duly elected and qualified
Appointed until successor is duly elected and qualified | • Retired | 53 | None |
* | Each Trustee is subject to mandatory retirement at age 72. |
Disclosure of Information about Fund Trustees and Officers | 33 |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Disclosure of Information about Fund Trustees and Officers, continued — June 30, 2008 (Unaudited)
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 | |||||
TRUSTEES EMERITUS | ||||||||||
*George F. Russell, Jr. Born July 3, 1932
909 A Street Tacoma, Washington 98402-1616 | Trustee Emeritus and Chairman Emeritus since 1999 | Until resignation or removal | • Director Emeritus, Frank Russell Company (investment consultant to institutional investors (“FRC”)); and RIMCo • Chairman Emeritus, RIC and RIF; Russell Implementation Services Inc. (broker-dealer and investment adviser (“RIS”)); Russell 20-20 Association (non-profit corporation); and Russell Trust Company (non-depository trust company (“RTC”)) • Chairman, Sunshine Management Services, LLC (investment adviser) | 53 | None | |||||
Paul E. Anderson Born October 15, 1931
909 A Street Tacoma, Washington 98402-1616 | Trustee Emeritus since 2007 | Five year term | • President, Anderson Management Group LLC (private investments consulting) • February 2002 to June 2005, Lead Trustee, RIC and RIF • Trustee of RIC and RIF Until 2006 • Chairman of the Nominating and Governance Committee 2006 | 53 | None | |||||
William E. Baxter Born June 8, 1925
909 A Street Tacoma, Washington 98402-1616 | Trustee Emeritus since 2004 | Five year term | • Retired since 1986 • Trustee of RIC and RIF Until 2004 | 53 | None | |||||
Lee C. Gingrich Born October 6, 1930
909 A Street Tacoma, Washington 98402-1616 | Trustee Emeritus since 2006 | Five year term | • Retired since 1995 • Trustee of RIC and RIF Until 2005 • Chairman of the Nominating and Governance Committee 2001–2005 | 53 | None | |||||
Eleanor W. Palmer Born May 5, 1926
909 A Street Tacoma, Washington 98402-1616 | Trustee Emeritus since 2004 | Five year term | • Retired since 1981 • Trustee of RIC and RIF Until 2004 | 53 | None |
* | Mr. Russell is also a director emeritus of one or more affiliates of RIC and RIF. |
34 | Disclosure of Information about Fund Trustees and Officers |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
Disclosure of Information about Fund Trustees and Officers, continued — June 30, 2008
(Unaudited)
Name, Age, Address | Position(s) Held with Fund and Length of Time Served | Term of Office | Principal Occupation(s) During the Past 5 Years | |||
OFFICERS | ||||||
Greg J. Stark Born May 3, 1968
909 A Street Tacoma, Washington 98402-1616 | President and Chief Executive Officer since 2004 | Until successor is chosen and qualified by Trustees | • President and CEO, RIC and RTF • Chairman of the Board, President and CEO, RIMCo • Chairman of the Board, President and CEO, RFD • Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) • Until 2004, Managing Director of Individual Investor Services, FRC • 2000 to 2004, Managing Director, Sales and Client Service, RIMCo | |||
Cheryl Wichers Born December 16, 1966
909 A Street Tacoma, Washington 98402-1616 | Chief Compliance Officer since 2005 | Until removed by Independent Trustees | • Chief Compliance Officer, RIC • Chief Compliance Officer, RTF • Chief Compliance Officer, RIMCo • April 2002–May 2005, Manager, Global Regulatory Policy • 1998–2002, Compliance Supervisor, Russell Investment Group | |||
Peter Gunning Born February 22, 1967
909 A Street Tacoma, Washington 98402-1616 | Chief Investment Officer since 2008 | Until removed by Trustees | • Chief Investment Officer, RIC, RIF • 1996 to 2008, Chief Financial Officer, Russell, Asia Pacific | |||
Mark E. Swanson Born November 26, 1963
909 A Street Tacoma, Washington 98402-1616 | Treasurer and Chief Accounting Officer since 1998 | Until successor is chosen and qualified by Trustees | • Treasurer, Chief Accounting Officer and CFO, RIC and RIF • Director, Funds Administration, RIMCo, RTC and RFD • Treasurer and Principal Accounting Officer, SSgA Funds | |||
Gregory J. Lyons Born August 24, 1960
909 A Street Tacoma, Washington 98402-1616 | Secretary since 2007 | Until successor is chosen and qualified by Trustees | • Associate General Counsel and Assistant Secretary FRC and RIA • Director and Secretary, RIMCo and RFD • Secretary and Chief Legal Counsel, RIC and RIF |
Disclosure of Information about Fund Trustees and Officers | 35 |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
909 A Street, Tacoma, Washington 98402
(800) 787-7354
Interested Trustees
Greg J. Stark
Independent Trustees
Thaddas L. Alston
Kristianne Blake
Daniel P. Connealy
Jonathan Fine
Raymond P. Tennison, Jr.
Jack R. Thompson
Julie W. Weston
Trustees Emeritus
George F. Russell, Jr.
Paul E. Anderson
William E. Baxter
Lee C. Gingrich
Eleanor W. Palmer
Officers
Greg J. Stark, President and Chief Executive Officer
Cheryl Wichers, Chief Compliance Officer
Peter Gunning, Chief Investment Officer
Mark E. Swanson, Treasurer and Chief Accounting Officer
Gregory J. Lyons, Secretary
Adviser
Russell Investment Management Company
909 A Street
Tacoma, WA 98402
Administrator and Transfer and Dividend Disbursing Agent
Russell Fund Services Company
909 A Street
Tacoma, WA 98402
Custodian
State Street Bank and Trust Company
Josiah Quincy Building
200 Newport Avenue
North Quincy, MA 02171
Office of Shareholder Inquiries
909 A Street
Tacoma, WA 98402
(800) 787-7354
Legal Counsel
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116-5021
Distributor
Russell Financial Services, Inc.
909 A Street
Tacoma, WA 98402
Money Managers of Underlying Funds as of June 30, 2008
RIF Core Bond Fund
Goldman Sachs Asset Management, L.P., New York, NY
Metropolitan West Asset Management, LLC, Los Angeles, CA
Pacific Investment Management Company LLC, Newport Beach, CA
RIF Aggressive Equity Fund
ClariVest Asset Management LLC, San Diego, CA
DePrince, Race & Zollo, Inc., Winter Park, FL
Gould Investment Partners LLC, Berwyn, PA
Jacobs Levy Equity Management, Inc., Florham Park, NJ
PanAgora Asset Management, Inc., Boston, MA
Ranger Investment Management, L.P., Dallas, TX
Signia Capital Management, LLC, Spokane, WA
Tygh Capital Management, Inc., Portland, OR
RIF Multi-Style Equity Fund
Arnhold and S. Bleichroeder Advisers, LLC, New York, NY
Columbus Circle Investors, Stamford, CT
DePrince, Race & Zollo, Inc., Winter Park, FL
Institutional Capital LLC, Chicago, IL
Jacobs Levy Equity Management, Inc., Florham Park, NJ
Montag & Caldwell, Inc., Atlanta, GA
Suffolk Capital Management, LLC, New York, NY
Turner Investment Partners, Inc., Berwyn, PA
RIC Quantitative Equity Fund
Aronson+Johnson+Ortiz, LP, Philadelphia, PA
Franklin Portfolio Associates, LLC, Boston, MA
Goldman Sachs Asset Management, L.P., New York, NY
Jacobs Levy Equity Management, Inc., Florham Park, NJ
RIF Real Estate Securities Fund
AEW Management and Advisors, L.P., Boston, MA
Cohen & Steers Capital Management, Inc., New York, NY
Heitman Real Estate Securities LLC, Chicago, IL
INVESCO Institutional (N.A.), Inc. which acts as a money manager to the Fund through its INVESCO Real Estate division,
Dallas, TX RREEF America L.L.C., Chicago, IL
36 | Adviser, Money Managers and Service Providers |
Table of Contents
Russell Investment Funds
LifePoints® Funds Variable Target Portfolio Series
909 A Street, Tacoma, Washington 98402
(800) 787-7354
RIC Emerging Markets Fund
AllianceBernstein L.P., New York, NY
Arrowstreet Capital, Limited Partnership, Boston, MA
Genesis Asset Managers, LLP, London, United Kingdom
Harding, Loevner Management, L.P., Somerville, NJ
T. Rowe Price International, Inc., Baltimore, MD
UBS Global Asset Management (Americas) Inc., Chicago, IL
RIC Global Equity Fund
ClariVest Asset Management LLC, San Diego, CA
Gartmore Global Partners, London, United Kingdom
Harris Associates, L.P., Chicago, IL
Tradewinds Global Investors LLC, Los Angeles, CA
T. Rowe Price International, Inc., Baltimore, MD
RIF Non-U.S. Fund
Altrinsic Global Advisors, LLC, Stamford, CT
AQR Capital Management, LLC, Greenwich, CT
MFS Institutional Advisors, Inc., Boston, MA
Wellington Management Company, LLP, Boston, MA
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 Company. Such offering is made only by Prospectus, which includes details as to offering price and other material information.
Adviser, Money Managers and Service Providers | 37 |
Table of Contents
Russell Investment Funds | 909 A Street | 800-787-7354 | ||
Tacoma, Washington 98402 | Fax: 253-591-3495 | |||
www.russell.com |
36-08-188
Table of Contents
2008 SEMIANNUAL REPORT
Russell Investment Funds
JUNE 30, 2008
FUND
Multi-Style Equity Fund
Aggressive Equity Fund
Non-U.S. Fund
Real Estate Securities Fund
Core Bond Fund
Table of Contents
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.
Table of Contents
Russell Investment Funds
Semiannual Report
June 30, 2008 (Unaudited)
Table of Contents
Russell Investment Funds
Copyright © Russell Investments 2008. All rights reserved.
Russell Investments is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.
Fund objectives, risks, charges and expenses should be carefully considered before investing. 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 Financial Services, Inc. (effective June 2, 2008, the name changed from Russell Fund Distributors, Inc.), member FINRA, part of Russell Investments.
Russell Investments and Standard & Poor’s Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly.
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.
Table of Contents
Multi-Style Equity Fund
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value | ||||||
January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
June 30, 2008 | $ | 885.50 | $ | 1,020.54 | ||
Expenses Paid During Period* | $ | 4.08 | $ | 4.37 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.87% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
Multi-Style Equity Fund | 3 |
Table of Contents
Russell Investment Funds
Multi-Style Equity Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Common Stocks - 93.7% | ||||
Auto and Transportation - 1.1% | ||||
Arkansas Best Corp. (Ñ) | 1,200 | 44 | ||
Autoliv, Inc. (Ñ) | 6,700 | 312 | ||
Expeditors International of Washington, Inc. (Ñ) | 8,260 | 355 | ||
FedEx Corp. | 10,200 | 804 | ||
Genuine Parts Co. (Ñ) | 16,158 | 641 | ||
Lear Corp. (Æ)(Ñ) | 4,600 | 65 | ||
Skywest, Inc. (Ñ) | 6,800 | 86 | ||
TRW Automotive Holdings Corp. (Æ) | 8,000 | 148 | ||
Union Pacific Corp. (Ñ) | 31,360 | 2,368 | ||
4,823 | ||||
Consumer Discretionary - 13.4% | ||||
Activision, Inc. (Æ) | 12,400 | 423 | ||
Amazon.com, Inc. (Æ)(Ñ) | 7,800 | 572 | ||
AutoNation, Inc. (Æ)(Ñ) | 19,700 | 197 | ||
Avon Products, Inc. | 22,600 | 814 | ||
Barnes & Noble, Inc. (Ñ) | 3,700 | 92 | ||
BJ’s Wholesale Club, Inc. (Æ)(Ñ) | 3,700 | 143 | ||
Black & Decker Corp. (Ñ) | 9,600 | 552 | ||
Brinker International, Inc. | 43,900 | 830 | ||
CBS Corp. (Ñ) | 65,900 | 1,284 | ||
CEC Entertainment, Inc. (Æ)(Ñ) | 900 | 25 | ||
Clear Channel Outdoor Holdings, Inc. Class A (Æ) | 82,507 | 1,471 | ||
Coach, Inc. (Æ) | 15,300 | 442 | ||
Costco Wholesale Corp. (Ñ) | 17,500 | 1,227 | ||
DIRECTV Group, Inc. (The) (Æ) | 26,200 | 679 | ||
Discovery Holding Co. Class A (Æ) | 57,775 | 1,269 | ||
eBay, Inc. (Æ)(Ñ) | 76,955 | 2,103 | ||
Electronic Arts, Inc. Series C (Æ) | 37,700 | 1,675 | ||
Estee Lauder Cos., Inc. (The) Class A (Ñ) | 8,540 | 397 | ||
Foot Locker, Inc. | 51,200 | 637 | ||
GameStop Corp. Class A (Æ)(Ñ) | 2,950 | 119 | ||
Gap, Inc. (The) (Ñ) | 8,700 | 145 | ||
Google, Inc. Class A (Æ) | 14,160 | 7,454 | ||
Guess ?, Inc. (Ñ) | 29,480 | 1,104 | ||
Home Depot, Inc. | 32,000 | 749 | ||
Intercontinental Hotels Group PLC - ADR (Ñ) | 30,759 | 410 | ||
International Game Technology (Ñ) | 28,300 | 707 | ||
International Speedway Corp. Class A | 2,500 | 98 | ||
JC Penney Co., Inc. (Ñ) | 22,900 | 831 | ||
Jones Apparel Group, Inc. (Ñ) | 29,500 | 406 | ||
Kimberly-Clark Corp. | 14,800 | 885 |
Principal Amount ($) or Shares | Market Value $ | |||
Kohl’s Corp. (Æ)(Ñ) | 9,790 | 392 | ||
Leggett & Platt, Inc. (Ñ) | 11,700 | 196 | ||
Limited Brands, Inc. (Ñ) | 52,400 | 883 | ||
Lowe’s Cos., Inc. (Ñ) | 21,760 | 452 | ||
Macy’s, Inc. | 41,400 | 804 | ||
Manpower, Inc. (Ñ) | 1,900 | 111 | ||
McDonald’s Corp. | 101,098 | 5,684 | ||
McGraw-Hill Cos., Inc. (The) (Ñ) | 11,500 | 461 | ||
Mohawk Industries, Inc. (Æ)(Ñ) | 3,900 | 250 | ||
Newell Rubbermaid, Inc. | 22,200 | 373 | ||
News Corp. Class A | 109,850 | 1,652 | ||
Nike, Inc. Class B (Ñ) | 47,771 | 2,848 | ||
Office Depot, Inc. (Æ)(Ñ) | 16,400 | 179 | ||
OfficeMax, Inc. (Ñ) | 50,200 | 698 | ||
priceline.com, Inc. (Æ)(Ñ) | 3,910 | 451 | ||
RR Donnelley & Sons Co. | 18,700 | 555 | ||
Staples, Inc. (Ñ) | 35,240 | 837 | ||
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö) | 17,500 | 701 | ||
Target Corp. (Ñ) | 31,800 | 1,478 | ||
Time Warner, Inc. | 27,500 | 407 | ||
TJX Cos., Inc. | 11,200 | 353 | ||
VeriSign, Inc. (Æ)(Ñ) | 12,120 | 458 | ||
Viacom, Inc. Class B (Æ) | 56,200 | 1,716 | ||
Wal-Mart Stores, Inc. | 121,400 | 6,823 | ||
Watson Wyatt Worldwide, Inc. Class A (Ñ) | 1,100 | 58 | ||
WESCO International, Inc. (Æ) | 1,600 | 64 | ||
Whirlpool Corp. (Ñ) | 12,300 | 759 | ||
Williams-Sonoma, Inc. (Ñ) | 34,000 | 675 | ||
58,058 | ||||
Consumer Staples - 6.2% | ||||
Campbell Soup Co. | 24,800 | 830 | ||
Clorox Co. | 19,000 | 992 | ||
Coca-Cola Co. (The) | 131,480 | 6,834 | ||
Colgate-Palmolive Co. | 19,100 | 1,320 | ||
Fomento Economico Mexicano SAB de CV - ADR | 34,080 | 1,551 | ||
General Mills, Inc. | 19,000 | 1,155 | ||
Hershey Co. (The) (Ñ) | 24,700 | 810 | ||
Hormel Foods Corp. (Ñ) | 4,600 | 159 | ||
Kraft Foods, Inc. Class A | 35,100 | 999 | ||
Molson Coors Brewing Co. Class B (Ñ) | 26,130 | 1,420 | ||
Pepsi Bottling Group, Inc. | 11,000 | 307 | ||
PepsiCo, Inc. | 63,050 | 4,009 | ||
Procter & Gamble Co. | 85,100 | 5,175 | ||
SUPERVALU, Inc. (Ñ) | 9,500 | 293 |
4 | Multi-Style Equity Fund |
Table of Contents
Russell Investment Funds
Multi-Style Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Tyson Foods, Inc. Class A | 16,800 | 251 | ||
Unilever NV | 33,400 | 948 | ||
27,053 | ||||
Financial Services - 13.9% | ||||
ACE, Ltd. | 36,500 | 2,011 | ||
Aflac, Inc. | 1,400 | 88 | ||
Alliance Data Systems Corp. (Æ)(Ñ) | 15,000 | 848 | ||
Allied World Assurance Co. Holdings, Ltd. (Ñ) | 2,900 | 115 | ||
American International Group, Inc. | 35,500 | 939 | ||
AmeriCredit Corp. (Æ)(Ñ) | 8,300 | 72 | ||
Annaly Capital Management, Inc. (ö) | 35,400 | 549 | ||
Arch Capital Group, Ltd. (Æ) | 4,900 | 325 | ||
Axis Capital Holdings, Ltd. (Ñ) | 9,300 | 277 | ||
Bank of America Corp. | 20,400 | 487 | ||
Bank of New York Mellon Corp. (The) | 69,426 | 2,626 | ||
BlackRock, Inc. Class A (Ñ) | 3,030 | 536 | ||
Brandywine Realty Trust (ö) | 7,700 | 121 | ||
Capital One Financial Corp. (Ñ) | 45,750 | 1,739 | ||
Cash America International, Inc. | 2,100 | 65 | ||
Charles Schwab Corp. (The) | 55,800 | 1,146 | ||
Chubb Corp. (Ñ) | 27,600 | 1,353 | ||
Citigroup, Inc. | 93,600 | 1,569 | ||
City National Corp. (Ñ) | 800 | 34 | ||
CNA Financial Corp. (Ñ) | 3,100 | 78 | ||
Colonial BancGroup, Inc. (The) (Ñ) | 42,700 | 189 | ||
Colonial Properties Trust (ö)(Ñ) | 5,300 | 106 | ||
Comerica, Inc. (Ñ) | 11,800 | 302 | ||
Discover Financial Services (Ñ) | 28,900 | 381 | ||
Duke Realty Corp. (ö) | 13,500 | 303 | ||
EastGroup Properties, Inc. (ö) | 1,600 | 69 | ||
Everest Re Group, Ltd. | 4,100 | 327 | ||
Federal National Mortgage Association (Ñ) | 55,500 | 1,083 | ||
Fifth Third Bancorp (Ñ) | 13,400 | 136 | ||
Fiserv, Inc. (Æ)(Ñ) | 14,390 | 653 | ||
Freddie Mac | 24,100 | 395 | ||
Genworth Financial, Inc. Class A | 11,200 | 199 | ||
Goldman Sachs Group, Inc. (The) (Ñ) | 24,030 | 4,203 | ||
H&R Block, Inc. | 21,000 | 449 | ||
Hartford Financial Services Group, Inc. | 25,700 | 1,659 | ||
HCC Insurance Holdings, Inc. | 8,600 | 182 | ||
Hospitality Properties Trust (ö)(Ñ) | 12,100 | 296 | ||
Host Hotels & Resorts, Inc. (ö)(Ñ) | 82,500 | 1,126 | ||
Huntington Bancshares, Inc. (Ñ) | 29,000 | 167 | ||
Jefferies Group, Inc. (Ñ) | 56,200 | 945 |
Principal Amount ($) or Shares | Market Value $ | |||
JPMorgan Chase & Co. (Ñ) | 155,200 | 5,325 | ||
Keycorp (Ñ) | 55,800 | 613 | ||
Liberty Property Trust (ö)(Ñ) | 4,500 | 149 | ||
Lincoln National Corp. | 20,600 | 934 | ||
M&T Bank Corp. | 15,500 | 1,093 | ||
Marshall & Ilsley Corp. (Ñ) | 15,300 | 235 | ||
Mastercard, Inc. Class A (Ñ) | 7,570 | 2,010 | ||
Mercury General Corp. (Ñ) | 19,800 | 925 | ||
Merrill Lynch & Co., Inc. | 23,400 | 742 | ||
MetLife, Inc. | 9,500 | 501 | ||
Morgan Stanley | 102,150 | 3,685 | ||
Nasdaq OMX Group (The) (Æ)(Ñ) | 3,300 | 88 | ||
Northern Trust Corp. (Ñ) | 6,700 | 459 | ||
Pacific Capital Bancorp NA (Ñ) | 2,800 | 39 | ||
Paychex, Inc. | 14,600 | 457 | ||
Pennsylvania Real Estate Investment Trust (ö)(Ñ) | 4,500 | 104 | ||
PNC Financial Services Group, Inc. | 5,600 | 320 | ||
Prologis (ö)(Ñ) | 5,500 | 299 | ||
Prosperity Bancshares, Inc. (Ñ) | 4,100 | 110 | ||
Protective Life Corp. | 17,900 | 681 | ||
Prudential Financial, Inc. | 16,300 | 974 | ||
Regions Financial Corp. (Ñ) | 29,200 | 319 | ||
RenaissanceRe Holdings, Ltd. | 4,600 | 205 | ||
StanCorp Financial Group, Inc. (Ñ) | 3,600 | 169 | ||
State Street Corp. | 12,232 | 783 | ||
Sunstone Hotel Investors, Inc. (ö)(Ñ) | 4,000 | 66 | ||
SunTrust Banks, Inc. (Ñ) | 35,550 | 1,288 | ||
T Rowe Price Group, Inc. (Ñ) | 11,740 | 663 | ||
Transatlantic Holdings, Inc. (Ñ) | 500 | 28 | ||
Travelers Cos., Inc. (The) | 38,100 | 1,654 | ||
UnionBanCal Corp. (Ñ) | 7,700 | 311 | ||
United Rentals, Inc. (Æ)(Ñ) | 6,600 | 129 | ||
Unum Group | 17,600 | 360 | ||
Visa, Inc. | 9,614 | 782 | ||
Wells Fargo & Co. (Ñ) | 122,350 | 2,906 | ||
Western Union Co. (The) (Ñ) | 33,800 | 836 | ||
Wilmington Trust Corp. (Ñ) | 29,400 | 777 | ||
WR Berkley Corp. (Ñ) | 14,400 | 348 | ||
XL Capital, Ltd. Class A (Ñ) | 13,200 | 271 | ||
Zions Bancorporation (Ñ) | 7,700 | 242 | ||
60,028 | ||||
Health Care - 12.8% | ||||
Abbott Laboratories | 47,700 | 2,527 | ||
Alcon, Inc. | 6,500 | 1,058 | ||
Alexion Pharmaceuticals, Inc. (Æ)(Ñ) | 5,720 | 415 | ||
Allergan, Inc. | 35,110 | 1,827 |
Multi-Style Equity Fund | 5 |
Table of Contents
Russell Investment Funds
Multi-Style Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
AMERIGROUP Corp. Class A (Æ) | 7,200 | 150 | ||
AmerisourceBergen Corp. Class A | 5,100 | 204 | ||
Baxter International, Inc. | 31,830 | 2,035 | ||
Bristol-Myers Squibb Co. | 42,900 | 881 | ||
Celgene Corp. (Æ) | 14,300 | 913 | ||
Charles River Laboratories International, Inc. (Æ)(Ñ) | 7,670 | 490 | ||
Cooper Cos., Inc. (The) (Ñ) | 15,000 | 557 | ||
CVS Caremark Corp. | 141,880 | 5,614 | ||
Dentsply International, Inc. (Ñ) | 12,840 | 473 | ||
Eli Lilly & Co. | 21,400 | 988 | ||
Express Scripts, Inc. Class A (Æ) | 13,900 | 872 | ||
Genzyme Corp. (Æ) | 17,090 | 1,231 | ||
Gilead Sciences, Inc. (Æ) | 111,540 | 5,906 | ||
Health Management Associates, Inc. Class A (Æ)(Ñ) | 17,200 | 112 | ||
Health Net, Inc. (Æ) | 7,400 | 178 | ||
Human Genome Sciences, Inc. (Æ)(Ñ) | 68,600 | 357 | ||
Humana, Inc. (Æ) | 5,200 | 207 | ||
Intuitive Surgical, Inc. (Æ)(Ñ) | 6,590 | 1,775 | ||
Johnson & Johnson | 56,700 | 3,648 | ||
Kindred Healthcare, Inc. (Æ) | 900 | 26 | ||
King Pharmaceuticals, Inc. (Æ) | 16,400 | 172 | ||
Laboratory Corp. of America Holdings (Æ) | 2,200 | 153 | ||
LifePoint Hospitals, Inc. (Æ)(Ñ) | 4,700 | 133 | ||
McKesson Corp. | 5,000 | 280 | ||
Mylan, Inc. (Æ)(Ñ) | 85,800 | 1,036 | ||
Owens & Minor, Inc. (Ñ) | 1,600 | 73 | ||
Pfizer, Inc. | 38,700 | 676 | ||
Sanofi-Aventis SA - ADR | 16,800 | 558 | ||
Savient Pharmaceuticals, Inc. (Æ)(Ñ) | 25,700 | 650 | ||
Schering-Plough Corp. | 235,100 | 4,629 | ||
St. Jude Medical, Inc. (Æ) | 14,528 | 594 | ||
Stericycle, Inc. (Æ) | 8,070 | 417 | ||
Stryker Corp. (Ñ) | 31,700 | 1,993 | ||
Teva Pharmaceutical Industries, | 29,030 | 1,330 | ||
Thermo Fisher Scientific, Inc. (Æ)(Ñ) | 55,090 | 3,070 | ||
Vertex Pharmaceuticals, Inc. (Æ) | 25,700 | 860 | ||
WellPoint, Inc. (Æ) | 10,300 | 491 | ||
Wyeth | 120,300 | 5,770 | ||
55,329 | ||||
Integrated Oils - 5.5% | ||||
BP PLC - ADR | 35,700 | 2,483 | ||
Chevron Corp. | 19,400 | 1,923 | ||
ConocoPhillips | 15,200 | 1,435 | ||
Exxon Mobil Corp. | 47,200 | 4,160 |
Principal Amount ($) or Shares | Market Value $ | |||
Hess Corp. | 14,500 | 1,830 | ||
Marathon Oil Corp. | 88,000 | 4,564 | ||
Occidental Petroleum Corp. (Ñ) | 76,650 | 6,888 | ||
Petroleo Brasileiro SA - ADR | 11,390 | 807 | ||
24,090 | ||||
Materials and Processing - 6.7% | ||||
Agrium, Inc. | 7,000 | 753 | ||
Alcoa, Inc. | 20,900 | 744 | ||
Archer-Daniels-Midland Co. | 14,300 | 483 | ||
Armstrong World Industries, Inc. (Ñ) | 3,300 | 96 | ||
Ashland, Inc. (Ñ) | 22,417 | 1,081 | ||
Avery Dennison Corp. (Ñ) | 12,800 | 562 | ||
Bemis Co., Inc. (Ñ) | 21,200 | 475 | ||
Bunge, Ltd. | 3,400 | 366 | ||
Cabot Corp. (Ñ) | 18,600 | 452 | ||
Celanese Corp. Class A | 12,870 | 588 | ||
Ceradyne, Inc. (Æ)(Ñ) | 900 | 31 | ||
CF Industries Holdings, Inc. (Ñ) | 500 | 76 | ||
Commercial Metals Co. (Ñ) | 3,600 | 136 | ||
Domtar Corp. (Æ)(Ñ) | 10,500 | 57 | ||
EI Du Pont de Nemours & Co. (Ñ) | 63,050 | 2,704 | ||
EMCOR Group, Inc. (Æ) | 2,300 | 66 | ||
Energizer Holdings, Inc. (Æ)(Ñ) | 7,700 | 563 | ||
Fluor Corp. (Ñ) | 11,470 | 2,134 | ||
Freeport-McMoRan Copper & Gold, Inc. Class B (Ñ) | 7,800 | 914 | ||
International Paper Co. (Ñ) | 45,823 | 1,068 | ||
KBR, Inc. (Æ) | 6,700 | 234 | ||
Masco Corp. (Ñ) | 88,500 | 1,392 | ||
MeadWestvaco Corp. (Ñ) | 25,600 | 610 | ||
Monsanto Co. (Ñ) | 28,100 | 3,553 | ||
Mosaic Co. (The) (Æ) | 3,700 | 535 | ||
Nucor Corp. (Ñ) | 14,274 | 1,066 | ||
Owens-Illinois, Inc. (Æ) | 9,290 | 387 | ||
Packaging Corp. of America | 21,600 | 465 | ||
Perini Corp. (Æ)(Ñ) | 1,200 | 40 | ||
Potash Corp. of Saskatchewan | 5,700 | 1,303 | ||
PPG Industries, Inc. (Ñ) | 8,600 | 493 | ||
Precision Castparts Corp. | 10,700 | 1,031 | ||
Rohm & Haas Co. (Ñ) | 23,100 | 1,073 | ||
RPM International, Inc. (Ñ) | 3,200 | 66 | ||
Smurfit-Stone Container Corp. (Æ)(Ñ) | 25,100 | 102 | ||
Sonoco Products Co. | 18,000 | 557 | ||
Steel Dynamics, Inc. (Ñ) | 3,500 | 137 | ||
United States Steel Corp. | 8,900 | 1,645 | ||
URS Corp. (Æ) | 9,600 | 403 | ||
Valspar Corp. (Ñ) | 27,000 | 511 | ||
28,952 | ||||
6 | Multi-Style Equity Fund |
Table of Contents
Russell Investment Funds
Multi-Style Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Miscellaneous - 2.8% | ||||
Brunswick Corp. (Ñ) | 22,300 | 236 | ||
Eaton Corp. | 24,197 | 2,056 | ||
General Electric Co. | 171,294 | 4,572 | ||
Honeywell International, Inc. | 20,500 | 1,031 | ||
Johnson Controls, Inc. | 23,400 | 671 | ||
SPX Corp. | 3,250 | 428 | ||
Teleflex, Inc. | 15,300 | 851 | ||
Textron, Inc. | 43,540 | 2,087 | ||
Tyco International, Ltd. (Ñ) | 9,190 | 368 | ||
12,300 | ||||
Other Energy - 7.9% | ||||
Anadarko Petroleum Corp. | 22,300 | 1,669 | ||
Apache Corp. | 10,000 | 1,390 | ||
Baker Hughes, Inc. (Ñ) | 22,400 | 1,956 | ||
Cabot Oil & Gas Corp. | 15,500 | 1,050 | ||
Cameron International Corp. (Æ) | 48,250 | 2,671 | ||
Chesapeake Energy Corp. (Ñ) | 42,668 | 2,814 | ||
Consol Energy, Inc. (Ñ) | 8,090 | 909 | ||
Devon Energy Corp. | 43,871 | 5,272 | ||
Dynegy, Inc. Class A (Æ)(Ñ) | 52,600 | 450 | ||
Halliburton Co. (Ñ) | 110,500 | 5,864 | ||
Key Energy Services, Inc. (Æ) | 7,100 | 138 | ||
National Oilwell Varco, Inc. (Æ)(Ñ) | 13,000 | 1,153 | ||
Patterson-UTI Energy, Inc. (Ñ) | 9,500 | 342 | ||
Peabody Energy Corp. (Ñ) | 10,100 | 889 | ||
Pioneer Drilling Co. (Æ) | 1,400 | 26 | ||
Pioneer Natural Resources Co. (Ñ) | 11,200 | 877 | ||
Schlumberger, Ltd. | 27,000 | 2,901 | ||
Stone Energy Corp. (Æ) | 600 | 40 | ||
Sunoco, Inc. (Ñ) | 21,600 | 879 | ||
Transocean, Inc. (Æ) | 4,700 | 716 | ||
Valero Energy Corp. | 7,700 | 317 | ||
XTO Energy, Inc. (Ñ) | 25,747 | 1,764 | ||
34,087 | ||||
Producer Durables - 5.0% | ||||
AGCO Corp. (Æ)(Ñ) | 3,000 | 157 | ||
American Tower Corp. Class A (Æ)(Ñ) | 13,000 | 549 | ||
Applied Materials, Inc. (Ñ) | 205,100 | 3,915 | ||
Caterpillar, Inc. (Ñ) | 7,000 | 517 | ||
Deere & Co. (Ñ) | 33,200 | 2,395 | ||
Emerson Electric Co. | 73,600 | 3,639 | ||
Flowserve Corp. | 6,230 | 852 | ||
Gardner Denver, Inc. (Æ) | 3,900 | 221 | ||
Illinois Tool Works, Inc. (Ñ) | 13,000 | 618 | ||
Lam Research Corp. (Æ) | 7,490 | 271 |
Principal Amount ($) or Shares | Market Value $ | |||
Lennar Corp. Class A (Ñ) | 8,600 | 106 | ||
Lexmark International, Inc. Class A (Æ)(Ñ) | 3,100 | 104 | ||
Lockheed Martin Corp. | 26,431 | 2,608 | ||
MDC Holdings, Inc. (Ñ) | 1,300 | 51 | ||
Northrop Grumman Corp. | 18,600 | 1,244 | ||
NVR, Inc. (Æ)(Ñ) | 860 | 430 | ||
Parker Hannifin Corp. | 18,811 | 1,341 | ||
Plantronics, Inc. | 1,200 | 27 | ||
SBA Communications Corp. Class A (Æ)(Ñ) | 8,890 | 320 | ||
Spirit Aerosystems Holdings, Inc. Class A (Æ) | 2,900 | 56 | ||
Steelcase, Inc. Class A (Ñ) | 5,800 | 58 | ||
United Technologies Corp. | 28,700 | 1,771 | ||
Varian Semiconductor Equipment Associates, Inc. (Æ)(Ñ) | 9,100 | 317 | ||
21,567 | ||||
Technology - 14.7% | ||||
Akamai Technologies, Inc. (Æ)(Ñ) | 11,540 | 401 | ||
Altera Corp. | 21,640 | 448 | ||
Amphenol Corp. Class A | 53,393 | 2,396 | ||
Analog Devices, Inc. | 30,597 | 972 | ||
Apple, Inc. (Æ) | 42,820 | 7,170 | ||
Avnet, Inc. (Æ)(Ñ) | 3,000 | 82 | ||
Broadcom Corp. Class A (Æ)(Ñ) | 61,600 | 1,681 | ||
Cisco Systems, Inc. (Æ)(Ñ) | 283,260 | 6,589 | ||
Computer Sciences Corp. (Æ)(Ñ) | 8,800 | 412 | ||
Corning Inc. | 87,380 | 2,014 | ||
Cypress Semiconductor Corp. (Æ)(Ñ) | 22,200 | 549 | ||
EMC Corp./Massachusetts (Æ) | 35,860 | 527 | ||
First Solar, Inc. (Æ)(Ñ) | 5,440 | 1,484 | ||
General Dynamics Corp. (Ñ) | 6,900 | 581 | ||
Hewlett-Packard Co. | 176,950 | 7,823 | ||
Ingram Micro, Inc. Class A (Æ)(Ñ) | 5,200 | 92 | ||
Intel Corp. | 59,100 | 1,269 | ||
International Business Machines Corp. | 14,800 | 1,754 | ||
Jabil Circuit, Inc. (Ñ) | 25,400 | 417 | ||
Juniper Networks, Inc. (Æ)(Ñ) | 53,200 | 1,180 | ||
Linear Technology Corp. | 48,116 | 1,567 | ||
Marvell Technology Group, Ltd. (Æ)(Ñ) | 27,840 | 492 | ||
Maxim Integrated Products, Inc. | 88,300 | 1,868 | ||
MEMC Electronic Materials, Inc. (Æ) | 10,500 | 646 | ||
Microsoft Corp. | 112,000 | 3,081 | ||
Motorola, Inc. | 140,700 | 1,033 | ||
NetApp, Inc. (Æ)(Ñ) | 24,500 | 531 | ||
Nvidia Corp. | 18,100 | 339 |
Multi-Style Equity Fund | 7 |
Table of Contents
Russell Investment Funds
Multi-Style Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Qualcomm, Inc. | 164,460 | 7,297 | ||
Research In Motion, Ltd. (Æ) | 22,395 | 2,618 | ||
Rockwell Automation, Inc. | 15,400 | 673 | ||
Salesforce.com, Inc. (Æ)(Ñ) | 5,970 | 407 | ||
SanDisk Corp. (Æ) | 17,140 | 321 | ||
Seagate Technology (Ñ) | 10,200 | 195 | ||
Seagate Technology, Inc. (Æ) | 2,300 | — | ||
Syniverse Holdings, Inc. (Æ) | 1,600 | 26 | ||
Tellabs, Inc. (Æ)(Ñ) | 14,200 | 66 | ||
Texas Instruments, Inc. | 59,550 | 1,677 | ||
Tyco Electronics, Ltd. | 66,684 | 2,389 | ||
Vishay Intertechnology, Inc. (Æ) | 5,200 | 46 | ||
Xilinx, Inc. (Ñ) | 15,800 | 399 | ||
63,512 | ||||
Utilities - 3.7% | ||||
AGL Resources, Inc. | 16,400 | 567 | ||
American Electric Power Co., Inc. | 11,600 | 467 | ||
Aqua America, Inc. (Ñ) | 36,100 | 577 | ||
AT&T, Inc. | 115,661 | 3,897 | ||
Atmos Energy Corp. | 1,800 | 50 | ||
CenturyTel, Inc. (Ñ) | 11,300 | 402 | ||
Cincinnati Bell, Inc. (Æ) | 12,400 | 49 | ||
Citizens Communications Co. (Ñ) | 73,100 | 829 | ||
Consolidated Edison, Inc. (Ñ) | 10,200 | 399 | ||
DTE Energy Co. (Ñ) | 9,600 | 407 | ||
Duke Energy Corp. (Ñ) | 28,700 | 499 | ||
Edison International | 9,600 | 493 | ||
Embarq Corp. (Ñ) | 9,500 | 449 | ||
MDU Resources Group, Inc. | 1,500 | 52 | ||
Millicom International Cellular SA | 3,940 | 408 | ||
New Jersey Resources Corp. (Ñ) | 3,600 | 118 | ||
Nicor, Inc. (Ñ) | 8,100 | 345 | ||
NiSource, Inc. (Ñ) | 41,000 | 735 | ||
NSTAR (Ñ) | 5,100 | 172 | ||
Pinnacle West Capital Corp. | 9,600 | 295 | ||
Progress Energy, Inc. (Ñ) | 4,100 | 172 | ||
Progress Energy, Inc. - CVO (Æ)(ß) | 1,300 | — | ||
Qwest Communications International, Inc. (Ñ) | 43,800 | 172 | ||
South Jersey Industries, Inc. (Ñ) | 1,900 | 71 | ||
Southwest Gas Corp. | 2,900 | 86 | ||
Verizon Communications, Inc. | 50,000 | 1,770 | ||
Vodafone Group PLC - ADR | 72,550 | 2,137 |
Principal Amount ($) or Shares | Market Value $ | ||||
WGL Holdings, Inc. (Ñ) | 5,500 | 191 | |||
Windstream Corp. (Ñ) | 28,800 | 355 | |||
16,164 | |||||
Total Common Stocks | |||||
(cost $401,545) | 405,963 | ||||
Short-Term Investments - 5.9% | |||||
Russell Investment Company | 23,952,000 | 23,952 | |||
United States Treasury Bills (ž)(§) | |||||
1.915% due 09/18/08 | 1,600 | 1,592 | |||
Total Short-Term Investments | |||||
(cost $25,545) | 25,544 | ||||
Other Securities - 24.3% | |||||
State Street Securities Lending | 105,067,283 | 105,067 | |||
Total Other Securities | |||||
(cost $105,067) | 105,067 | ||||
Total Investments - 123.9% | |||||
(identified cost $532,157) | 536,574 | ||||
Other Assets and Liabilities, Net - (23.9%) | (103,625 | ) | |||
Net Assets - 100.0% | 432,949 | ||||
A portion of the portfolio has been fair valued as of period end.
See accompanying notes which are an integral part of the financial statements.
8 | Multi-Style Equity Fund |
Table of Contents
Russell Investment Funds
Multi-Style Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except contracts)
Futures Contracts (Number of Contracts) | Notional Amount | Unrealized Appreciation (Depreciation) $ | |||||
Long Positions | |||||||
Russell 1000 Index expiration date 09/08 (7) | USD | 1,465 | (117 | ) | |||
Russell 1000 Mini (CME) expiration date 09/08 (2) | USD | 141 | (7 | ) | |||
S&P 500 E-Mini Index (CME) expiration date 09/08 (92) | USD | 5,893 | (242 | ) | |||
S&P 500 Index (CME) expiration date 09/08 (21) | USD | 6,726 | (317 | ) | |||
S&P Midcap 400 E-Mini Index (CME) expiration date 09/08 (130) | USD | 10,676 | (433 | ) | |||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | (1,116 | ) | |||||
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Portfolio Summary | % of Net Assets | ||
Auto and Transportation | 1.1 | ||
Consumer Discretionary | 13.4 | ||
Consumer Staples | 6.2 | ||
Financial Services | 13.9 | ||
Health Care | 12.8 | ||
Integrated Oils | 5.5 | ||
Materials and Processing | 6.7 | ||
Miscellaneous | 2.8 | ||
Other Energy | 7.9 | ||
Producer Durables | 5.0 | ||
Technology | 14.7 | ||
Utilities | 3.7 | ||
Short-Term Investments | 5.9 | ||
Other Securities | 24.3 | ||
Total Investments | 123.9 | ||
Other Assets and Liabilities, Net | (23.9 | ) | |
100.0 | |||
Futures Contracts | (0.3 | ) |
See accompanying notes which are an integral part of the financial statements.
Multi-Style Equity Fund | 9 |
Table of Contents
Aggressive Equity Fund
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value | ||||||
January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
June 30, 2008 | $ | 897.10 | $ | 1,019.64 | ||
Expenses Paid During Period* | $ | 4.95 | $ | 5.27 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.05% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
10 | Aggressive Equity Fund |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Common Stocks - 95.5% | ||||
Auto and Transportation - 3.7% | ||||
Accuride Corp. (Æ)(Ñ) | 248 | 1 | ||
Air Transport Services Group, Inc. (Æ)(Ñ) | 4,700 | 5 | ||
Alaska Air Group, Inc. (Æ)(Ñ) | 3,000 | 46 | ||
American Axle & Manufacturing Holdings, Inc. (Ñ) | 110 | 1 | ||
American Railcar Industries, Inc. | 26 | — | ||
Arkansas Best Corp. (Ñ) | 8,922 | 327 | ||
Autoliv, Inc. (Ñ) | 7,776 | 362 | ||
BorgWarner, Inc. (Ñ) | 10,018 | 444 | ||
Commercial Vehicle Group, Inc. (Æ) | 5,700 | 53 | ||
Cooper Tire & Rubber Co. (Ñ) | 33,600 | 263 | ||
Dana Corp. (Æ)(ß) | 47,300 | — | ||
Eagle Bulk Shipping, Inc. (Ñ) | 7,280 | 215 | ||
Expeditors International of Washington, Inc. (Ñ) | 5,443 | 234 | ||
ExpressJet Holdings, Inc. Class A (Æ)(Ñ) | 5,300 | 3 | ||
FreightCar America, Inc. (Ñ) | 1,200 | 43 | ||
Genco Shipping & Trading, Ltd. (Ñ) | 5,795 | 378 | ||
General Maritime Corp. | 6,300 | 164 | ||
HUB Group, Inc. Class A (Æ) | 5,535 | 189 | ||
Kansas City Southern (Æ) | 5,550 | 244 | ||
Kirby Corp. (Æ)(Ñ) | 14,584 | 700 | ||
Lear Corp. (Æ)(Ñ) | 10,200 | 145 | ||
Marten Transport, Ltd. (Æ) | 2,500 | 40 | ||
Monaco Coach Corp. (Ñ) | 20,700 | 63 | ||
Oshkosh Corp. (Ñ) | 165 | 3 | ||
Overseas Shipholding Group, Inc. (Ñ) | 3,700 | 294 | ||
Pacer International, Inc. (Ñ) | 10,442 | 225 | ||
PHI, Inc. (Æ)(Ñ) | 7,360 | 296 | ||
Polaris Industries, Inc. (Ñ) | 3,462 | 140 | ||
Republic Airways Holdings, Inc. (Æ)(Ñ) | 3,900 | 34 | ||
Saia, Inc. (Æ) | 2,300 | 25 | ||
Skywest, Inc. (Ñ) | 10,007 | 126 | ||
Spartan Motors, Inc. (Ñ) | 2,800 | 21 | ||
Standard Motor Products, Inc. (Ñ) | 97 | 1 | ||
Star Bulk Carriers Corp. | 16,100 | 190 | ||
Stoneridge, Inc. (Æ)(Ñ) | 1,600 | 27 | ||
Strattec Security Corp. | 7,970 | 281 | ||
Superior Industries International, Inc. (Ñ) | 12,240 | 207 | ||
TBS International, Ltd. Class A (Æ)(Ñ) | 600 | 24 | ||
Thor Industries, Inc. (Ñ) | 4,833 | 103 |
Principal Amount ($) or Shares | Market Value $ | |||
TRW Automotive Holdings Corp. (Æ)(Ñ) | 11,200 | 207 | ||
Ultrapetrol Bahamas, Ltd. (Æ)(Ñ) | 1,800 | 23 | ||
UTi Worldwide, Inc. | 11,989 | 239 | ||
Visteon Corp. (Æ)(Ñ) | 21,000 | 55 | ||
Wabash National Corp. (Ñ) | 2,851 | 21 | ||
WABCO Holdings, Inc. (Ñ) | 5,800 | 269 | ||
Wabtec Corp. (Ñ) | 16,058 | 781 | ||
Werner Enterprises, Inc. (Ñ) | 5,701 | 106 | ||
7,618 | ||||
Consumer Discretionary - 14.5% | ||||
4Kids Entertainment, Inc. (Æ)(Ñ) | 55,840 | 414 | ||
99 Cents Only Stores (Æ)(Ñ) | 55,027 | 363 | ||
Aaron Rents, Inc. | 1,837 | 41 | ||
Activision, Inc. (Æ) | 39,768 | 1,355 | ||
Administaff, Inc. (Ñ) | 842 | 23 | ||
Advance Auto Parts, Inc. (Ñ) | 9,311 | 362 | ||
Advisory Board Co. (The) (Æ)(Ñ) | 2,142 | 84 | ||
Aeropostale, Inc. (Æ)(Ñ) | 7,900 | 247 | ||
Allied Waste Industries, Inc. (Æ) | 3,216 | 41 | ||
Ameristar Casinos, Inc. (Ñ) | 25,700 | 355 | ||
AnnTaylor Stores Corp. (Æ)(Ñ) | 5,336 | 128 | ||
Apollo Group, Inc. Class A (Æ) | 4,882 | 216 | ||
Asbury Automotive Group, Inc. (Ñ) | 7,300 | 94 | ||
AutoNation, Inc. (Æ)(Ñ) | 19,000 | 190 | ||
Bally Technologies, Inc. (Æ)(Ñ) | 4,600 | 155 | ||
Barnes & Noble, Inc. (Ñ) | 3,700 | 92 | ||
Big Lots, Inc. (Æ)(Ñ) | 5,562 | 174 | ||
BJ’s Wholesale Club, Inc. (Æ)(Ñ) | 5,179 | 200 | ||
Black & Decker Corp. (Ñ) | 2,370 | 136 | ||
Blockbuster, Inc. Class A (Æ)(Ñ) | 34,500 | 86 | ||
Blyth, Inc. (Ñ) | 6,689 | 80 | ||
Books-A-Million, Inc. Class A (Ñ) | 231 | 2 | ||
Brightpoint, Inc. (Æ)(Ñ) | 9,574 | 70 | ||
Brink’s Co. (The) | 1,271 | 83 | ||
Brown Shoe Co., Inc. (Ñ) | 21,000 | 285 | ||
Build-A-Bear Workshop, Inc. Class A (Æ)(Ñ) | 3,900 | 28 | ||
Callaway Golf Co. (Ñ) | 861 | 10 | ||
Capella Education Co. (Æ)(Ñ) | 3,920 | 234 | ||
Career Education Corp. (Æ)(Ñ) | 9,981 | 146 | ||
CDI Corp. (Ñ) | 2,100 | 53 | ||
Central European Distribution Corp. (Æ) | 7,320 | 543 | ||
Central European Media Enterprises, Ltd. Class A (Æ)(Ñ) | 4,327 | 392 |
Aggressive Equity Fund | 11 |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Charming Shoppes, Inc. (Æ)(Ñ) | 2,417 | 11 | ||
Cheesecake Factory (The) (Æ)(Ñ) | 8,908 | 142 | ||
Chemed Corp. (Ñ) | 125 | 5 | ||
Churchill Downs, Inc. (Ñ) | 5,000 | 174 | ||
Cinemark Holdings, Inc. (Ñ) | 5,400 | 71 | ||
Cintas Corp. | 3,869 | 103 | ||
CKE Restaurants, Inc. (Ñ) | 23,900 | 298 | ||
Columbia Sportswear Co. (Ñ) | 3,300 | 121 | ||
Convergys Corp. (Æ)(Ñ) | 17,100 | 254 | ||
Corrections Corp. of America (Æ) | 27,200 | 747 | ||
Cox Radio, Inc. Class A (Æ)(Ñ) | 2,500 | 29 | ||
CRA International, Inc. (Æ) | 411 | 15 | ||
Cross Country Healthcare, Inc. (Æ) | 63 | 1 | ||
CSS Industries, Inc. (Ñ) | 2,000 | 48 | ||
Deckers Outdoor Corp. (Æ)(Ñ) | 1,188 | 165 | ||
DeVry, Inc. (Ñ) | 11,043 | 592 | ||
Dollar Tree, Inc. (Æ) | 7,500 | 245 | ||
DreamWorks Animation SKG, Inc. Class A (Æ)(Ñ) | 4,763 | 142 | ||
Earthlink, Inc. (Æ)(Ñ) | 39,600 | 343 | ||
Entercom Communications Corp. Class A (Ñ) | 4,400 | 31 | ||
Ethan Allen Interiors, Inc. (Ñ) | 2,223 | 55 | ||
Family Dollar Stores, Inc. (Ñ) | 213 | 4 | ||
Finish Line Class A (Æ)(Ñ) | 38,300 | 333 | ||
Focus Media Holding, Ltd. - ADR (Æ)(Ñ) | 24,443 | 678 | ||
Foot Locker, Inc. (Ñ) | 4,316 | 54 | ||
Fred’s, Inc. Class A (Ñ) | 4,100 | 46 | ||
FTD Group, Inc. (Ñ) | 17,976 | 240 | ||
Furniture Brands International, Inc. (Ñ) | 43,968 | 587 | ||
GameStop Corp. Class A (Æ)(Ñ) | 9,388 | 379 | ||
Geo Group, Inc. (The) (Æ)(Ñ) | 15,518 | 349 | ||
Gray Television, Inc. (Ñ) | 50,100 | 144 | ||
Group 1 Automotive, Inc. (Ñ) | 3,600 | 72 | ||
Guess ?, Inc. (Ñ) | 5,958 | 223 | ||
Harte-Hanks, Inc. (Ñ) | 687 | 8 | ||
Hasbro, Inc. (Ñ) | 15,220 | 544 | ||
Haverty Furniture Cos., Inc. (Ñ) | 1,900 | 19 | ||
Heidrick & Struggles International, Inc. (Ñ) | 3,761 | 104 | ||
Helen of Troy, Ltd. (Æ)(Ñ) | 20,700 | 334 | ||
Hewitt Associates, Inc. Class A (Æ) | 14,251 | 546 | ||
Hibbett Sports, Inc. (Æ)(Ñ) | 1,713 | 36 | ||
Hooker Furniture Corp. (Ñ) | 1,300 | 23 | ||
HOT Topic, Inc. (Æ)(Ñ) | 8,300 | 45 | ||
Houston Wire & Cable Co. (Ñ) | 1,057 | 21 |
Principal Amount ($) or Shares | Market Value $ | |||
ICF International, Inc. (Æ) | 5,900 | 98 | ||
Idearc, Inc. (Ñ) | 38,300 | 90 | ||
IKON Office Solutions, Inc. (Ñ) | 2,197 | 25 | ||
Infospace, Inc. | 434 | 4 | ||
Insight Enterprises, Inc. (Æ) | 6,800 | 80 | ||
International Speedway Corp. Class A | 4,600 | 180 | ||
inVentiv Health, Inc. (Æ)(Ñ) | 16,230 | 451 | ||
ITT Educational Services, Inc. (Æ)(Ñ) | 9,402 | 777 | ||
Jo-Ann Stores, Inc. (Æ)(Ñ) | 1,000 | 23 | ||
Journal Communications, Inc. Class A (Ñ) | 8,000 | 39 | ||
Kelly Services, Inc. Class A (Ñ) | 4,400 | 85 | ||
Kenneth Cole Productions, Inc. Class A (Ñ) | 14,579 | 185 | ||
Kforce, Inc. (Æ) | 400 | 3 | ||
La-Z-Boy, Inc. (Ñ) | 7,000 | 54 | ||
Lakeland Industries, Inc. (Æ) | 20,410 | 259 | ||
LECG Corp. (Æ)(Ñ) | 102 | 1 | ||
Leggett & Platt, Inc. (Ñ) | 44 | 1 | ||
LIN TV Corp. Class A (Æ)(Ñ) | 5,600 | 33 | ||
Lithia Motors, Inc. Class A (Ñ) | 3,500 | 17 | ||
Liz Claiborne, Inc. (Ñ) | 12,300 | 174 | ||
LKQ Corp. (Æ)(Ñ) | 20,435 | 369 | ||
LS Starrett Co. | 4,234 | 100 | ||
Maidenform Brands, Inc. (Æ)(Ñ) | 1,551 | 21 | ||
Manpower, Inc. | 2,235 | 130 | ||
Marcus Corp. (Ñ) | 1,700 | 25 | ||
MAXIMUS, Inc. | 646 | 22 | ||
Media General, Inc. Class A (Ñ) | 10,671 | 128 | ||
Men’s Wearhouse, Inc. (Ñ) | 13,400 | 218 | ||
Meredith Corp. (Ñ) | 3,082 | 87 | ||
Morton’s Restaurant Group, Inc. (Æ)(��) | 900 | 6 | ||
Movado Group, Inc. (Ñ) | 4,500 | 89 | ||
MSC Industrial Direct Co. Class A (Ñ) | 3,400 | 150 | ||
MWI Veterinary Supply, Inc. (Æ)(Ñ) | 100 | 3 | ||
Navigant Consulting, Inc. (Æ)(Ñ) | 11,466 | 224 | ||
Net 1 UEPS Technologies, Inc. (Æ) | 2,901 | 70 | ||
New York & Co., Inc. (Æ) | 4,800 | 44 | ||
Nu Skin Enterprises, Inc. Class A (Ñ) | 4,300 | 64 | ||
NutriSystem, Inc. (Ñ) | 3,101 | 44 | ||
O’Charleys, Inc. (Ñ) | 14,999 | 151 | ||
Office Depot, Inc. (Æ) | 27,300 | 299 | ||
On Assignment, Inc. (Æ) | 18,700 | 150 | ||
Pantry, Inc. (The) (Æ)(Ñ) | 4,400 | 47 | ||
Parlux Fragrances, Inc. (Æ)(Ñ) | 83,738 | 419 | ||
PC Connection, Inc. (Æ)(Ñ) | 2,800 | 26 | ||
Perry Ellis International, Inc. (Æ)(Ñ) | 2,000 | 42 |
12 | Aggressive Equity Fund |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Phillips-Van Heusen Corp. | 4,261 | 156 | ||
Playboy Enterprises, Inc. Class B (Æ)(Ñ) | 3,246 | 16 | ||
Pool Corp. (Ñ) | 10,900 | 194 | ||
Prestige Brands Holdings, Inc. (Æ)(Ñ) | 26,989 | 288 | ||
priceline.com, Inc. (Æ)(Ñ) | 2,294 | 265 | ||
RadioShack Corp. | 8,939 | 110 | ||
Red Lion Hotels Corp. (Æ) | 18,380 | 146 | ||
Rent-A-Center, Inc. Class A (Æ) | 9,678 | 199 | ||
Republic Services, Inc. Class A | 16,978 | 504 | ||
Revlon, Inc. Class A (Æ)(Ñ) | 11,100 | 9 | ||
Ross Stores, Inc. (Ñ) | 10,299 | 366 | ||
Rush Enterprises, Inc. Class A (Æ)(Ñ) | 6,412 | 77 | ||
Rush Enterprises, Inc. Class B (Æ) | 122 | 1 | ||
Sally Beauty Holdings, Inc. (Æ)(Ñ) | 241 | 2 | ||
Scholastic Corp. (Æ)(Ñ) | 10,123 | 290 | ||
School Specialty, Inc. (Æ)(Ñ) | 643 | 19 | ||
Sealy Corp. (Æ)(Ñ) | 3,000 | 17 | ||
Sinclair Broadcast Group, Inc. Class A (Ñ) | 30,900 | 235 | ||
Skechers U.S.A., Inc. Class A (Æ) | 5,312 | 105 | ||
Sohu.com, Inc. (Æ)(Ñ) | 719 | 51 | ||
Sonic Automotive, Inc. Class A (Ñ) | 16,500 | 213 | ||
Speedway Motorsports, Inc. (Ñ) | 2,500 | 51 | ||
Stanley Furniture Co., Inc. (Ñ) | 1,200 | 13 | ||
Stein Mart, Inc. (Ñ) | 3,700 | 17 | ||
Steven Madden, Ltd. (Æ) | 1,200 | 22 | ||
Strayer Education, Inc. (Ñ) | 1,200 | 251 | ||
Talbots, Inc. (Ñ) | 6,458 | 75 | ||
Tech Data Corp. (Æ)(Ñ) | 9,494 | 322 | ||
Tempur-Pedic International, Inc. (Ñ) | 5,300 | 41 | ||
Toro Co. (Ñ) | 548 | 18 | ||
Tractor Supply Co. (Æ)(Ñ) | 1,785 | 52 | ||
True Religion Apparel, Inc. (Æ)(Ñ) | 5,000 | 133 | ||
Tuesday Morning Corp. (Æ) | 7,200 | 30 | ||
Tween Brands, Inc. (Æ)(Ñ) | 3,283 | 54 | ||
Unifirst Corp. (Ñ) | 800 | 36 | ||
United Online, Inc. (Ñ) | 62,400 | 626 | ||
Urban Outfitters, Inc. (Æ)(Ñ) | 26,110 | 814 | ||
VeriSign, Inc. (Æ)(Ñ) | 13,199 | 499 | ||
Viad Corp. (Ñ) | 100 | 3 | ||
Volt Information Sciences, Inc. (Æ)(Ñ) | 2,200 | 26 | ||
Warnaco Group, Inc. (The) (Æ)(Ñ) | 10,830 | 477 | ||
Warner Music Group Corp. (Ñ) | 4 | — | ||
Waste Connections, Inc. (Æ) | 13,574 | 433 | ||
Waste Services, Inc. (Æ)(Ñ) | 102 | 1 | ||
Watson Wyatt Worldwide, Inc. Class A (Ñ) | 11,245 | 595 |
Principal Amount ($) or Shares | Market Value $ | |||
Weight Watchers International, Inc. | 507 | 18 | ||
WESCO International, Inc. (Æ)(Ñ) | 5,408 | 217 | ||
Wet Seal, Inc. (The) Class A (Æ)(Ñ) | 53,100 | 253 | ||
WMS Industries, Inc. (Æ)(Ñ) | 3,806 | 113 | ||
Wolverine World Wide, Inc. (Ñ) | 12,700 | 339 | ||
29,362 | ||||
Consumer Staples - 2.1% | ||||
B&G Foods, Inc. Class A (Ñ) | 7,740 | 72 | ||
Casey’s General Stores, Inc. (Ñ) | 2,798 | 65 | ||
Chiquita Brands International, Inc. (Æ)(Ñ) | 22,583 | 343 | ||
Church & Dwight Co., Inc. (Ñ) | 3,074 | 173 | ||
Constellation Brands, Inc. Class A (Æ)(Ñ) | 5,673 | 113 | ||
Del Monte Foods Co. (Ñ) | 32,731 | 232 | ||
Diamond Foods, Inc. (Ñ) | 4,469 | 103 | ||
Fresh Del Monte Produce, Inc. (Æ)(Ñ) | 24,900 | 587 | ||
Green Mountain Coffee Roasters, Inc. (Æ)(Ñ) | 7,250 | 272 | ||
Hormel Foods Corp. (Ñ) | 2,811 | 97 | ||
J&J Snack Foods Corp. (Ñ) | 9,500 | 260 | ||
JM Smucker Co. (The) | 654 | 27 | ||
Molson Coors Brewing Co. Class B (Ñ) | 8,900 | 484 | ||
Monterey Gourmet Foods, Inc. (Æ) | 125,695 | 254 | ||
Nash Finch Co. (Ñ) | 1,194 | 41 | ||
NBTY, Inc. (Æ) | 5,709 | 183 | ||
Pilgrim’s Pride Corp. (Ñ) | 2,404 | 31 | ||
Ralcorp Holdings, Inc. (Æ)(Ñ) | 78 | 4 | ||
Renesola, Ltd. - ADR (Æ) | 9,700 | 168 | ||
Sadia SA - ADR (Æ) | 5,400 | 115 | ||
Schweitzer-Mauduit International, Inc. (Ñ) | 3,787 | 64 | ||
SUPERVALU, Inc. (Ñ) | 2,450 | 76 | ||
Tootsie Roll Industries, Inc. (Ñ) | 2,434 | 61 | ||
TreeHouse Foods, Inc. (Æ) | 5,100 | 124 | ||
Weis Markets, Inc. (Ñ) | 10,270 | 333 | ||
4,282 | ||||
Financial Services - 13.8% | ||||
Advance America Cash Advance Centers, Inc. (Ñ) | 8,872 | 45 | ||
Advent Software, Inc. (Æ)(Ñ) | 1,642 | 59 | ||
Affiliated Managers Group, Inc. (Æ)(Ñ) | 5,032 | 453 | ||
Alexander’s, Inc. (Æ)(ö)(Ñ) | 9 | 3 | ||
Alexandria Real Estate Equities, Inc. (ö)(Ñ) | 604 | 59 | ||
Alliance Data Systems Corp. (Æ)(Ñ) | 8,720 | 493 |
Aggressive Equity Fund | 13 |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Allied Capital Corp. (Ñ) | 18,070 | 251 | ||
Allied World Assurance Co. Holdings, Ltd. | 5,400 | 214 | ||
AMB Property Corp. (ö)(Ñ) | 978 | 49 | ||
American Campus Communities, Inc. (ö) | 662 | 18 | ||
American Capital Agency Corp. | 600 | 10 | ||
American Equity Investment Life Holding Co. | 6,600 | 54 | ||
American Financial Group, Inc. (Ñ) | 9,019 | 241 | ||
AmeriCredit Corp. (Æ)(Ñ) | 24,000 | 207 | ||
Amerisafe, Inc. (Æ) | 3,600 | 57 | ||
Amtrust Financial Services, Inc. (Ñ) | 8,360 | 105 | ||
Anchor Bancorp Wisconsin, Inc. (Ñ) | 2,500 | 18 | ||
Annaly Capital Management, Inc. (ö) | 24,468 | 379 | ||
Anthracite Capital, Inc. (ö)(Ñ) | 19,700 | 139 | ||
Anworth Mortgage Asset Corp. (ö) | 55,600 | 362 | ||
Apartment Investment & Management Co. Class A (ö)(Ñ) | 4,400 | 150 | ||
Arch Capital Group, Ltd. (Æ) | 9,200 | 610 | ||
Arthur J Gallagher & Co. (Ñ) | 8,500 | 205 | ||
Ashford Hospitality Trust, Inc. (ö)(Ñ) | 23,700 | 109 | ||
Aspen Insurance Holdings, Ltd. | 10,900 | 258 | ||
Asset Acceptance Capital Corp. (Ñ) | 2,400 | 29 | ||
Assurant, Inc. | 2,540 | 168 | ||
Asta Funding, Inc. | 2,500 | 23 | ||
Astoria Financial Corp. (Ñ) | 2,100 | 42 | ||
Axis Capital Holdings, Ltd. | 5,500 | 164 | ||
Bancfirst Corp. (Ñ) | 1,000 | 43 | ||
Banco Latinoamericano de Exportaciones SA Class E (Ñ) | 4,800 | 78 | ||
Bancorp, Inc. (Æ)(Ñ) | 4,617 | 35 | ||
Bancorpsouth, Inc. (Ñ) | 10,221 | 179 | ||
Bank of Hawaii Corp. (Ñ) | 6,367 | 304 | ||
Bank of the Ozarks, Inc. (Ñ) | 2,183 | 32 | ||
Bankrate, Inc. (Æ)(Ñ) | 4,970 | 194 | ||
Banner Corp. (Ñ) | 1,300 | 12 | ||
BioMed Realty Trust, Inc. (ö)(Ñ) | 8,413 | 206 | ||
BOK Financial Corp. (Ñ) | 1,032 | 55 | ||
Boston Private Financial Holdings, Inc. (Ñ) | 6,521 | 37 | ||
Brandywine Realty Trust (ö) | 15,500 | 244 | ||
Broadridge Financial Solutions, Inc. (Ñ) | 2,503 | 53 | ||
Calamos Asset Management, Inc. Class A (Ñ) | 4,300 | 73 | ||
Capital City Bank Group, Inc. (Ñ) | 600 | 13 | ||
CapitalSource, Inc. (ö)(Ñ) | 4,194 | 46 | ||
Capitol Bancorp, Ltd. (Ñ) | 2,600 | 23 |
Principal Amount ($) or Shares | Market Value $ | |||
Capitol Federal Financial | 175 | 7 | ||
CapLease, Inc. (ö)(Ñ) | 4,100 | 31 | ||
Capstead Mortgage Corp. (ö) | 20,200 | 219 | ||
Cash America International, Inc. (Ñ) | 4,263 | 132 | ||
Castlepoint Holdings, Ltd. (Ñ) | 2,100 | 19 | ||
Cathay General Bancorp (Ñ) | 11,326 | 123 | ||
Cedar Shopping Centers, Inc. (ö)(Ñ) | 4,900 | 57 | ||
Center Financial Corp. (Ñ) | 1,510 | 13 | ||
City Bank (Ñ) | 1,200 | 10 | ||
City Holding Co. (Ñ) | 1,700 | 69 | ||
City National Corp. (Ñ) | 3,700 | 156 | ||
CNA Surety Corp. (Æ)(Ñ) | 5,340 | 67 | ||
Cohen & Steers, Inc. | 724 | 19 | ||
Colonial BancGroup, Inc. (The) (Ñ) | 32,900 | 145 | ||
Colonial Properties Trust (ö)(Ñ) | 9,200 | 184 | ||
Columbia Banking System, Inc. | 2,400 | 46 | ||
Commerce Bancshares, Inc. (Ñ) | 2,186 | 87 | ||
Community Trust Bancorp, Inc. (Ñ) | 1,000 | 26 | ||
Cowen Group, Inc. (Æ)(Ñ) | 1,000 | 8 | ||
Cullen/Frost Bankers, Inc. (Ñ) | 2,835 | 141 | ||
Cybersource Corp. (Æ)(Ñ) | 16,450 | 275 | ||
Darwin Professional Underwriters, Inc. (Æ)(Ñ) | 900 | 28 | ||
DCT Industrial Trust, Inc. (ö)(Ñ) | 4,529 | 38 | ||
Delphi Financial Group, Inc. Class A (Ñ) | 18,229 | 422 | ||
Deluxe Corp. (Ñ) | 40,622 | 724 | ||
Digital Realty Trust, Inc. (ö)(Ñ) | 4,053 | 166 | ||
Dime Community Bancshares (Ñ) | 1,383 | 23 | ||
Discover Financial Services (Ñ) | 6,300 | 83 | ||
EastGroup Properties, Inc. (ö)(Ñ) | 2,100 | 90 | ||
Education Realty Trust, Inc. (ö)(Ñ) | 4,700 | 55 | ||
Electro Rent Corp. (Ñ) | 24,137 | 303 | ||
EMC Insurance Group, Inc. (Ñ) | 900 | 22 | ||
Employers Holdings, Inc. | 6,100 | 126 | ||
Encore Capital Group, Inc. (Æ) | 1,700 | 15 | ||
Equity Lifestyle Properties, Inc. (ö) | 370 | 16 | ||
Equity One, Inc. (ö)(Ñ) | 4,818 | 99 | ||
Evercore Partners, Inc. Class A (Ñ) | 17,500 | 166 | ||
Extra Space Storage, Inc. (ö)(Ñ) | 12,800 | 197 | ||
Fair Isaac Corp. (Ñ) | 4,744 | 99 | ||
FBL Financial Group, Inc. Class A | 1,800 | 36 | ||
FCStone Group, Inc. (Æ)(Ñ) | 229 | 6 | ||
Federated Investors, Inc. Class B | 4,920 | 169 | ||
FelCor Lodging Trust, Inc. (ö)(Ñ) | 15,600 | 164 | ||
First American Corp. (Ñ) | 4,700 | 124 | ||
First Community Bancshares, Inc. (Ñ) | 400 | 11 | ||
First Financial Bancorp (Ñ) | 3,100 | 29 | ||
First Financial Bankshares, Inc. (Ñ) | 1,700 | 78 |
14 | Aggressive Equity Fund |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
First Place Financial Corp. (Ñ) | 6,800 | 64 | ||
First Potomac Realty Trust (ö)(Ñ) | 5,500 | 84 | ||
First State Bancorporation (Ñ) | 3,600 | 20 | ||
Flagstar Bancorp, Inc. | 1,400 | 4 | ||
Flushing Financial Corp. (Ñ) | 13,400 | 254 | ||
Franklin Street Properties Corp. (ö)(Ñ) | 17,450 | 221 | ||
GAMCO Investors, Inc. Class A (Ñ) | 800 | 40 | ||
GFI Group, Inc. (Ñ) | 6,595 | 59 | ||
Glimcher Realty Trust (ö) | 5,800 | 65 | ||
Global Payments, Inc. | 27 | 1 | ||
Gramercy Capital Corp. (ö)(Ñ) | 460 | 5 | ||
Green Bankshares, Inc. (Ñ) | 2,000 | 28 | ||
Greenhill & Co., Inc. (Ñ) | 2,227 | 120 | ||
Hallmark Financial Services (Æ)(Ñ) | 2,135 | 21 | ||
Hanmi Financial Corp. (Ñ) | 8,230 | 43 | ||
Hanover Insurance Group, Inc. (The) | 9,400 | 400 | ||
Harleysville Group, Inc. (Ñ) | 2,000 | 68 | ||
HCC Insurance Holdings, Inc. | 9,750 | 206 | ||
HCP, Inc. (ö)(Ñ) | 3,054 | 97 | ||
Health Care REIT, Inc. (ö)(Ñ) | 3,127 | 139 | ||
Heartland Payment Systems, Inc. (Ñ) | 2,591 | 61 | ||
Hercules Technology Growth Capital, Inc. (Ñ) | 34,600 | 309 | ||
Hersha Hospitality Trust (ö) | 3,400 | 26 | ||
Home Bancshares, Inc. (Ñ) | 700 | 16 | ||
Hospitality Properties Trust (ö) | 11,000 | 269 | ||
HRPT Properties Trust (ö) | 34,500 | 234 | ||
Hudson City Bancorp, Inc. (Ñ) | 6,000 | 100 | ||
Huntington Bancshares, Inc. | 29,600 | 171 | ||
Hypercom Corp. (Æ) | 84,306 | 371 | ||
IBERIABANK Corp. (Ñ) | 400 | 18 | ||
Independent Bank Corp. (Ñ) | 2,300 | 9 | ||
Independent Bank Corp. (Ñ) | 1,700 | 41 | ||
infoGROUP, Inc. (Ñ) | 3,315 | 15 | ||
Inland Real Estate Corp. (ö)(Ñ) | 6,400 | 92 | ||
Interactive Brokers Group, Inc. Class A (Æ)(Ñ) | 2,650 | 85 | ||
Interactive Data Corp. (Ñ) | 3,438 | 86 | ||
Intersections, Inc. (Æ) | 27,069 | 296 | ||
Intervest Bancshares Corp. Class A (Ñ) | 2,300 | 12 | ||
Invesco, Ltd. | 12,603 | 302 | ||
Investment Technology Group, Inc. (Æ) | 1,496 | 50 | ||
Investors Bancorp, Inc. (Æ) | 16,200 | 212 | ||
Investors Real Estate Trust (ö)(Ñ) | 3,600 | 34 | ||
IPC Holdings, Ltd. (Ñ) | 16,000 | 425 | ||
Jack Henry & Associates, Inc. (Ñ) | 3,229 | 70 | ||
Jefferies Group, Inc. (Ñ) | 19,900 | 335 | ||
JER Investment Trust, Inc. (Æ)(Þ) | 9,200 | 58 |
Principal Amount ($) or Shares | Market Value $ | |||
Kayne Anderson Energy Development Co. (Ñ) | 1,100 | 25 | ||
Kite Realty Group Trust (ö)(Ñ) | 2,000 | 25 | ||
Knight Capital Group, Inc. Class A (Æ)(Ñ) | 26,347 | 474 | ||
Kohlberg Capital Corp. (Ñ) | 900 | 9 | ||
LaBranche & Co., Inc. (Æ) | 15,600 | 110 | ||
Lakeland Bancorp, Inc. (Ñ) | 767 | 9 | ||
LandAmerica Financial Group, Inc. Class A (Ñ) | 11,600 | 257 | ||
LTC Properties, Inc. (ö)(Ñ) | 4,235 | 108 | ||
Mack-Cali Realty Corp. (ö) | 8,900 | 304 | ||
MainSource Financial Group, Inc. (Ñ) | 5,100 | 79 | ||
Meadowbrook Insurance Group, Inc. (Ñ) | 4,000 | 21 | ||
Medical Properties Trust, Inc. (ö)(Ñ) | 12,685 | 128 | ||
MFA Mortgage Investments, Inc. (ö)(Ñ) | 16,800 | 110 | ||
Midwest Banc Holdings, Inc. (Ñ) | 12,988 | 63 | ||
MVC Capital, Inc. | 1,000 | 14 | ||
Nara Bancorp, Inc. (Ñ) | 3,822 | 41 | ||
Nasdaq OMX Group (The) (Æ)(Ñ) | 4,941 | 131 | ||
National Interstate Corp. | 227 | 4 | ||
National Penn Bancshares, Inc. (Ñ) | 8,342 | 111 | ||
National Retail Properties, Inc. (ö)(Ñ) | 11,904 | 249 | ||
Nationwide Health Properties, Inc. (ö)(Ñ) | 485 | 15 | ||
Navigators Group, Inc. (Æ)(Ñ) | 4,150 | 224 | ||
NBT Bancorp, Inc. (Ñ) | 400 | 8 | ||
NewStar Financial, Inc. (Æ)(Ñ) | 2,200 | 13 | ||
NorthStar Realty Finance Corp. (ö)(Ñ) | 19,364 | 161 | ||
OceanFirst Financial Corp. (Ñ) | 600 | 11 | ||
Old National Bancorp (Ñ) | 8,008 | 114 | ||
Old Second Bancorp, Inc. (Ñ) | 800 | 9 | ||
Omega Healthcare Investors, Inc. (ö) | 1,541 | 26 | ||
OneBeacon Insurance Group, Ltd. Class A (Ñ) | 3,500 | 61 | ||
optionsXpress Holdings, Inc. (Ñ) | 4,352 | 97 | ||
Oriental Financial Group, Inc. | 9,100 | 130 | ||
Oritani Financial Corp. (Æ)(Ñ) | 1,282 | 21 | ||
Pacific Capital Bancorp NA (Ñ) | 846 | 12 | ||
PacWest Bancorp (Ñ) | 1,137 | 17 | ||
Parkway Properties, Inc. (ö)(Ñ) | 3,400 | 115 | ||
Patriot Capital Funding, Inc. (Ñ) | 1,400 | 9 | ||
Pennsylvania Real Estate Investment Trust (ö)(Ñ) | 7,900 | 183 | ||
Permian Basin Royalty Trust (Ñ) | 13,300 | 351 | ||
Philadelphia Consolidated Holding Co. (Æ)(Ñ) | 5,349 | 182 | ||
Phoenix Cos., Inc. (The) (Ñ) | 13,100 | 100 |
Aggressive Equity Fund | 15 |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Piper Jaffray Cos. (Æ)(Ñ) | 11,010 | 323 | ||
Platinum Underwriters Holdings, Ltd. | 9,000 | 293 | ||
PMA Capital Corp. Class A (Æ)(Ñ) | 2,700 | 25 | ||
Post Properties, Inc. (ö)(Ñ) | 3,214 | 96 | ||
Potlatch Corp. (ö)(Ñ) | 9,667 | 436 | ||
Preferred Bank (Ñ) | 1,050 | 5 | ||
Procentury Corp. | 1,000 | 16 | ||
Prospect Capital Corp. (Ñ) | 2,900 | 38 | ||
Prosperity Bancshares, Inc. (Ñ) | 28 | 1 | ||
Protective Life Corp. | 7,600 | 289 | ||
Provident Bankshares Corp. (Ñ) | 8,000 | 51 | ||
Pzena Investment Management, Inc. (Ñ) | 17,100 | 218 | ||
Ramco-Gershenson Properties Trust (ö)(Ñ) | 2,800 | 58 | ||
Raymond James Financial, Inc. (Ñ) | 2,412 | 64 | ||
Rayonier, Inc. (ö) | 230 | 10 | ||
Reinsurance Group of America, Inc. (Ñ) | 2,700 | 118 | ||
RenaissanceRe Holdings, Ltd. (Ñ) | 6,700 | 299 | ||
S&T Bancorp, Inc. (Ñ) | 70 | 2 | ||
S1 Corp. (Æ) | 19,100 | 145 | ||
Safeco Corp. | 2,245 | 151 | ||
Safety Insurance Group, Inc. | 1,700 | 61 | ||
Sandy Spring Bancorp, Inc. (Ñ) | 1,700 | 28 | ||
Santander BanCorp | 1,900 | 20 | ||
SCBT Financial Corp. (Ñ) | 608 | 17 | ||
SeaBright Insurance Holdings, Inc. (Æ) | 1,700 | 25 | ||
SEI Investments Co. | 6,206 | 146 | ||
Senior Housing Properties Trust (ö)(Ñ) | 8,900 | 174 | ||
Simmons First National Corp. Class A (Ñ) | 600 | 17 | ||
Southside Bancshares, Inc. (Ñ) | 1,200 | 22 | ||
Southwest Bancorp, Inc. (Ñ) | 2,000 | 23 | ||
StanCorp Financial Group, Inc. (Ñ) | 7,685 | 361 | ||
Sterling Bancorp (Ñ) | 6,800 | 81 | ||
Stifel Financial Corp. (Æ)(Ñ) | 1,698 | 58 | ||
Sun Bancorp, Inc. (Æ)(Ñ) | 1,575 | 16 | ||
Sunstone Hotel Investors, Inc. (ö)(Ñ) | 10,500 | 174 | ||
SY Bancorp, Inc. (Ñ) | 900 | 19 | ||
Tompkins Financial Corp. (Ñ) | 600 | 22 | ||
TradeStation Group, Inc. (Æ)(Ñ) | 2,471 | 25 | ||
Transatlantic Holdings, Inc. (Ñ) | 1,600 | 90 | ||
Trico Bancshares (Ñ) | 1,400 | 15 | ||
U-Store-It Trust (ö)(Ñ) | 17,600 | 210 | ||
UDR, Inc. (ö)(Ñ) | 5,800 | 130 | ||
Umpqua Holdings Corp. (Ñ) | 10,800 | 131 |
Principal Amount ($) or Shares | Market Value $ | |||
United America Indemnity, Ltd. Class A (Æ)(Ñ) | 3,500 | 47 | ||
United Rentals, Inc. (Æ)(Ñ) | 17,425 | 342 | ||
Universal American Corp. (Æ)(Ñ) | 11,412 | 117 | ||
Urstadt Biddle Properties, Inc. Class A (ö) | 1,000 | 15 | ||
Ventas, Inc. (ö) | 3,973 | 169 | ||
ViewPoint Financial Group | 11,400 | 168 | ||
Waddell & Reed Financial, Inc. Class A | 1,700 | 60 | ||
Washington Federal, Inc. (Ñ) | 7,176 | 130 | ||
Webster Financial Corp. (Ñ) | 13,656 | 254 | ||
WesBanco, Inc. (Ñ) | 2,200 | 38 | ||
West Coast Bancorp (Ñ) | 2,500 | 22 | ||
Westfield Financial, Inc. (Ñ) | 1,300 | 12 | ||
Whitney Holding Corp. (Ñ) | 2,300 | 42 | ||
Wilmington Trust Corp. (Ñ) | 509 | 13 | ||
Wilshire Bancorp, Inc. (Ñ) | 3,400 | 29 | ||
Wintrust Financial Corp. (Ñ) | 1,000 | 24 | ||
World Acceptance Corp. (Æ)(Ñ) | 870 | 29 | ||
Zenith National Insurance Corp. (Ñ) | 13,800 | 485 | ||
Zions Bancorporation (Ñ) | 934 | 29 | ||
28,019 | ||||
Health Care - 9.6% | ||||
Adolor Corp. (Æ)(Ñ) | 15,300 | 84 | ||
Affymetrix, Inc. (Æ) | 18,510 | 190 | ||
Air Methods Corp. (Æ)(Ñ) | 195 | 5 | ||
AMERIGROUP Corp. Class A (Æ)(Ñ) | 7,500 | 156 | ||
Analogic Corp. | 4,210 | 265 | ||
Ariad Pharmaceuticals, Inc. (Æ)(Ñ) | 9,363 | 22 | ||
Arthrocare Corp. (Æ)(Ñ) | 7,834 | 320 | ||
Bio-Rad Laboratories, Inc. Class A (Æ) | 2,741 | 222 | ||
BioScrip, Inc. (Æ) | 84,983 | 220 | ||
Candela Corp. (Æ) | 108,629 | 253 | ||
Capital Senior Living Corp. (Æ)(Ñ) | 7,820 | 59 | ||
Caraco Pharmaceutical Laboratories, Ltd. (Æ)(Ñ) | 744 | 10 | ||
Centene Corp. (Æ)(Ñ) | 15,159 | 254 | ||
Cephalon, Inc. (Æ)(Ñ) | 2,072 | 138 | ||
Charles River Laboratories International, Inc. (Æ)(Ñ) | 8,237 | 526 | ||
Chattem, Inc. (Æ) | 662 | 43 | ||
Covance, Inc. (Æ) | 4,120 | 354 | ||
Datascope Corp. (Ñ) | 10,400 | 489 | ||
Dentsply International, Inc. | 1,575 | 58 | ||
Depomed, Inc. (Æ)(Ñ) | 2,767 | 9 | ||
Emergent Biosolutions, Inc. (Æ)(Ñ) | 300 | 3 |
16 | Aggressive Equity Fund |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Endo Pharmaceuticals Holdings, Inc. (Æ)(Ñ) | 6,604 | 160 | ||
eResearchTechnology, Inc. (Æ)(Ñ) | 25,445 | 444 | ||
Gen-Probe, Inc. (Æ) | 6,165 | 293 | ||
Haemonetics Corp. (Æ)(Ñ) | 7,231 | 401 | ||
Hanger Orthopedic Group, Inc. (Æ) | 1,400 | 23 | ||
Harvard Bioscience, Inc. (Æ)(Ñ) | 37,566 | 175 | ||
Health Net, Inc. (Æ)(Ñ) | 2,584 | 62 | ||
HealthExtras, Inc. (Æ) | 420 | 13 | ||
Healthsouth Corp. (Æ) | 2,938 | 49 | ||
Healthspring, Inc. (Æ)(Ñ) | 29,223 | 493 | ||
Healthways, Inc. (Æ)(Ñ) | 2,537 | 75 | ||
Henry Schein, Inc. (Æ)(Ñ) | 352 | 18 | ||
Hill-Rom Holdings, Inc. (Ñ) | 5,187 | 140 | ||
HMS Holdings Corp. (Æ)(Ñ) | 24,844 | 533 | ||
Hologic, Inc. (Æ)(Ñ) | 34,869 | 760 | ||
Humana, Inc. (Æ) | 4,700 | 187 | ||
Icon PLC - ADR (Æ) | 8,157 | 616 | ||
ICU Medical, Inc. (Æ)(Ñ) | 6 | — | ||
Illumina, Inc. (Æ)(Ñ) | 18,156 | 1,582 | ||
Immucor, Inc. (Æ) | 19,758 | 511 | ||
Intuitive Surgical, Inc. (Æ) | 12 | 3 | ||
Invacare Corp. (Ñ) | 7,920 | 162 | ||
Invitrogen Corp. (Æ)(Ñ) | 6,200 | 243 | ||
Isis Pharmaceuticals, Inc. (Æ)(Ñ) | 4,695 | 64 | ||
Kendle International, Inc. (Æ)(Ñ) | 3,467 | 126 | ||
Kensey Nash Corp. (Æ)(Ñ) | 4,119 | 132 | ||
Kindred Healthcare, Inc. (Æ) | 7,786 | 224 | ||
Kinetic Concepts, Inc. (Æ)(Ñ) | 2,906 | 116 | ||
King Pharmaceuticals, Inc. (Æ)(Ñ) | 57,370 | 601 | ||
Luminex Corp. (Æ)(Ñ) | 11,807 | 243 | ||
Magellan Health Services, Inc. (Æ)(Ñ) | 3,537 | 131 | ||
Martek Biosciences Corp. (Æ)(Ñ) | 1,547 | 52 | ||
Masimo Corp. (Æ)(Ñ) | 15,480 | 532 | ||
Medcath Corp. (Æ)(Ñ) | 31 | 1 | ||
Medical Action Industries, Inc. (Æ)(Ñ) | 667 | 7 | ||
Medicis Pharmaceutical Corp. Class A (Ñ) | 5,475 | 114 | ||
Meridian Bioscience, Inc. (Ñ) | 8,500 | 229 | ||
Merit Medical Systems, Inc. (Æ) | 11,627 | 171 | ||
Molina Healthcare, Inc. (Æ)(Ñ) | 5,502 | 134 | ||
Natus Medical, Inc. (Æ) | 10,870 | 228 | ||
NuVasive, Inc. (Æ)(Ñ) | 9,562 | 427 | ||
OSI Pharmaceuticals, Inc. (Æ)(Ñ) | 3,250 | 134 | ||
Owens & Minor, Inc. (Ñ) | 3,300 | 151 | ||
Parexel International Corp. (Æ) | 14,598 | 384 | ||
Patterson Cos., Inc. (Æ)(Ñ) | 17,366 | 510 | ||
Pediatrix Medical Group, Inc. (Æ) | 3,369 | 166 | ||
Perrigo Co. (Ñ) | 13,596 | 432 |
Principal Amount ($) or Shares | Market Value $ | |||
Pharmaceutical Product Development, Inc. | 3,600 | 154 | ||
PharmaNet Development Group, Inc. (Æ) | 2,250 | 35 | ||
Phase Forward, Inc. (Æ)(Ñ) | 11,500 | 207 | ||
Psychiatric Solutions, Inc. (Æ)(Ñ) | 14,631 | 554 | ||
RehabCare Group, Inc. (Æ)(Ñ) | 4,300 | 69 | ||
Repligen Corp. (Æ)(Ñ) | 396 | 2 | ||
Res-Care, Inc. (Æ) | 3,300 | 59 | ||
Retractable Technologies, Inc. (Æ) | 72,750 | 108 | ||
Sirona Dental Systems, Inc. (Æ)(Ñ) | 4,437 | 115 | ||
Somanetics Corp. (Æ) | 300 | 6 | ||
SonoSite, Inc. (Æ)(Ñ) | 1,915 | 54 | ||
Stericycle, Inc. (Æ) | 10,250 | 530 | ||
STERIS Corp. (Ñ) | 5,400 | 155 | ||
SurModics, Inc. (Æ)(Ñ) | 348 | 16 | ||
Symmetry Medical, Inc. (Æ)(Ñ) | 2,455 | 40 | ||
Techne Corp. (Æ)(Ñ) | 6,910 | 535 | ||
Universal Health Services, Inc. Class B (Ñ) | 2,900 | 183 | ||
Viropharma, Inc. (Æ)(Ñ) | 13,229 | 146 | ||
Watson Pharmaceuticals, Inc. Class B (Æ)(Ñ) | 13,410 | 364 | ||
West Pharmaceutical Services, Inc. (Ñ) | 7,000 | 303 | ||
19,567 | ||||
Integrated Oils - 0.1% | ||||
Vaalco Energy, Inc. (Æ)(Ñ) | 28,200 | 239 | ||
Materials and Processing - 11.4% | ||||
Aceto Corp. | 19,833 | 152 | ||
Airgas, Inc. | 7,293 | 426 | ||
AK Steel Holding Corp. (Ñ) | 4,481 | 309 | ||
AM Castle & Co. (Ñ) | 3,625 | 104 | ||
Andersons, Inc. (The) (Ñ) | 1,900 | 77 | ||
Apogee Enterprises, Inc. (Ñ) | 378 | 6 | ||
Armstrong World Industries, Inc. (Ñ) | 3,200 | 94 | ||
Ashland, Inc. (Ñ) | 5,471 | 264 | ||
Barnes Group, Inc. (Ñ) | 9,900 | 229 | ||
Beacon Roofing Supply, Inc. (Æ) | 607 | 6 | ||
Buckeye Technologies, Inc. (Æ)(Ñ) | 23,731 | 201 | ||
Cabot Corp. (Ñ) | 23,820 | 579 | ||
Calgon Carbon Corp. (Æ)(Ñ) | 4,173 | 65 | ||
Carpenter Technology Corp. | 565 | 25 | ||
Celanese Corp. Class A (Ñ) | 16,676 | 761 | ||
Ceradyne, Inc. (Æ) | 5,500 | 189 | ||
CF Industries Holdings, Inc. (Ñ) | 6,500 | 993 | ||
Chemtura Corp. | 46,831 | 274 | ||
Chicago Bridge & Iron Co. NV | 11,699 | 466 |
Aggressive Equity Fund | 17 |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Cie Generale de Geophysique-Veritas -ADR (Æ) | 3,151 | 149 | ||
Clean Harbors, Inc. (Æ)(Ñ) | 2,067 | 147 | ||
Cleveland-Cliffs, Inc. (Ñ) | 3,350 | 399 | ||
Coeur d’Alene Mines Corp. (Æ)(Ñ) | 67,778 | 197 | ||
Comfort Systems USA, Inc. (Ñ) | 9,800 | 132 | ||
Commercial Metals Co. | 1,360 | 51 | ||
Corn Products International, Inc. | 1,988 | 98 | ||
Cytec Industries, Inc. | 4,800 | 262 | ||
Domtar Corp. (Æ) | 33,000 | 180 | ||
DuPont Fabros Technology, Inc. (ö)(Ñ) | 13,600 | 254 | ||
Dycom Industries, Inc. (Æ)(Ñ) | 2,800 | 41 | ||
Eastman Chemical Co. (Ñ) | 1,049 | 72 | ||
EMCOR Group, Inc. (Æ) | 25,916 | 739 | ||
Encore Wire Corp. (Ñ) | 4,600 | 97 | ||
Energy Conversion Devices, Inc. (Æ) | 2,500 | 184 | ||
EnerSys (Æ) | 5,500 | 188 | ||
Ennis, Inc. (Ñ) | 5,900 | 92 | ||
Ferro Corp. (Ñ) | 15,001 | 281 | ||
FMC Corp. (Ñ) | 1,633 | 126 | ||
Gafisa SA - ADR (Ñ) | 1,550 | 53 | ||
Gibraltar Industries, Inc. (Ñ) | 19,300 | 308 | ||
Glatfelter (Ñ) | 24,000 | 324 | ||
GrafTech International, Ltd. (Æ)(Ñ) | 264 | 7 | ||
Granite Construction, Inc. (Ñ) | 5,500 | 173 | ||
Haynes International, Inc. (Æ)(Ñ) | 4,780 | 275 | ||
HB Fuller Co. (Ñ) | 5,200 | 117 | ||
Hecla Mining Co. (Æ)(Ñ) | 11 | — | ||
Hercules, Inc. (Ñ) | 8,869 | 150 | ||
IAMGOLD Corp. | 54,544 | 330 | ||
Innophos Holdings, Inc. (Ñ) | 2,200 | 70 | ||
Innospec, Inc. (Ñ) | 5,294 | 100 | ||
Insituform Technologies, Inc. Class A (Æ)(Ñ) | 25,530 | 389 | ||
Insteel Industries, Inc. | 1,000 | 18 | ||
Interface, Inc. Class A (Ñ) | 1,660 | 21 | ||
Jacobs Engineering Group, Inc. (Æ)(Ñ) | 7,000 | 565 | ||
Kaiser Aluminum Corp. (Ñ) | 59 | 3 | ||
KBR, Inc. | 24,484 | 855 | ||
Koppers Holdings, Inc. (Ñ) | 2,607 | 109 | ||
LB Foster Co. Class A (Æ)(Ñ) | 2,396 | 80 | ||
Lennox International, Inc. (Ñ) | 4,024 | 117 | ||
LSB Industries, Inc. (Æ) | 2,020 | 40 | ||
LSI Industries, Inc. (Ñ) | 7,474 | 61 | ||
Lubrizol Corp. (Ñ) | 5,131 | 238 | ||
Lundin Mining Corp. (Æ) | 20,736 | 126 | ||
Lydall, Inc. (Æ) | 35,775 | 449 | ||
McDermott International, Inc. (Æ) | 16,943 | 1,049 | ||
MeadWestvaco Corp. (Ñ) | 4,484 | 107 |
Principal Amount ($) or Shares | Market Value $ | |||
Memry Corp. (Æ) | 7,169 | 17 | ||
Mercer International, Inc. (Æ)(Ñ) | 3,100 | 23 | ||
Myers Industries, Inc. | 23,100 | 188 | ||
Nalco Holding Co. | 7,727 | 163 | ||
Neenah Paper, Inc. (Ñ) | 2,500 | 42 | ||
NewMarket Corp. (Ñ) | 1,245 | 82 | ||
Olympic Steel, Inc. (Ñ) | 3,433 | 261 | ||
OM Group, Inc. (Æ)(Ñ) | 7,070 | 232 | ||
Owens Corning, Inc. (Æ)(Ñ) | 6,743 | 153 | ||
Owens-Illinois, Inc. (Æ)(Ñ) | 9,508 | 396 | ||
Penn Virginia GP Holdings, LP | 209 | 7 | ||
Perini Corp. (Æ)(Ñ) | 4,900 | 162 | ||
Precision Castparts Corp. | 1,499 | 144 | ||
Quanta Services, Inc. (Æ)(Ñ) | 11,235 | 374 | ||
Reliance Steel & Aluminum Co. (Ñ) | 3,125 | 241 | ||
Resource Capital Corp. (ö)(Ñ) | 2,800 | 20 | ||
Richmont Mines, Inc. (Æ)(Ñ) | 3,994 | 12 | ||
Rockwood Holdings, Inc. (Æ) | 529 | 18 | ||
Schnitzer Steel Industries, Inc. Class A (Ñ) | 4,786 | 548 | ||
Scotts Miracle-Gro Co. (The) Class A | 2,980 | 52 | ||
Shaw Group, Inc. (The) (Æ)(Ñ) | 4,844 | 299 | ||
Sigma-Aldrich Corp. (Ñ) | 5,700 | 307 | ||
Sims Group, Ltd. - ADR (Ñ) | 18,878 | 753 | ||
Sonoco Products Co. | 6,751 | 209 | ||
Spartech Corp. | 6,400 | 60 | ||
St. Joe Co. (The) (Æ)(Ñ) | 3,360 | 115 | ||
Standard Register Co. (The) (Ñ) | 2,100 | 20 | ||
Steel Dynamics, Inc. (Ñ) | 9,700 | 379 | ||
Superior Essex, Inc. (Æ)(Ñ) | 4,000 | 179 | ||
Symyx Technologies (Æ)(Ñ) | 52,800 | 369 | ||
Tejon Ranch Co. (Æ) | 134 | 5 | ||
Temple-Inland, Inc. (Ñ) | 48,300 | 544 | ||
Timken Co. | 10,700 | 352 | ||
Tredegar Corp. (Ñ) | 11,189 | 165 | ||
Universal Forest Products, Inc. | 2,500 | 75 | ||
Universal Stainless & Alloy (Æ)(Ñ) | 500 | 19 | ||
URS Corp. (Æ) | 24,902 | 1,045 | ||
US Concrete, Inc. (Æ)(Ñ) | 700 | 3 | ||
Valspar Corp. | 788 | 15 | ||
WCA Waste Corp. (Æ) | 24,871 | 158 | ||
23,249 | ||||
Miscellaneous - 0.9% | ||||
Carlisle Cos., Inc. (Ñ) | 17,300 | 501 | ||
Castlepoint Holdings, Ltd. (Æ)(Þ) | 30,900 | 281 | ||
Kaman Corp. Class A (Ñ) | 10,900 | 248 | ||
Lancaster Colony Corp. (Ñ) | 6,700 | 203 |
18 | Aggressive Equity Fund |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Teleflex, Inc. | 5,700 | 317 | ||
Walter Industries, Inc. Class A | 2,317 | 252 | ||
1,802 | ||||
Other Energy - 12.9% | ||||
Allis-Chalmers Energy, Inc. (Æ) | 3,876 | 69 | ||
Atlas America, Inc. (Ñ) | 9,299 | 419 | ||
Atwood Oceanics, Inc. (Æ) | 7,100 | 883 | ||
Berry Petroleum Co. Class A (Ñ) | 9,166 | 540 | ||
Bois d’Arc Energy, Inc. (Æ) | 12,208 | 297 | ||
Brigham Exploration Co. (Æ)(Ñ) | 30,100 | 476 | ||
Bronco Drilling Co., Inc. (Æ)(Ñ) | 22,820 | 419 | ||
Callon Petroleum Co. (Æ)(Ñ) | 2,222 | 61 | ||
Cameron International Corp. (Æ)(Ñ) | 4,420 | 245 | ||
Carrizo Oil & Gas, Inc. (Æ)(Ñ) | 5,700 | 388 | ||
Cimarex Energy Co. | 15,438 | 1,076 | ||
Clayton Williams Energy, Inc. (Æ)(Ñ) | 640 | 70 | ||
Complete Production Services, Inc. (Æ)(Ñ) | 6,309 | 230 | ||
Comstock Resources, Inc. (Æ)(Ñ) | 771 | 65 | ||
Concho Resources, Inc. (Æ) | 7,200 | 269 | ||
Continental Resources, Inc. (Æ)(Ñ) | 11,739 | 814 | ||
Core Laboratories NV (Æ)(Ñ) | 5,385 | 767 | ||
Delek US Holdings, Inc. (Ñ) | 7,400 | 68 | ||
Denbury Resources, Inc. (Æ) | 27,929 | 1,019 | ||
Dril-Quip, Inc. (Æ) | 14,102 | 888 | ||
Encore Acquisition Co. (Æ) | 1,934 | 145 | ||
Endeavour International Corp. (Æ)(Ñ) | 10,249 | 22 | ||
Energy Partners, Ltd. (Æ)(Ñ) | 8,014 | 120 | ||
EXCO Resources, Inc. (Æ)(Ñ) | 21,968 | 811 | ||
Exterran Holdings, Inc. (Æ)(Ñ) | 9,115 | 652 | ||
FMC Technologies, Inc. (Æ)(Ñ) | 8,252 | 635 | ||
Forest Oil Corp. (Æ)(Ñ) | 2,747 | 205 | ||
Foundation Coal Holdings, Inc. (Ñ) | 2,366 | 210 | ||
Geokinetics, Inc. (Æ)(Ñ) | 14,517 | 263 | ||
Global Industries, Ltd. (Æ) | 1,344 | 24 | ||
GMX Resources, Inc. (Æ)(Ñ) | 1,200 | 89 | ||
Gran Tierra Energy, Inc. (Æ)(Ñ) | 8,690 | 69 | ||
Grey Wolf, Inc. (Æ)(Ñ) | 77,355 | 698 | ||
Gulf Island Fabrication, Inc. (Ñ) | 2,700 | 132 | ||
Helix Energy Solutions Group, Inc. (Æ)(Ñ) | 9,144 | 381 | ||
Helmerich & Payne, Inc. | 5,900 | 425 | ||
Hercules Offshore, Inc. (Æ)(Ñ) | 7,024 | 267 | ||
Hornbeck Offshore Services, Inc. (Æ)(Ñ) | 19,167 | 1,083 | ||
Hugoton Royalty Trust (Ñ) | 9,052 | 335 | ||
International Coal Group, Inc. (Æ)(Ñ) | 23,531 | 307 |
Principal Amount ($) or Shares | Market Value $ | |||
JA Solar Holdings Co., Ltd. - ADR (Æ)(Ñ) | 10,650 | 179 | ||
Key Energy Services, Inc. (Æ) | 3,339 | 65 | ||
Mariner Energy, Inc. (Æ)(Ñ) | 21,059 | 779 | ||
Massey Energy Co. | 2,975 | 279 | ||
McMoRan Exploration Co. (Æ) | 2,036 | 56 | ||
Meridian Resource Corp. (Æ)(Ñ) | 6,329 | 19 | ||
Newfield Exploration Co. (Æ) | 3,680 | 240 | ||
Oceaneering International, Inc. (Æ) | 11,437 | 881 | ||
Oil States International, Inc. (Æ)(Ñ) | 3,300 | 209 | ||
Penn Virginia Corp. | 3,802 | 287 | ||
PetroHawk Energy Corp. (Æ)(Ñ) | 15,348 | 711 | ||
Petroquest Energy, Inc. (Æ)(Ñ) | 19,130 | 515 | ||
Quicksilver Resources, Inc. (Æ)(Ñ) | 2,700 | 104 | ||
Range Resources Corp. | 3,650 | 239 | ||
Rosetta Resources, Inc. (Æ)(Ñ) | 15,100 | 430 | ||
Rowan Cos., Inc. (Ñ) | 8,808 | 412 | ||
Sabine Royalty Trust (Ñ) | 2,200 | 150 | ||
St. Mary Land & Exploration Co. (Ñ) | 6,100 | 394 | ||
Stone Energy Corp. (Æ) | 12,500 | 824 | ||
Superior Energy Services, Inc. (Æ)(Ñ) | 28,608 | 1,577 | ||
Swift Energy Co. (Æ)(Ñ) | 2,700 | 178 | ||
Tesoro Corp. (Ñ) | 2,211 | 44 | ||
Union Drilling, Inc. (Æ)(Ñ) | 1,300 | 28 | ||
Unit Corp. (Æ) | 15,079 | 1,251 | ||
W&T Offshore, Inc. (Ñ) | 6,452 | 377 | ||
26,164 | ||||
Producer Durables - 8.3% | ||||
Actuant Corp. Class A (Ñ) | 4,514 | 141 | ||
Aerovironment, Inc. (Æ) | 2,000 | 54 | ||
AGCO Corp. (Æ)(Ñ) | 12,194 | 639 | ||
Airvana, Inc. (Æ)(Ñ) | 1,400 | 7 | ||
Alliant Techsystems, Inc. (Æ)(Ñ) | 2,523 | 257 | ||
Ametek, Inc. | 3,300 | 156 | ||
AO Smith Corp. (Ñ) | 4,400 | 144 | ||
Argon ST, Inc. (Æ) | 6,400 | 159 | ||
Arris Group, Inc. (Æ) | 26 | — | ||
ATMI, Inc. (Æ)(Ñ) | 746 | 21 | ||
AZZ, Inc. (Æ) | 54 | 2 | ||
Baldor Electric Co. (Ñ) | 3,500 | 122 | ||
BE Aerospace, Inc. (Æ) | 2,600 | 61 | ||
Belden, Inc. (Ñ) | 7,013 | 238 | ||
Bucyrus International, Inc. Class A | 7,150 | 522 | ||
Canadian Solar, Inc. (Æ)(Ñ) | 9,800 | 394 | ||
Cascade Corp. (Ñ) | 2,100 | 89 | ||
Chart Industries, Inc. (Æ)(Ñ) | 23,365 | 1,136 | ||
Cognex Corp. (Ñ) | 2,097 | 48 |
Aggressive Equity Fund | 19 |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Cohu, Inc. (Ñ) | 9,400 | 138 | ||
CommScope, Inc. (Æ)(Ñ) | 4,126 | 218 | ||
Covanta Holding Corp. (Æ)(Ñ) | 1,484 | 40 | ||
Crane Co. (Ñ) | 136 | 5 | ||
Credence Systems Corp. (Æ)(Ñ) | 79,211 | 103 | ||
CTS Corp. | 4,700 | 47 | ||
Darling International, Inc. (Æ) | 11,000 | 182 | ||
Desarrolladora Homex SAB de CV - ADR (Æ) | 900 | 53 | ||
Donaldson Co., Inc. | 11,150 | 498 | ||
Dover Corp. | 10,400 | 503 | ||
Ducommun, Inc. (Æ) | 1,900 | 44 | ||
Electro Scientific Industries, Inc. (Æ)(Ñ) | 31,105 | 441 | ||
EnergySolutions, Inc. (Ñ) | 4,700 | 105 | ||
EnPro Industries, Inc. (Æ) | 2,900 | 108 | ||
Esterline Technologies Corp. (Æ) | 2,911 | 143 | ||
Federal Signal Corp. (Ñ) | 10,000 | 120 | ||
Flowserve Corp. | 6,988 | 955 | ||
Gardner Denver, Inc. (Æ) | 5,600 | 318 | ||
Gehl Co. (Æ)(Ñ) | 800 | 12 | ||
General Cable Corp. (Æ)(Ñ) | 2,302 | 140 | ||
GenTek, Inc. (Æ)(Ñ) | 762 | 20 | ||
Goodrich Corp. | 6,688 | 317 | ||
Hardinge, Inc. (Ñ) | 2,200 | 29 | ||
Herman Miller, Inc. (Ñ) | 4,772 | 119 | ||
HNI Corp. (Ñ) | 3,329 | 59 | ||
Hovnanian Enterprises, Inc. Class A (Æ) | 9,589 | 53 | ||
Hubbell, Inc. | 35 | 2 | ||
Hubbell, Inc. Class B (Ñ) | 3,311 | 132 | ||
Itron, Inc. (Æ)(Ñ) | 3,692 | 363 | ||
Joy Global, Inc. | 14,495 | 1,099 | ||
Kennametal, Inc. | 192 | 6 | ||
Kimball International, Inc. Class B (Ñ) | 40,661 | 337 | ||
Lexmark International, Inc. Class A (Æ)(Ñ) | 5,842 | 195 | ||
Lincoln Electric Holdings, Inc. (Ñ) | 2,028 | 160 | ||
M/I Homes, Inc. (Ñ) | 6,100 | 96 | ||
MasTec, Inc. (Æ)(Ñ) | 4,200 | 45 | ||
MDC Holdings, Inc. | 489 | 19 | ||
Molex, Inc. (Ñ) | 7,700 | 188 | ||
Moog, Inc. Class A (Æ)(Ñ) | 833 | 31 | ||
NVR, Inc. (Æ)(Ñ) | 258 | 129 | ||
Orbital Sciences Corp. (Æ)(Ñ) | 2,419 | 57 | ||
Park-Ohio Holdings Corp. (Æ)(Ñ) | 1,100 | 16 | ||
Perceptron, Inc. (Æ) | 40,269 | 352 | ||
Plantronics, Inc. (Ñ) | 9,166 | 205 |
Principal Amount ($) or Shares | Market Value $ | |||
Powerwave Technologies, Inc. (Æ)(Ñ) | 17,000 | 72 | ||
Pulte Homes, Inc. (Ñ) | 2,236 | 21 | ||
Ritchie Bros Auctioneers, Inc. | 35,090 | 952 | ||
Robbins & Myers, Inc. (Ñ) | 17,638 | 880 | ||
SBA Communications Corp. Class A (Æ)(Ñ) | 12,678 | 457 | ||
Steelcase, Inc. Class A (Ñ) | 17,216 | 173 | ||
Sun Hydraulics Corp. | 1,900 | 61 | ||
Technitrol, Inc. | 16,900 | 287 | ||
Tecumseh Products Co. Class A (Æ)(Ñ) | 15,590 | 511 | ||
Thomas & Betts Corp. (Æ)(Ñ) | 100 | 4 | ||
Ultratech, Inc. (Æ)(Ñ) | 3,793 | 59 | ||
Varian Semiconductor Equipment Associates, Inc. (Æ)(Ñ) | 6,823 | 238 | ||
Waters Corp. (Æ) | 7,476 | 482 | ||
Watts Water Technologies, Inc. Class A | 72 | 2 | ||
Woodward Governor Co. | 4,800 | 171 | ||
Zygo Corp. (Æ)(Ñ) | 1,200 | 12 | ||
16,774 | ||||
Technology - 13.7% | ||||
3Com Corp. (Æ)(Ñ) | 26,000 | 55 | ||
Adaptec, Inc. (Æ)(Ñ) | 1,677 | 5 | ||
Adtran, Inc. (Ñ) | 12,200 | 291 | ||
Affiliated Computer Services, Inc. Class A (Æ) | 10,900 | 583 | ||
American Science & Engineering, Inc. (Ñ) | 1,800 | 93 | ||
Amkor Technology, Inc. (Æ)(Ñ) | 26,100 | 272 | ||
Amphenol Corp. lass A (Ñ) | 21,658 | 972 | ||
Anadigics, Inc. (Æ)(Ñ) | 20,800 | 205 | ||
Ansys, Inc. (Æ)(Ñ) | 19,293 | 909 | ||
Arrow Electronics, Inc. (Æ)(Ñ) | 5,450 | 167 | ||
AsiaInfo Holdings, Inc. (Æ)(Ñ) | 1,845 | 22 | ||
AuthenTec, Inc. (Æ) | 28,399 | 296 | ||
Avnet, Inc. (Æ) | 8,800 | 240 | ||
Avocent Corp. (Æ)(Ñ) | 1,225 | 23 | ||
Bel Fuse, Inc. lass B (Ñ) | 700 | 17 | ||
Benchmark Electronics, Inc. (Æ)(Ñ) | 24,600 | 402 | ||
BGC Partners, Inc. lass A (Æ) | 11,800 | 89 | ||
Blackbaud, Inc. (Ñ) | 5,522 | 118 | ||
Blackboard, Inc. (Æ) | 9,190 | 351 | ||
BMC Software, Inc. (Æ)(Ñ) | 6,456 | 232 | ||
Bookham, Inc. (Æ) | 12,600 | 21 | ||
CACI International, Inc. lass A (Æ) | 5,400 | 247 | ||
Cadence Design Systems, Inc. (Æ)(Ñ) | 10,990 | 111 | ||
Captaris, Inc. (Æ)(Ñ) | 1,168 | 5 |
20 | Aggressive Equity Fund |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Cavium Networks, Inc. (Æ)(Ñ) | 20,574 | 432 | ||
Celestica, Inc. (Æ)(Ñ) | 35,688 | 301 | ||
Ciber, Inc. (Æ)(Ñ) | 16,200 | 101 | ||
Cognizant Technology Solutions Corp. Class A (Æ)(Ñ) | 6,860 | 223 | ||
Compuware Corp. (Æ)(Ñ) | 28,000 | 267 | ||
Comtech Telecommunications Corp. (Æ)(Ñ) | 315 | 15 | ||
Comverse Technology, Inc. (Æ)(Ñ) | 18,677 | 317 | ||
Conexant Systems, Inc. (Æ) | 1,980 | 9 | ||
Constant Contact, Inc. (Æ)(Ñ) | 5,550 | 105 | ||
Cray, Inc. (Æ)(Ñ) | 9,026 | 42 | ||
CSG Systems International, Inc. (Æ)(Ñ) | 6,089 | 67 | ||
Cubic Corp. (Ñ) | 8,400 | 187 | ||
Daktronics, Inc. | 144 | 3 | ||
Data Domain, Inc. (Æ)(Ñ) | 9,450 | 220 | ||
Digi International, Inc. (Æ)(Ñ) | 2,075 | 16 | ||
Digital River, Inc. (Æ)(Ñ) | 4,001 | 154 | ||
Double-Take Software, Inc. (Æ)(Ñ) | 2,750 | 38 | ||
DRS Technologies, Inc. | 539 | 42 | ||
Extreme Networks (Æ)(Ñ) | 16,200 | 46 | ||
F5 Networks, Inc. (Æ)(Ñ) | 13,116 | 373 | ||
First Solar, Inc. (Æ)(Ñ) | 2,835 | 773 | ||
Flextronics International, Ltd. (Æ) | 32,010 | 301 | ||
Flir Systems, Inc. (Æ)(Ñ) | 7,000 | 284 | ||
Foundry Networks, Inc. (Æ) | 4,344 | 51 | ||
Harris Corp. | 4,460 | 225 | ||
Hittite Microwave Corp. (Æ)(Ñ) | 5,700 | 203 | ||
II-VI, Inc. (Æ)(Ñ) | 124 | 4 | ||
Imation Corp. (Ñ) | 9,854 | 226 | ||
Informatica Corp. (Æ)(Ñ) | 18,540 | 279 | ||
Ingram Micro, Inc. Class A (Æ) | 18,100 | 321 | ||
Integrated Device Technology, Inc. (Æ) | 56,816 | 565 | ||
Integrated Silicon Solution, Inc. (Æ) | 800 | 4 | ||
Interactive Intelligence, Inc. (Æ)(Ñ) | 414 | 5 | ||
Intermec, Inc. (Æ) | 7,859 | 166 | ||
International Rectifier Corp. (Æ)(Ñ) | 11,775 | 226 | ||
Interwoven, Inc. (Æ) | 15,300 | 184 | ||
ION Geophysical Corp. (Æ)(Ñ) | 27 | 1 | ||
JDA Software Group, Inc. (Æ) | 4,500 | 81 | ||
Kemet Corp. (Æ)(Ñ) | 13,200 | 43 | ||
Mantech International Corp. Class A (Æ)(Ñ) | 3,850 | 185 | ||
Marvell Technology Group, Ltd. (Æ)(Ñ) | 20,485 | 362 | ||
MEMC Electronic Materials, Inc. (Æ) | 3,550 | 218 | ||
Methode Electronics, Inc. (Ñ) | 1,500 | 16 | ||
Micrel, Inc. (Ñ) | 46,190 | 423 | ||
Micros Systems, Inc. (Æ)(Ñ) | 37,233 | 1,135 | ||
Microsemi Corp. (Æ)(Ñ) | 19,424 | 489 |
Principal Amount ($) or Shares | Market Value $ | |||
MicroStrategy, Inc. lass A (Æ)(Ñ) | 1,790 | 116 | ||
Monolithic Power Systems, Inc. (Æ)(Ñ) | 13,400 | 290 | ||
NAM TAI Electronics, Inc. | 28,100 | 368 | ||
National Semiconductor Corp. | 6,697 | 138 | ||
NCR Corp. (Æ) | 19,354 | 488 | ||
Ness Technologies, Inc. (Æ) | 20,400 | 206 | ||
Netlogic Microsystems, Inc. (Æ)(Ñ) | 14,960 | 497 | ||
Nice Systems, Ltd. - ADR (Æ) | 34,863 | 1,031 | ||
Omniture, Inc. (Æ)(Ñ) | 12,442 | 231 | ||
ON Semiconductor Corp. (Æ)(Ñ) | 8,000 | 73 | ||
Oplink Communications, Inc. (Æ)(Ñ) | 61 | 1 | ||
OSI Systems, Inc. (Æ)(Ñ) | 12,417 | 266 | ||
Parametric Technology Corp. (Æ) | 1,040 | 17 | ||
PerkinElmer, Inc. (Ñ) | 30,598 | 852 | ||
Perot Systems Corp. Class A (Æ) | 972 | 15 | ||
Power Integrations, Inc. (Æ)(Ñ) | 10,700 | 338 | ||
QAD, Inc. (Ñ) | 264 | 2 | ||
RealNetworks, Inc. (Æ)(Ñ) | 21,500 | 142 | ||
SAIC, Inc. (Æ)(Ñ) | 13,300 | 277 | ||
Salesforce.com, Inc. (Æ)(Ñ) | 4,410 | 301 | ||
Sanmina-SCI Corp. (Æ) | 90,700 | 116 | ||
Satyam Computer Services, Ltd. - ADR (Ñ) | 9,070 | 222 | ||
Scansource, Inc. (Æ)(Ñ) | 4,708 | 126 | ||
Secure Computing Corp. (Æ)(Ñ) | 42 | — | ||
Silicon Image, Inc. (Æ)(Ñ) | 10,280 | 75 | ||
Silicon Storage Technology, Inc. (Æ)(Ñ) | 1,500 | 4 | ||
Skyworks Solutions, Inc. (Æ)(Ñ) | 24,900 | 246 | ||
Solera Holdings, Inc. (Æ) | 12,770 | 353 | ||
SonicWALL, Inc. (Æ)(Ñ) | 16,300 | 105 | ||
Standard Microsystems Corp. (Æ) | 824 | 22 | ||
STEC, Inc. (Æ)(Ñ) | 8,267 | 85 | ||
Sybase, Inc. (Æ)(Ñ) | 21,665 | 637 | ||
Synaptics, Inc. (Æ)(Ñ) | 1,293 | 49 | ||
Syniverse Holdings, Inc. (Æ) | 26,030 | 422 | ||
SYNNEX Corp. (Æ)(Ñ) | 8,300 | 208 | ||
Synopsys, Inc. (Æ)(Ñ) | 6,829 | 163 | ||
Tellabs, Inc. (Æ)(Ñ) | 20,000 | 93 | ||
Tier Technologies, Inc. Class B (Æ) | 42,990 | 344 | ||
Trimble Navigation, Ltd. (Æ)(Ñ) | 10,048 | 359 | ||
TriQuint Semiconductor, Inc. (Æ) | 70,716 | 429 | ||
TTM Technologies, Inc. (Æ) | 15,277 | 202 | ||
Tyler Technologies, Inc. (Æ)(Ñ) | 97 | 1 | ||
Verint Systems, Inc. (Æ) | 7,211 | 169 | ||
Vignette Corp. (Æ)(Ñ) | 8,424 | 101 | ||
Vishay Intertechnology, Inc. (Æ) | 51,160 | 454 | ||
Vocus, Inc. (Æ)(Ñ) | 22,110 | 711 | ||
Volterra Semiconductor Corp. (Æ) | 11,800 | 204 |
Aggressive Equity Fund | 21 |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Western Digital Corp. (Æ)(Ñ) | 4,350 | 150 | ||
White Electronic Designs Corp. (Æ) | 94,514 | 434 | ||
Zebra Technologies Corp. Class A (Æ) | 1,764 | 58 | ||
Zoran Corp. (Æ)(Ñ) | 11,324 | 133 | ||
27,778 | ||||
Utilities - 4.5% | ||||
AGL Resources, Inc. | 5,463 | 189 | ||
Alaska Communications Systems Group, Inc. (Ñ) | 9,695 | 116 | ||
Alliant Energy Corp. (Ñ) | 10,861 | 372 | ||
Atlantic Tele-Network, Inc. (Ñ) | 1,600 | 44 | ||
Atmos Energy Corp. (Ñ) | 17,855 | 492 | ||
Aventine Renewable Energy Holdings, Inc. (Æ) | 6,800 | 30 | ||
Avista Corp. (Ñ) | 19,900 | 427 | ||
California Water Service Group (Ñ) | 2,100 | 69 | ||
CenturyTel, Inc. (Ñ) | 25,550 | 909 | ||
Citizens Communications Co. (Ñ) | 5,216 | 59 | ||
Cleco Corp. (Ñ) | 26,105 | 609 | ||
El Paso Electric Co. (Æ) | 209 | 4 | ||
Empire District Electric Co. (The) | 187 | 4 | ||
Energen Corp. | 6,733 | 525 | ||
Great Plains Energy, Inc. (Ñ) | 11,750 | 297 | ||
Idacorp, Inc. (Ñ) | 20,270 | 586 | ||
Iowa Telecommunications Services, Inc. (Ñ) | 8,828 | 156 | ||
Laclede Group, Inc. (The) (Ñ) | 3,500 | 141 | ||
MDU Resources Group, Inc. | 10,786 | 376 | ||
MGE Energy, Inc. (Ñ) | 300 | 10 | ||
New Jersey Resources Corp. (Ñ) | 6,750 | 220 | ||
NII Holdings, Inc. (Æ) | 4,700 | 223 | ||
NTELOS Holdings Corp. (Ñ) | 4,706 | 119 | ||
OGE Energy Corp. | 6,059 | 192 | ||
Oneok, Inc. | 5,300 | 259 | ||
Pepco Holdings, Inc. | 8,100 | 208 | ||
Pike Electric Corp. (Æ)(Ñ) | 761 | 13 | ||
Portland General Electric Co. | 4,900 | 110 | ||
Premiere Global Services, Inc. (Æ) | 11,100 | 162 | ||
RCN Corp. (Æ)(Ñ) | 500 | 5 | ||
SCANA Corp. (Ñ) | 4,481 | 166 | ||
Southern Union Co. | 5,561 | 150 | ||
Southwest Gas Corp. | 25,644 | 762 | ||
Southwest Water Co. (Ñ) | 2,500 | 25 | ||
Suburban Propane Partners, LP (Ñ) | 3,100 | 119 | ||
SureWest Communications (Ñ) | 1,200 | 10 |
Principal Amount ($) or Shares | Market Value $ | ||||
Telephone & Data Systems, Inc. (Ñ) | 2,464 | 117 | |||
UGI Corp. | 26,700 | 767 | |||
USA Mobility, Inc. (Æ)(Ñ) | 3,600 | 27 | |||
9,069 | |||||
Total Common Stocks | |||||
(cost $191,323) | 193,923 | ||||
Short-Term Investments - 4.0% | |||||
Russell Investment Company | 7,078,000 | 7,078 | |||
United States Treasury Bills (ž)(§) | |||||
1.915% due 09/18/08 | 1,000 | 995 | |||
Total Short-Term Investments | |||||
(cost $8,074) | 8,073 | ||||
Other Securities - 43.0% | |||||
State Street Securities Lending | 87,191,950 | 87,192 | |||
Total Other Securities | |||||
(cost $87,192) | 87,192 | ||||
Total Investments - 142.5% | |||||
(identified cost $286,589) | 289,188 | ||||
Other Assets and Liabilities, Net - (42.5%) | (86,277 | ) | |||
Net Assets - 100.0% | 202,911 | ||||
A portion of the portfolio has been fair valued as of period end.
See accompanying notes which are an integral part of the financial statements.
22 | Aggressive Equity Fund |
Table of Contents
Russell Investment Funds
Aggressive Equity Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except contracts)
Futures Contracts (Number of Contracts) | Notional | Unrealized Appreciation (Depreciation) $ | ||||
Long Positions | ||||||
Russell 2000 Mini Index (CME) expiration date 09/08 (128) | USD | 8,854 | (318) | |||
Total Unrealized Appreciation (Depreciation) on Open Futures Contracts | (318) | |||||
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Portfolio Summary | % of Net Assets | ||
Auto and Transportation | 3.7 | ||
Consumer Discretionary | 14.5 | ||
Consumer Staples | 2.1 | ||
Financial Services | 13.8 | ||
Health Care | 9.6 | ||
Integrated Oils | 0.1 | ||
Materials and Processing | 11.4 | ||
Miscellaneous | 0.9 | ||
Other Energy | 12.9 | ||
Producer Durables | 8.3 | ||
Technology | 13.7 | ||
Utilities | 4.5 | ||
Short-Term Investments | 4.0 | ||
Other Securities | 43.0 | ||
Total Investments | 142.5 | ||
Other Assets and Liabilities, Net | (42.5 | ) | |
100.0 | |||
Futures Contracts | (0.2 | ) |
See accompanying notes which are an integral part of the financial statements.
Aggressive Equity Fund | 23 |
Table of Contents
Non-U.S. Fund
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value | ||||||
January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
June 30, 2008 | $ | 886.40 | $ | 1,019.14 | ||
Expenses Paid During Period* | $ | 5.39 | $ | 5.77 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.15% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
24 | Non-U.S. Fund |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Common Stocks - 88.8% | ||||
Australia - 2.1% | ||||
Adelaide Brighton, Ltd. | 12,275 | 44 | ||
AGL Energy, Ltd. | 1,793 | 25 | ||
Allco Finance Group, Ltd. (Æ) | 15,541 | 6 | ||
AMP, Ltd. | 17,790 | 114 | ||
Ansell, Ltd. - GDR | 20,647 | 183 | ||
Austereo Group, Ltd. | 4,341 | 6 | ||
Australand Property Group (ö) | 13,244 | 15 | ||
Australia & New Zealand Banking Group, Ltd. | 15,910 | 285 | ||
AXA Asia Pacific Holdings, Ltd. | 19,165 | 86 | ||
BHP Billiton, Ltd. | 28,572 | 1,197 | ||
BlueScope Steel, Ltd. | 19,509 | 212 | ||
Boart Longyear Group | 779 | 2 | ||
Caltex Australia, Ltd. | 1,463 | 18 | ||
CFS Retail Property Trust (ö) | 5,738 | 10 | ||
Challenger Financial Services Group, Ltd. | 52,252 | 95 | ||
Coca-Cola Amatil, Ltd. | 7,934 | 53 | ||
Commonwealth Bank of Australia | 3,447 | 133 | ||
Consolidated Media Holdings, Ltd. | 2,975 | 9 | ||
Crown, Ltd. | 1,670 | 15 | ||
CSL, Ltd. | 40,935 | 1,401 | ||
CSR, Ltd. | 20,744 | 49 | ||
DB RREEF Trust (ö) | 28,562 | 38 | ||
Fairfax Media, Ltd. | 21,119 | 59 | ||
Fortescue Metals Group, Ltd. (Æ) | 6,326 | 72 | ||
Goodman Fielder, Ltd. | 73,205 | 99 | ||
Goodman Group (ö) | 7,452 | 22 | ||
GPT Group (ö) | 13,500 | 29 | ||
Harvey Norman Holdings, Ltd. | 19,429 | 58 | ||
ING Industrial Fund (ö) | 1,357 | 2 | ||
Lend Lease Corp., Ltd. | 4,402 | 40 | ||
Lion Nathan, Ltd. | 1,457 | 12 | ||
Macquarie Infrastructure Group | 11,085 | 25 | ||
Macquarie Office Trust (ö) | 10,185 | 8 | ||
Mirvac Group (ö) | 6,629 | 19 | ||
Mount Gibson Iron, Ltd. (Æ) | 2,364 | 7 | ||
National Australia Bank, Ltd. | 32,416 | 823 | ||
Newcrest Mining, Ltd. | 2,485 | 70 | ||
Orica, Ltd. | 1,615 | 45 | ||
Origin Energy, Ltd. | 4,962 | 77 | ||
Oxiana, Ltd. (Æ) | 5,849 | 15 | ||
Pacific Brands, Ltd. | 9,174 | 16 | ||
PaperlinX, Ltd. | 52,265 | 86 | ||
Qantas Airways, Ltd. | 61,933 | 180 | ||
QBE Insurance Group, Ltd. | 21,037 | 452 |
Principal Amount ($) or Shares | Market Value $ | |||
Rio Tinto, Ltd. (Ñ) | 1,892 | 246 | ||
Santos, Ltd. | 15,043 | 309 | ||
Sons of Gwalia, Ltd. (Æ)(Ñ)(ß) | 8,400 | — | ||
SP Ausnet | 17,146 | 17 | ||
Stockland (ö) | 10,830 | 56 | ||
Suncorp-Metway, Ltd. | 12,909 | 161 | ||
TABCORP Holdings, Ltd. | 11,985 | 113 | ||
Telstra Corp., Ltd. | 16,703 | 68 | ||
Wesfarmers, Ltd. | 596 | 21 | ||
Westfield Group (ö) | 13,233 | 207 | ||
Westpac Banking Corp. | 13,091 | 251 | ||
Woodside Petroleum, Ltd. | 2,648 | 171 | ||
Woolworths, Ltd. | 17,785 | 417 | ||
8,249 | ||||
Austria - 0.5% | ||||
Erste Bank der Oesterreichischen Sparkassen AG | 32,183 | 2,003 | ||
Belgium - 0.5% | ||||
Colruyt SA | 436 | 115 | ||
D’ieteren SA | 138 | 38 | ||
Fortis | 10,340 | 165 | ||
Hansen Transmissions International NV (Æ) | 193,827 | 1,038 | ||
InBev NV | 2,117 | 147 | ||
KBC Groep NV (Æ) | 1,267 | 141 | ||
Nationale A Portefeuille (Æ) | 427 | 32 | ||
Solvay SA (Ñ) | 333 | 44 | ||
Umicore (Æ) | 3,616 | 179 | ||
1,899 | ||||
Bermuda - 0.9% | ||||
Benfield Group, Ltd. | 201,769 | 983 | ||
Catlin Group, Ltd. | 6,532 | 46 | ||
Esprit Holdings, Ltd. | 8,752 | 91 | ||
Giordano International, Ltd. | 47,474 | 19 | ||
Great Eagle Holdings, Ltd. | 4,000 | 12 | ||
Guoco Group, Ltd. | 2,000 | 20 | ||
Hiscox, Ltd. | 39,790 | 165 | ||
Jardine Matheson Holdings, Ltd. | 1,190 | 37 | ||
Jardine Strategic Holdings, Ltd. | 500 | 8 | ||
Li & Fung, Ltd. | 214,000 | 645 | ||
Midland Holdings, Ltd. | 17,333 | 11 | ||
Orient Overseas International, Ltd. | 5,300 | 26 | ||
Pacific Basin Shipping, Ltd. | 37,000 | 53 | ||
Seadrill, Ltd. | 30,100 | 920 | ||
Shangri-La Asia, Ltd. | 2,000 | 5 |
Non-U.S. Fund | 25 |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Vostok Gas, Ltd. | 2,278 | 214 | ||
VTech Holdings, Ltd. | 8,133 | 49 | ||
3,304 | ||||
Brazil - 0.4% | ||||
Cia Vale do Rio Doce - ADR (Æ) | 7,900 | 283 | ||
Petroleo Brasileiro SA - ADR | 4,800 | 340 | ||
Unibanco - Uniao de Bancos Brasileiros SA - GDR (Æ) | 5,670 | 720 | ||
1,343 | ||||
Canada - 1.6% | ||||
Cameco Corp. | 4,300 | 184 | ||
Canadian National Railway Co. | 23,120 | 1,112 | ||
Potash Corp. of Saskatchewan | 12,500 | 2,857 | ||
Research In Motion, Ltd. (Æ) | 16,900 | 1,976 | ||
6,129 | ||||
Cayman Islands - 0.4% | ||||
Hutchison Telecommunications International, Ltd. | 9,457 | 14 | ||
LDK Solar Co., Ltd. - ADR (Æ)(Ñ) | 43,800 | 1,659 | ||
1,673 | ||||
Czech Republic - 0.2% | ||||
Komercni Banka AS | 3,174 | 739 | ||
Denmark - 1.5% | ||||
A P Moller - Maersk A/S (Æ) | 2 | 24 | ||
Carlsberg A/S Class B (Ñ) | 15,260 | 1,474 | ||
D/S Norden A/S (Æ) | 1,825 | 197 | ||
East Asiatic Co., Ltd. A/S (Æ) | 2,925 | 203 | ||
Novo Nordisk A/S Series B Class B | 8,450 | 553 | ||
Vestas Wind Systems A/S (Æ) | 26,100 | 3,416 | ||
5,867 | ||||
Egypt - 0.3% | ||||
Orascom Telecom Holding | 16,600 | 1,062 | ||
Finland - 1.2% | ||||
Fortum OYJ | 19,667 | 999 | ||
Konecranes OYJ | 1,282 | 53 | ||
Nokia OYJ | 127,482 | 3,109 | ||
OKO Bank PLC Class A | 1,182 | 21 | ||
Oriola-KD OYJ | 3,400 | 14 | ||
Outotec OYJ | 4,374 | 279 | ||
4,475 | ||||
Principal Amount ($) or Shares | Market Value $ | |||
France - 11.8% | ||||
Air Liquide (Ñ) | 14,617 | 1,930 | ||
Alcatel-Lucent - ADR (Æ)(Ñ) | 125,840 | 760 | ||
Alstom (Ñ) | 6,428 | 1,484 | ||
Arkema | 4,547 | 257 | ||
AXA SA | 86,372 | 2,565 | ||
BNP Paribas | 24,713 | 2,239 | ||
Bouygues | 274 | 18 | ||
Carrefour SA | 24,860 | 1,408 | ||
Casino Guichard Perrachon SA (Ñ) | 1,650 | 187 | ||
Christian Dior SA | 1,328 | 137 | ||
Cie de Saint-Gobain | 2,004 | 125 | ||
CNP Assurances | 1,149 | 130 | ||
Credit Agricole SA (Ñ) | 4,635 | 95 | ||
Electricite de France | 1,253 | 119 | ||
Eramet (Æ) | 333 | 331 | ||
France Telecom SA | 23,203 | 684 | ||
Gaz de France SA (Ñ) | 32,578 | 2,094 | ||
L’Oreal SA | 10,667 | 1,161 | ||
Lafarge SA | 452 | 69 | ||
Legrand SA (Ñ) | 49,659 | 1,252 | ||
LVMH Moet Hennessy Louis Vuitton SA | 41,932 | 4,396 | ||
Nexans SA (Æ) | 532 | 66 | ||
NicOx SA (Ñ) | 204 | 3 | ||
Pernod-Ricard SA (Ñ) | 15,634 | 1,606 | ||
Rallye SA | 1,254 | 74 | ||
Rhodia SA (Æ) | 3,202 | 59 | ||
Sanofi-Aventis SA (Ñ) | 26,933 | 1,799 | ||
Schneider Electric SA (Ñ) | 28,220 | 3,048 | ||
Societe BIC SA (Ñ) | 318 | 17 | ||
Societe Generale (Ñ) | 16,168 | 1,407 | ||
Sodexho Alliance SA (Æ) | 8,598 | 565 | ||
Suez SA | 29,416 | 2,003 | ||
Suez SA (Æ) | 1,228 | — | ||
Teleperformance - GDR (Æ) | 1,666 | 61 | ||
Thales SA | 8,498 | 484 | ||
Total SA | 86,903 | 7,416 | ||
UBISOFT Entertainment (Æ) | 3,502 | 307 | ||
Unibail-Rodamco (ö) | 123 | 28 | ||
Vallourec | 3,429 | 1,203 | ||
Vivendi | 110,434 | 4,190 | ||
45,777 | ||||
Germany - 9.5% | ||||
Adidas AG (Æ) | 6,699 | 423 | ||
Allianz SE | 17,428 | 3,070 | ||
Arcandor AG (Æ)(Ñ) | 127,884 | 1,486 |
26 | Non-U.S. Fund |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Arques Industries AG (Ñ) | 4,161 | 38 | ||
BASF SE | 17,996 | 1,242 | ||
Bayer AG | 37,028 | 3,117 | ||
Bayerische Motoren Werke AG | 23,240 | 1,118 | ||
Commerzbank AG (Æ)(Ñ) | 46,628 | 1,383 | ||
Daimler AG | 6,980 | 432 | ||
Deutsche Bank AG | 2,813 | 243 | ||
Deutsche Boerse AG | 11,861 | 1,339 | ||
Deutsche Telekom AG | 60,041 | 983 | ||
E.ON AG | 16,656 | 3,361 | ||
Epcos AG | 5,832 | 96 | ||
Freenet AG (Ñ) | 4,991 | 92 | ||
GEA Group AG (Æ) | 1,212 | 43 | ||
Gildemeister AG (Æ)(Ñ) | 5,335 | 151 | ||
Hannover Rueckversicherung AG (Æ) | 4,708 | 232 | ||
Infineon Technologies AG (Æ) | 47,302 | 412 | ||
K+S AG (Æ) | 4,300 | 2,480 | ||
KUKA AG (Æ)(Ñ) | 1,974 | 64 | ||
Lanxess AG | 8,150 | 335 | ||
Linde AG (Ñ) | 22,970 | 3,230 | ||
MAN AG (Æ) | 908 | 101 | ||
Merck KGAA | 24,878 | 3,537 | ||
Metro AG | 24,289 | 1,550 | ||
Muenchener Rueckversicherungs AG | 2,472 | 433 | ||
Roth & Rau AG (Æ) | 413 | 90 | ||
RWE AG | 2,458 | 310 | ||
Salzgitter AG | 1,269 | 233 | ||
SAP AG | 20,900 | 1,094 | ||
Siemens AG | 11,136 | 1,236 | ||
Suedzucker AG (Ñ) | 5,973 | 108 | ||
Symrise AG | 49,417 | 1,074 | ||
ThyssenKrupp AG | 1,244 | 78 | ||
Tognum AG | 5,730 | 154 | ||
Volkswagen AG (Ñ) | 1,259 | 363 | ||
Vossloh AG | 607 | 79 | ||
Wacker Chemie AG (Æ) | 4,768 | 997 | ||
Wincor Nixdorf AG | 338 | 23 | ||
Wirecard AG (Æ) | 1,570 | 20 | ||
36,850 | ||||
Hong Kong - 0.5% | ||||
Bank of East Asia, Ltd. | 3,400 | 18 | ||
BOC Hong Kong Holdings, Ltd. | 50,000 | 132 | ||
Cheung Kong Holdings, Ltd. | 50,640 | 683 | ||
CLP Holdings, Ltd. | 11,000 | 94 | ||
Fubon Bank Hong Kong, Ltd. | 8,000 | 7 | ||
Hang Lung Group, Ltd. | 12,763 | 57 | ||
Hang Lung Properties, Ltd. - ADR | 8,780 | 28 |
Principal Amount ($) or Shares | Market Value $ | |||
Hang Seng Bank, Ltd. | 5,600 | 118 | ||
Henderson Land Development Co., Ltd. | 7,000 | 44 | ||
Hong Kong & China Gas Co. | 10,182 | 24 | ||
Hong Kong Exchanges and Clearing, Ltd. | 4,654 | 68 | ||
Hong Kong & Shanghai Hotels (The) (Æ) | 1,500 | 2 | ||
Hong Kong Electric Holdings | 13,500 | 81 | ||
Hopewell Holdings | 12,000 | 43 | ||
Hutchison Whampoa, Ltd. | 17,000 | 171 | ||
Hysan Development Co., Ltd. | 17,000 | 47 | ||
Link REIT (The) (ö) | 12,500 | 28 | ||
Minmetals Resources, Ltd. | 40,000 | 14 | ||
MTR Corp. | 8,500 | 27 | ||
New World Development, Ltd. | 12,000 | 24 | ||
PCCW, Ltd. | 14,000 | 9 | ||
Sun Hung Kai Properties, Ltd. | 9,667 | 131 | ||
Swire Pacific, Ltd. | 9,000 | 92 | ||
Television Broadcasts, Ltd. | 4,000 | 23 | ||
Wharf Holdings, Ltd. | 16,000 | 67 | ||
Wheelock & Co., Ltd. | 19,205 | 52 | ||
Wing Hang Bank, Ltd. | 2,500 | 33 | ||
2,117 | ||||
India - 0.3% | ||||
Infosys Technologies, Ltd. - ADR (Ñ) | 17,600 | 765 | ||
Satyam Computer Services, Ltd. - ADR (Ñ) | 20,550 | 504 | ||
1,269 | ||||
Indonesia - 0.0% | ||||
Telekomunikasi Indonesia Tbk PT - ADR | 1,750 | 56 | ||
Ireland - 0.8% | ||||
Elan Corp. PLC - ADR (Æ)(Ñ) | 60,100 | 2,137 | ||
Ryanair Holdings PLC - ADR (Æ)(Ñ) | 38,932 | 1,116 | ||
3,253 | ||||
Israel - 0.2% | ||||
Teva Pharmaceutical Industries, Ltd. - ADR (Ñ) | 20,000 | 916 | ||
Italy - 2.6% | ||||
A2A SpA (Æ)(Ñ) | 11,195 | 41 | ||
Alleanza Assicurazioni SpA | 93,388 | 1,014 | ||
Ansaldo STS SpA | 68,608 | 1,032 |
Non-U.S. Fund | 27 |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Arnoldo Mondadori Editore SpA (Æ)(Ñ) | 105,444 | 620 | ||
Assicurazioni Generali SpA | 2,865 | 110 | ||
Banca Italease SpA (Æ) | 16,985 | 162 | ||
Danieli SpA | 2,115 | 50 | ||
Enel SpA | 50,589 | 481 | ||
ENI SpA | 73,649 | 2,748 | ||
Fiat SpA (Æ)(Ñ) | 5,343 | 88 | ||
Fondiaria-Sai SpA | 1,743 | 58 | ||
Intesa Sanpaolo SpA | 209,908 | 1,199 | ||
Mediaset SpA (Ñ) | 5,955 | 39 | ||
Milano Assicurazioni SpA (Æ) | 1,241 | 6 | ||
Parmalat Finanziaria SpA (Ñ)(ß) | 12,500 | — | ||
Prysmian SpA | 6,605 | 167 | ||
Saipem SpA (Æ) | 4,801 | 226 | ||
Telecom Italia SpA | 870,781 | 1,412 | ||
Terna Rete Elettrica Nazionale SpA | 37,856 | 160 | ||
UniCredit SpA | 72,651 | 445 | ||
Unione di Banche Italiane SCPA | 1,315 | 31 | ||
10,089 | ||||
Japan - 16.6% | ||||
77 Bank, Ltd. (The) | 16,000 | 101 | ||
Aeon Credit Service Co., Ltd. | 44,700 | 560 | ||
Aisin Seiki Co., Ltd. | 2,800 | 92 | ||
Alfresa Holdings Corp. | 1,500 | 107 | ||
Alpine Electronics, Inc. | 5,000 | 53 | ||
Alps Electric Co., Ltd. | 8,800 | 91 | ||
Aoyama Trading Co., Ltd. | 1,900 | 35 | ||
Asahi Kasei Corp. | 27,000 | 141 | ||
Astellas Pharma, Inc. | 6,000 | 254 | ||
Bank of Yokohama, Ltd. (The) | 134,366 | 929 | ||
Bridgestone Corp. (Ñ) | 52,400 | 801 | ||
Calsonic Kansei Corp. | 8,000 | 32 | ||
Canon Marketing Japan, Inc. (Ñ) | 4,200 | 74 | ||
Canon, Inc. (Ñ) | 84,000 | 4,319 | ||
Central Glass Co., Ltd. | 22,000 | 90 | ||
Chuo Mitsui Trust Holdings, Inc. | 13,000 | 77 | ||
Circle K Sunkus Co., Ltd. | 3,600 | 63 | ||
COMSYS Holdings Corp. | 21,000 | 185 | ||
Dai Nippon Printing Co., Ltd. | 13,000 | 192 | ||
Daiei, Inc. (The) (Æ)(Ñ) | 7,400 | 46 | ||
Daiichi Sankyo Co., Ltd. | 2,800 | 77 | ||
Daishi Bank, Ltd. (The) | 7,000 | 31 | ||
Daiwa Securities Group, Inc. | 68,950 | 634 | ||
Denki Kagaku Kogyo K K | 12,000 | 45 | ||
Denso Corp. | 3,000 | 103 | ||
Eisai Co., Ltd. | 1,900 | 67 |
Principal Amount ($) or Shares | Market Value $ | |||
Elpida Memory, Inc. (Æ) | 17,500 | 560 | ||
Exedy Corp. | 2,600 | 68 | ||
Ezaki Glico Co., Ltd. (Ñ) | 2,000 | 23 | ||
FamilyMart Co., Ltd. | 8,600 | 352 | ||
Fanuc, Ltd. | 13,100 | 1,279 | ||
FCC Co., Ltd. | 2,300 | 35 | ||
Fuji Fire & Marine Insurance Co., Ltd. (The) | 32,000 | 85 | ||
Fuji Television Network, Inc. | 554 | 835 | ||
FUJIFILM Holdings Corp. | 4,800 | 165 | ||
Fujitsu, Ltd. | 13,000 | 97 | ||
Funai Electric Co., Ltd. | 2,900 | 74 | ||
Glory, Ltd. | 4,600 | 108 | ||
H2O Retailing Corp. (Ñ) | 13,000 | 90 | ||
Hachijuni Bank, Ltd. (The) | 25,000 | 162 | ||
Higo Bank, Ltd. (The) | 10,000 | 60 | ||
Hino Motors, Ltd. (Ñ) | 28,000 | 174 | ||
Hirose Electric Co., Ltd. (Ñ) | 8,000 | 803 | ||
Hitachi Cable, Ltd. (Æ)(Ñ) | 8,000 | 30 | ||
Hitachi Capital Corp. | 2,300 | 37 | ||
Hitachi High-Technologies Corp. (Æ) | 2,600 | 60 | ||
Hitachi Kokusai Electric, Inc. (Ñ) | 16,000 | 143 | ||
Hitachi Transport System, Ltd. | 3,700 | 47 | ||
Hitachi, Ltd. | 17,000 | 123 | ||
Hokkaido Electric Power Co., Inc. | 3,000 | 61 | ||
Hokkoku Bank, Ltd. (The) | 12,000 | 47 | ||
Honda Motor Co., Ltd. (Ñ) | 8,000 | 272 | ||
Hoya Corp. | 66,200 | 1,531 | ||
Inpex Holdings, Inc. | 181 | 2,284 | ||
ITOCHU Corp. | 16,000 | 170 | ||
Itoham Foods, Inc. | 11,000 | 54 | ||
Iyo Bank, Ltd. (The) (Ñ) | 2,000 | 23 | ||
Japan Aviation Electronics Industry, Ltd. (Ñ) | 6,000 | 53 | ||
Japan Tobacco, Inc. | 13 | 55 | ||
JFE Holdings, Inc. | 3,400 | 171 | ||
JFE Shoji Holdings, Inc. | 31,000 | 233 | ||
JGC Corp. | 11,000 | 217 | ||
Joyo Bank, Ltd. (The) (Ñ) | 266,940 | 1,297 | ||
JTEKT Corp. | 3,000 | 48 | ||
Juki Corp. Class A (Ñ) | 22,000 | 63 | ||
Kagoshima Bank, Ltd. (The) | 15,000 | 114 | ||
Kaneka Corp. (Æ) | 4,000 | 27 | ||
Kao Corp. | 103,000 | 2,701 | ||
Kawasaki Kisen Kaisha, Ltd. | 5,000 | 47 | ||
Kayaba Industry Co., Ltd. (Ñ) | 8,000 | 35 | ||
KDDI Corp. | 18 | 111 | ||
Keihin Corp. | 7,600 | 115 |
28 | Non-U.S. Fund |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Keiyo Bank, Ltd. (The) | 9,000 | 54 | ||
Keyence Corp. (Æ) | 2,066 | 492 | ||
Kintetsu World Express, Inc. | 4,200 | 107 | ||
Kobe Steel, Ltd. | 68,000 | 195 | ||
Komatsu, Ltd. | 28,300 | 789 | ||
Komori Corp. | 3,000 | 55 | ||
Kose Corp. | 60,140 | 1,342 | ||
Kyocera Corp. (Ñ) | 1,100 | 104 | ||
Kyoei Steel, Ltd. (Ñ) | 2,200 | 42 | ||
Kyowa Exeo Corp. (Æ) | 4,000 | 37 | ||
Lintec Corp. (Ñ) | 2,900 | 50 | ||
Makino Milling Machine Co., Ltd. (Ñ) | 5,000 | 32 | ||
Marubeni Corp. | 12,000 | 100 | ||
Matsushita Electric Industrial Co., Ltd. | 18,000 | 388 | ||
Matsushita Electric Works, Ltd. | 7,000 | 71 | ||
Mazda Motor Corp. | 16,000 | 83 | ||
Meiji Dairies Corp. (Ñ) | 15,000 | 77 | ||
MID Reit, Inc. (ö)(Ñ) | 180 | 587 | ||
Millea Holdings, Inc. | 5,800 | 226 | ||
Mitsubishi Corp. | 8,100 | 267 | ||
Mitsubishi Electric Corp. | 13,000 | 140 | ||
Mitsubishi Estate Co., Ltd. (Ñ) | 8,000 | 183 | ||
Mitsubishi Materials Corp. | 19,000 | 81 | ||
Mitsubishi UFJ Financial Group, Inc. | 100,630 | 892 | ||
Mitsui & Co., Ltd. | 4,000 | 88 | ||
Mitsui Fudosan Co., Ltd. | 7,000 | 150 | ||
Mitsui Mining & Smelting Co., Ltd. | 30,000 | 88 | ||
Mitsui OSK Lines, Ltd. | 9,000 | 128 | ||
Mitsui Sumitomo Insurance Group Holdings, Inc. (Æ) | 51,600 | 1,779 | ||
Mitsui-Soko Co., Ltd. (Ñ) | 114,560 | 551 | ||
Mizuho Financial Group, Inc. | 264 | 1,233 | ||
Musashino Bank, Ltd. (The) | 800 | 32 | ||
Nachi-Fujikoshi Corp. | 11,000 | 43 | ||
NEC Corp. | 20,000 | 105 | ||
NEC Electronics Corp. (Æ)(Ñ) | 5,100 | 127 | ||
New City Residence Investment Corp. (ö) | 94 | 191 | ||
Nichirei Corp. | 35,000 | 180 | ||
Nintendo Co., Ltd. | 5,000 | 2,821 | ||
Nippon Commercial Investment Corp. (ö) | 131 | 370 | ||
Nippon Express Co., Ltd. | 42,000 | 201 | ||
Nippon Kayaku Co., Ltd. (Ñ) | 18,000 | 112 | ||
Nippon Konpo Unyu Soko Co., Ltd. | 7,000 | 89 | ||
Nippon Mining Holdings, Inc. | 16,500 | 103 | ||
Nippon Oil Corp. | 43,000 | 289 |
Principal Amount ($) or Shares | Market Value $ | |||
Nippon Residential Investment Corp. (ö) | 117 | 352 | ||
Nippon Seiki Co., Ltd. (Ñ) | 2,000 | 27 | ||
Nippon Steel Corp. | 26,000 | 141 | ||
Nippon Telegraph & Telephone Corp. | 27 | 132 | ||
Nippon Yusen KK | 10,000 | 96 | ||
Nipponkoa Insurance Co., Ltd. | 239,490 | 2,077 | ||
Nissan Chemical Industries, Ltd. | 6,000 | 74 | ||
Nissan Shatai Co., Ltd. | 15,000 | 117 | ||
Nisshin Seifun Group, Inc. (Ñ) | 5,000 | 63 | ||
Nissin Kogyo Co., Ltd. | 6,300 | 96 | ||
Nomura Holdings, Inc. | 92,620 | 1,372 | ||
Nomura Research Institute, Ltd. (Æ) | 45,306 | 1,062 | ||
NTN Corp. | 12,000 | 80 | ||
NTT DoCoMo, Inc. | 35 | 51 | ||
Okinawa Electric Power Co., Inc. (The) | 600 | 30 | ||
Omron Corp. | 37,000 | 794 | ||
Onward Holdings Co., Ltd. (Ñ) | 5,000 | 53 | ||
ORIX Corp. | 890 | 127 | ||
Osaka Gas Co., Ltd. | 11,000 | 40 | ||
QP Corp. | 10,000 | 88 | ||
Resona Holdings, Inc. (Ñ) | 41 | 63 | ||
Ricoh Co., Ltd. | 97,000 | 1,750 | ||
Rohm Co., Ltd. | 1,400 | 81 | ||
San-In Godo Bank, Ltd. (The) | 3,000 | 26 | ||
Sankyo Co., Ltd. | 2,700 | 176 | ||
Seino Holdings Corp. | 6,000 | 37 | ||
Seven & I Holdings Co., Ltd. | 38,760 | 1,106 | ||
Shiga Bank, Ltd. (The) (Ñ) | 6,000 | 40 | ||
Shima Seiki Manufacturing, Ltd. - GDR (Ñ) | 1,200 | 33 | ||
Shimano, Inc. (Ñ) | 600 | 30 | ||
Shin-Etsu Chemical Co., Ltd. | 28,200 | 1,748 | ||
Shinwa Kaiun Kaisha, Ltd. | 9,000 | 49 | ||
Showa Shell Sekiyu KK | 14,300 | 157 | ||
SMC Corp. | 13,748 | 1,506 | ||
Sompo Japan Insurance, Inc. | 3,000 | 28 | ||
Sony Corp. | 13,700 | 599 | ||
Stanley Electric Co., Ltd. | 1,000 | 24 | ||
Star Micronics Co., Ltd. | 3,400 | 54 | ||
Sugi Pharmacy Co., Ltd. - GDR | 43,899 | 1,145 | ||
Sumco Corp. (Ñ) | 480 | 11 | ||
Sumitomo Bakelite Co., Ltd. (Ñ) | 198,250 | 1,081 | ||
Sumitomo Corp. | 9,400 | 124 | ||
Sumitomo Heavy Industries, Ltd. | 13,000 | 88 | ||
Sumitomo Metal Industries, Ltd. | 16,000 | 70 | ||
Sumitomo Metal Mining Co., Ltd. | 3,000 | 46 |
Non-U.S. Fund | 29 |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Sumitomo Mitsui Financial Group, Inc. (Ñ) | 22 | 166 | ||
Sumitomo Realty & Development Co., Ltd. | 2,000 | 40 | ||
Sumitomo Trust & Banking Co., Ltd. (The) | 198,033 | 1,384 | ||
Suzuken Co., Ltd. | 3,100 | 114 | ||
Suzuki Motor Corp. (Ñ) | 35,760 | 845 | ||
Takeda Pharmaceutical Co., Ltd. | 3,400 | 173 | ||
Takefuji Corp. (Ñ) | 3,260 | 45 | ||
TDK Corp. | 2,500 | 150 | ||
Teijin, Ltd. (Ñ) | 16,000 | 55 | ||
THK Co., Ltd. | 35,120 | 681 | ||
Toagosei Co., Ltd. (Æ) | 12,000 | 44 | ||
Toho Pharmaceutical Co., Ltd. (Ñ) | 7,590 | 146 | ||
Tokai Rika Co., Ltd. (Æ) | 1,800 | 37 | ||
Tokai Rubber Industries, Inc. | 8,400 | 108 | ||
Tokyo Electric Power Co., Inc. (The) | 6,400 | 165 | ||
Tokyo Gas Co., Ltd. | 117,000 | 472 | ||
Tokyo Steel Manufacturing Co., Ltd. | 7,800 | 90 | ||
Tokyu Land Corp. | 8,000 | 45 | ||
Toppan Printing Co., Ltd. | 16,000 | 176 | ||
Toshiba Machine Co., Ltd. | 16,000 | 109 | ||
Toshiba TEC Corp. | 27,000 | 169 | ||
Toyo Engineering Corp. Class A (Ñ) | 23,000 | 148 | ||
Toyo Ink Manufacturing Co., Ltd. | 5,000 | 17 | ||
Toyo Suisan Kaisha, Ltd. | 14,000 | 316 | ||
Toyota Auto Body Co., Ltd. | 5,800 | 108 | ||
Toyota Motor Corp. | 14,100 | 665 | ||
United Urban Investment Corp. (ö)(Ñ) | 80 | 360 | ||
Urban Corp. (Ñ) | 6,700 | 20 | ||
USS Co., Ltd. | 1,130 | 75 | ||
West Japan Railway Co. | 17 | 83 | ||
Yamaha Corp. | 8,400 | 162 | ||
Yamaha Motor Co., Ltd. (Ñ) | 4,800 | 90 | ||
Yamato Holdings Co., Ltd. | 29,000 | 405 | ||
Yamato Kogyo Co., Ltd. - GDR | 2,400 | 114 | ||
64,133 | ||||
Luxembourg - 0.3% | ||||
ArcelorMittal | 8,765 | 867 | ||
Millicom International Cellular SA (Æ) | 600 | 62 | ||
Oriflame Cosmetics SA (Æ) | 2,950 | 190 | ||
1,119 | ||||
Malaysia - 0.1% | ||||
Sime Darby Berhad | 86,417 | 245 | ||
Principal Amount ($) or Shares | Market Value $ | |||
Mauritius - 0.0% | ||||
Golden Agri-Resources, Ltd. | 77,176 | 51 | ||
Mexico - 0.4% | ||||
America Movil SAB de CV Series L | �� | 14,300 | 754 | |
Grupo Modelo SAB de CV | 124,300 | 625 | ||
1,379 | ||||
Netherlands - 3.9% | ||||
Akzo Nobel NV | 15,454 | 1,062 | ||
ASML Holding NV (Ñ) | 30,548 | 753 | ||
Gemalto NV (Æ) | 1,728 | 63 | ||
Heineken NV | 96,641 | 4,933 | ||
ING Groep NV | 30,673 | 978 | ||
Koninklijke Ahold NV | 37,548 | 505 | ||
Koninklijke Philips Electronics NV | 21,432 | 729 | ||
OCE NV | 4,987 | 291 | ||
OCE NV (Ñ) | 9,438 | 116 | ||
Rodamco Europe NV (ö) | 817 | 107 | ||
Royal KPN NV | 11,491 | 197 | ||
SNS Reaal | 5,355 | 104 | ||
TNT NV | 62,860 | 2,150 | ||
Unilever NV | 62,045 | 1,761 | ||
Wereldhave NV (Æ)(ö) | 170 | 18 | ||
Wolters Kluwer NV (Ñ) | 62,450 | 1,459 | ||
15,226 | ||||
Netherlands Antilles - 0.0% | ||||
Hunter Douglas NV | 1,358 | 82 | ||
Norway - 0.6% | ||||
Renewable Energy Corp. AS (Æ) | 47,050 | 1,220 | ||
StatoilHydro ASA | 29,402 | 1,096 | ||
2,316 | ||||
Papua New Guinea - 0.0% | ||||
Oil Search, Ltd. | 5,123 | 33 | ||
Portugal - 0.2% | ||||
Energias de Portugal SA | 148,542 | 775 | ||
Russia - 0.2% | ||||
Gazprom OAO - ADR | 8,400 | 487 | ||
Vimpel-Communications - ADR | 12,700 | 377 | ||
864 | ||||
30 | Non-U.S. Fund |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Singapore - 0.8% | ||||
Allgreen Properties, Ltd. | 36,950 | 27 | ||
Ascendas Real Estate Investment Trust (ö) | 4,000 | 7 | ||
CapitaCommercial Trust (ö) | 4,000 | 6 | ||
CapitaLand, Ltd. | 4,343 | 18 | ||
CapitaMall Trust (ö) | 5,643 | 12 | ||
China Aviation Oil Singapore Corp., Ltd. (Æ) | 6,000 | 7 | ||
Creative Technology, Ltd. | 3,600 | 16 | ||
DBS Group Holdings, Ltd. | 48,000 | 665 | ||
Haw Par Corp., Ltd. | 5,000 | 24 | ||
Indofood Agri Resources, Ltd. (Æ) | 9,552 | 18 | ||
Jardine Cycle & Carriage, Ltd. | 3,800 | 48 | ||
Keppel Corp., Ltd. | 14,555 | 119 | ||
NatSteel, Ltd. | 1,656 | 2 | ||
Neptune Orient Lines, Ltd. | 25,038 | 59 | ||
Oversea-Chinese Banking Corp. | 14,000 | 84 | ||
Pacific Century Regional Developments, Ltd. | 61,000 | 16 | ||
SembCorp Industries, Ltd. | 10,880 | 33 | ||
Singapore Airlines, Ltd. | 2,970 | 32 | ||
Singapore Petroleum Co., Ltd. | 14,312 | 69 | ||
Singapore Telecommunications, Ltd. | 650,000 | 1,730 | ||
United Overseas Bank, Ltd. | 5,572 | 76 | ||
United Overseas Land, Ltd. (Æ) | 6,000 | 15 | ||
3,083 | ||||
South Africa - 0.3% | ||||
Gold Fields, Ltd. - ADR (Ñ) | 57,760 | 731 | ||
MTN Group, Ltd. | 35,230 | 560 | ||
1,291 | ||||
South Korea - 0.8% | ||||
Kookmin Bank - ADR | 11,560 | 676 | ||
Samsung Electronics Co., Ltd. | 4,007 | 2,394 | ||
3,070 | ||||
Spain - 1.6% | ||||
Banco Bilbao Vizcaya Argentaria SA | 27,983 | 536 | ||
Banco Santander SA | 50,240 | 923 | ||
Bankinter SA | 1,275 | 15 | ||
Enagas | 8,237 | 233 | ||
Gamesa Corp. Tecnologica SA | 16,890 | 830 | ||
Gas Natural SDG SA | 4,754 | 277 | ||
Grifols SA | 3,659 | 117 | ||
Iberdrola Renovables (Æ) | 154,501 | 1,197 | ||
Iberdrola SA | 22,195 | 297 |
Principal Amount ($) or Shares | Market Value $ | |||
Red Electrica de Espana | 888 | 58 | ||
Repsol YPF SA | 5,271 | 208 | ||
Tecnicas Reunidas SA | 1,571 | 132 | ||
Telefonica SA | 50,624 | 1,345 | ||
Vertice Trescientos Sesenta Grados (Æ) | 4,020 | 8 | ||
6,176 | ||||
Sweden - 1.0% | ||||
Alfa Laval AB | 4,400 | 69 | ||
D Carnegie & Co. AB (Ñ) | 3,700 | 49 | ||
Hennes & Mauritz AB Series B Class B (Æ)(Ñ) | 3,075 | 167 | ||
Investor AB Class B (Æ) | 800 | 17 | ||
Kinnevik Investment AB (Æ) | 1,600 | 30 | ||
NCC AB | 1,900 | 29 | ||
Nordea Bank AB | 52,465 | 724 | ||
Peab AB | 2,000 | 14 | ||
Scania AB Class B (Æ)(Ñ) | 27,600 | 378 | ||
Skanska AB Series B Class B (Æ) | 7,800 | 112 | ||
SKF AB Class B (Ñ) | 4,600 | 72 | ||
Tele2 AB Series B Class B (Ñ) | 13,900 | 272 | ||
Telefonaktiebolaget LM Ericsson Series B Class B | 156,866 | 1,636 | ||
TeliaSonera AB (Ñ) | 8,500 | 63 | ||
Volvo AB Class B (Æ) | 12,800 | 157 | ||
3,789 | ||||
Switzerland - 7.7% | ||||
ABB, Ltd. | 13,965 | 397 | ||
Actelion, Ltd. (Ñ) | 12,826 | 687 | ||
Baloise Holding AG | 837 | 88 | ||
BKW FMB Energie AG (Æ) | 255 | 35 | ||
Bucher Industries AG (Æ) | 104 | 28 | ||
Compagnie Financiere Richemont SA Class A | 771 | 43 | ||
Credit Suisse Group | 7,176 | 330 | ||
Givaudan SA | 2,220 | 1,984 | ||
Helvetia Holding AG | 532 | 207 | ||
Julius Baer Holding AG | 49,365 | 3,334 | ||
Nestle SA | 226,930 | 10,254 | ||
Novartis AG | 30,986 | 1,706 | ||
Roche Holding AG | 32,206 | 5,801 | ||
Swatch Group AG Class B (Æ)(Ñ) | 1,037 | 259 | ||
Swiss Life Holding | 1,356 | 362 | ||
Swiss Reinsurance | 19,019 | 1,267 | ||
Syngenta AG | 2,433 | 791 | ||
UBS AG | 99,093 | 2,080 | ||
Zurich Financial Services AG | 678 | 174 | ||
29,827 | ||||
Non-U.S. Fund | 31 |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Taiwan - 0.5% | ||||
High Tech Computer Corp. | 42,000 | 941 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR (Ñ) | 81,340 | 887 | ||
1,828 | ||||
Thailand - 0.1% | ||||
Bangkok Bank PCL | 140,900 | 506 | ||
United Kingdom - 17.5% | ||||
3i Group PLC | 94,999 | 1,561 | ||
Anglo American PLC | 13,343 | 937 | ||
Antofagasta PLC | 1,661 | 22 | ||
ARM Holdings PLC | 928,840 | 1,577 | ||
AstraZeneca PLC | 9,984 | 426 | ||
Atkins WS PLC | 10,939 | 233 | ||
Autonomy Corp. PLC (Æ) | 77,800 | 1,405 | ||
Aviva PLC | 7,461 | 74 | ||
BAE Systems PLC | 160,215 | 1,412 | ||
BG Group PLC | 24,467 | 637 | ||
BHP Billiton PLC | 43,800 | 1,675 | ||
BP PLC - ADR | 23,720 | 1,650 | ||
BP PLC | 126,893 | 1,474 | ||
Brit Insurance Holdings PLC | 48,810 | 170 | ||
British Airways PLC | 239,340 | 1,026 | ||
British American Tobacco PLC | 5,055 | 175 | ||
British Energy Group PLC | 7,486 | 106 | ||
British Land Co. PLC (ö) | 3,265 | 46 | ||
BT Group PLC | 80,134 | 319 | ||
Burberry Group PLC | 73,000 | 659 | ||
Cadbury PLC | 170,601 | 2,149 | ||
Carphone Warehouse Group PLC | 268,985 | 1,060 | ||
Centrica PLC | 69,030 | 427 | ||
Charter PLC | 1,899 | 33 | ||
Close Brothers Group PLC | 26,169 | 288 | ||
Compass Group PLC | 62,129 | 470 | ||
CSR PLC (Æ) | 20,628 | 110 | ||
Davis Service Group PLC | 10,334 | 92 | ||
Dawnay Day Treveria PLC | 586,180 | 489 | ||
De La Rue PLC | 6,261 | 111 | ||
Diageo PLC | 255,650 | 4,705 | ||
Drax Group PLC (Æ) | 19,636 | 289 | ||
easyJet PLC (Æ) | 248,654 | 1,336 | ||
Eurasian Natural Resources Corp. (Æ) | 33,295 | 884 | ||
Experian Group, Ltd. | 218,071 | 1,623 | ||
Friends Provident PLC (Æ) | 8,085 | 17 | ||
GlaxoSmithKline PLC | 219,218 | 4,860 | ||
Hays PLC (Æ) | 65,267 | 118 |
Principal Amount ($) or Shares | Market Value $ | |||
HBOS PLC | 62,326 | 343 | ||
Home Retail Group PLC | 55,502 | 241 | ||
HSBC Holdings PLC | 89,584 | 1,384 | ||
IG Group Holdings PLC | 36,784 | 242 | ||
Kesa Electricals PLC | 48,962 | 154 | ||
Kingfisher PLC | 222,493 | 498 | ||
Ladbrokes PLC | 156,345 | 800 | ||
Land Securities Group PLC (ö) | 4,629 | 114 | ||
Legal & General Group PLC | 34,646 | 69 | ||
Lloyds TSB Group PLC | 32,425 | 201 | ||
Man Group PLC | 182,820 | 2,272 | ||
Michael Page International PLC | 193,709 | 902 | ||
Murata Manufacturing Co., Ltd. | 4,602 | 89 | ||
National Grid PLC | 36,961 | 486 | ||
Old Mutual PLC | 92,244 | 171 | ||
Petrofac, Ltd. | 17,172 | 253 | ||
Reckitt Benckiser Group PLC | 70,966 | 3,597 | ||
Reed Elsevier PLC | 3,794 | 44 | ||
Regus Group PLC | 101,211 | 163 | ||
Rio Tinto PLC | 6,772 | 811 | ||
Royal Bank of Scotland Group PLC | 36,058 | 154 | ||
Royal Dutch Shell PLC Class A | 82 | 3,385 | ||
Royal Dutch Shell PLC Class B | 29,389 | 1,183 | ||
SABMiller PLC | 6,207 | 142 | ||
Scottish & Southern Energy PLC | 33,029 | 923 | ||
Shire, Ltd. | 2,264 | 37 | ||
Smiths Group PLC | 73,017 | 1,580 | ||
Spectris PLC | 4,162 | 59 | ||
Stagecoach Group PLC | 1,292 | 7 | ||
Standard Chartered PLC | 20,456 | 583 | ||
Tesco PLC | 106,021 | 780 | ||
Thomson Reuters PLC (Æ) | 1,376 | 37 | ||
Tullett Prebon PLC | 20,391 | 175 | ||
Unilever PLC | 36,455 | 1,038 | ||
United Business Media PLC | 12,462 | 135 | ||
Vodafone Group PLC | 437,768 | 1,301 | ||
Vodafone Group PLC - ADR | 71,630 | 2,110 | ||
WH Smith PLC | 5,303 | 39 | ||
William Hill PLC | 197,407 | 1,259 | ||
WM Morrison Supermarkets PLC | 134,434 | 713 | ||
WPP Group PLC | 422,306 | 4,073 | ||
Xstrata PLC | 7,260 | 582 | ||
67,774 | ||||
United States - 0.9% | ||||
Dr Pepper Snapple Group, Inc. (Æ)(Ñ) | 13,874 | 291 | ||
NYSE Euronext Class A | 855 | 43 |
32 | Non-U.S. Fund |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Philip Morris International, Inc. | 8,900 | 440 | ||
Synthes, Inc. | 18,277 | 2,519 | ||
3,293 | ||||
Total Common Stocks | ||||
(cost $340,956) | 343,930 | |||
Preferred Stocks - 0.4% | ||||
Germany - 0.4% | ||||
Fresenius SE (Æ) | 769 | 66 | ||
Henkel KGaA | 36,107 | 1,439 | ||
RWE AG (Æ) | 1,316 | 133 | ||
Volkswagen AG | 115 | 17 | ||
Total Preferred Stocks | ||||
(cost $2,077) | 1,655 | |||
Notional | ||||||
Options Purchased - 0.2% | ||||||
(Number of Contracts) | ||||||
Switzerland - 0.2% | ||||||
Swiss Market Index Futures | CHF | 740 | 575 | |||
Total Options Purchased | ||||||
(cost $357) | 575 | |||||
Principal Amount ($) or Shares | Market Value $ | ||||
Warrants & Rights - 0.0% | |||||
Untied Kingdom - 0.0% | |||||
HBOS PLC (Æ) | 24,939 | 5 | |||
Total Warrants & Rights | |||||
(cost $—) | 5 | ||||
Short-Term Investments - 8.7% | |||||
United States - 8.7% | |||||
Russell Investment Company Money Market Fund | 31,527,000 | 31,527 | |||
United States Treasury Bills (ž)(§) 1.920% due 09/18/08 | 2,200 | 2,190 | |||
Total Short-Term Investments | |||||
(cost $33,718) | 33,717 | ||||
Other Securities - 7.9% | |||||
State Street Securities Lending Quality Trust (×) | 30,431,052 | 30,431 | |||
Total Other Securities | |||||
(cost $30,431) | 30,431 | ||||
Total Investments - 106.0% | |||||
(identified cost $407,539) | 410,313 | ||||
Other Assets and Liabilities, Net - (6.0%) | (23,102 | ) | |||
Net Assets - 100.0% | 387,211 | ||||
A portion of the portfolio has been fair valued as of period end.
See accompanying notes which are an integral part of the financial statements.
Non-U.S. Fund | 33 |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except contracts)
Futures Contracts (Number of Contracts) | Notional | Unrealized Appreciation (Depreciation) $ | |||||
Long Positions | |||||||
AEX Index (Netherlands) expiration date 07/08 (55) | EUR | 4,687 | (540 | ) | |||
CAC-40 Index (France) expiration date 07/08 (65) | EUR | 2,889 | (186 | ) | |||
DAX Index (Germany) expiration date 09/08 (14) | EUR | 2,268 | (220 | ) | |||
EUR STOXX 50 Index (EMU) expiration date 09/08 (119) | EUR | 4,022 | (275 | ) | |||
FTSE-100 Index (UK) expiration date 09/08 (132) | GBP | 7,455 | (507 | ) | |||
Hang Seng Index (Hong Kong) expiration date 07/08 (27) | HKD | 29,862 | (100 | ) | |||
MIB-30 (Italy) expiration date 09/08 (9) | EUR | 1,335 | (111 | ) | |||
MSCI Singapore Index expiration date 07/08 (3) | SGD | 215 | (3 | ) | |||
TOPIX Index (Japan) expiration date 09/08 (99) | JPY | 1,305,315 | (665 | ) | |||
Short Positions | |||||||
DAX Index (Germany) expiration date 09/08 (12) | EUR | 1,944 | 186 | ||||
IBEX Plus 35 Index (Spain) expiration date 07/08 (12) | EUR | 1,434 | 151 | ||||
OMX Stockholm 30 Index (Sweden) | SEK | 11,471 | 203 | ||||
SPI 200 Index (Australia) expiration date 09/08 (45) | AUD | 5,842 | 231 | ||||
Total Unrealized Appreciation | (1,836 | ) | |||||
Options Written (Number of Contracts) | Notional | Market Value $ | |||||
Switzerland | |||||||
Swiss Market Index Futures | |||||||
Sep 2008 7,273.83 Call (74) | CHF | 740 | (362 | ) | |||
Total Liability for Options Written (premiums received $357) | (362 | ) | |||||
See accompanying notes which are an integral part of the financial statements.
34 | Non-U.S. Fund |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Index Swap Contracts | ||||||||||||
Fund Receives | Counter Party | Notional Amount | Fund Pays | Termination Date | Unrealized Appreciation (Depreciation) $ | |||||||
MSCI Denmark | Merrill Lynch | DKK | 469 | 1 Month EUR LIBOR | 09/17/08 | 4 | ||||||
MSCI Denmark | Merrill Lynch | DKK | 5,673 | 1 Month EUR LIBOR | 09/17/08 | 55 | ||||||
MSCI Denmark | Merrill Lynch | DKK | 479 | 1 Month EUR LIBOR | 09/17/08 | 151 | ||||||
Total Unrealized Appreciation (Depreciation) on Open Index Swap Contracts | 210 | |||||||||||
Industry Diversification | % of Net Assets | Market Value $ | ||||
Auto and Transportation | 4.1 | 15,870 | ||||
Consumer Discretionary | 9.0 | 34,825 | ||||
Consumer Staples | 11.4 | 43,968 | ||||
Financial Services | 15.9 | 61,419 | ||||
Health Care | 7.1 | 27,514 | ||||
Information Technology | 0.6 | 2,190 | ||||
Integrated Oils | 5.2 | 20,137 | ||||
Materials and Processing | 10.7 | 41,490 | ||||
Miscellaneous | 1.3 | 5,202 | ||||
Other Energy | 1.4 | 5,403 | ||||
Producer Durables | 8.8 | 34,232 | ||||
Technology | 5.3 | 20,658 | ||||
Utilities | 8.4 | 32,677 | ||||
Options Purchased | 0.2 | 575 | ||||
Warrants & Rights | — | 5 | ||||
Short-Term Investments | 8.7 | 33,717 | ||||
Other Securities | 7.9 | 30,431 | ||||
Total Investments | 106.0 | 410,313 | ||||
Other Assets and Liabilities, Net | (6.0 | ) | (23,102 | ) | ||
Net Assets | 100.0 | 387,211 | ||||
Geographic Diversification | �� | % of Net Assets | Market Value $ | |||
Africa | 0.3 | 1,342 | ||||
Asia | 5.3 | 20,456 | ||||
Europe | 44.7 | 173,274 | ||||
Japan | 16.6 | 64,133 | ||||
Latin America | 2.0 | 7,699 | ||||
Middle East | 0.5 | 1,978 | ||||
Other Regions | 11.2 | 43,221 | ||||
United Kingdom | 17.5 | 67,779 | ||||
Other Securities | 7.9 | 30,431 | ||||
Total Investments | 106.0 | 410,313 | ||||
Other Assets and Liabilities, Net | (6.0 | ) | (23,102 | ) | ||
Net Assets | 100.0 | 387,211 | ||||
See accompanying notes which are an integral part of the financial statements.
Non-U.S. Fund | 35 |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Foreign Currency Exchange Contracts | |||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | ||||||||
USD | 374 | CHF | 381 | 07/03/08 | — | ||||||
USD | 2,872 | CHF | 2,988 | 09/17/08 | 55 | ||||||
USD | 38 | DKK | 179 | 07/01/08 | — | ||||||
USD | 2 | DKK | 9 | 07/02/08 | — | ||||||
USD | 8 | DKK | 37 | 09/17/08 | — | ||||||
USD | 16 | EUR | 10 | 07/01/08 | — | ||||||
USD | 218 | EUR | 138 | 07/01/08 | — | ||||||
USD | 25 | EUR | 16 | 07/02/08 | — | ||||||
USD | 80 | EUR | 51 | 07/02/08 | — | ||||||
USD | 66 | EUR | 42 | 07/03/08 | — | ||||||
USD | 8 | EUR | 5 | 09/17/08 | — | ||||||
USD | 77 | EUR | 50 | 09/17/08 | 1 | ||||||
USD | 154 | EUR | 100 | 09/17/08 | 2 | ||||||
USD | 540 | EUR | 350 | 09/17/08 | 9 | ||||||
USD | 618 | EUR | 400 | 09/17/08 | 9 | ||||||
USD | 764 | EUR | 500 | 09/17/08 | 20 | ||||||
USD | 784 | EUR | 500 | 09/17/08 | — | ||||||
USD | 1,005 | EUR | 650 | 09/17/08 | 15 | ||||||
USD | 1,492 | EUR | 961 | 09/17/08 | 16 | ||||||
USD | 1,534 | EUR | 989 | 09/17/08 | 16 | ||||||
USD | 4,483 | EUR | 2,900 | 09/17/08 | 64 | ||||||
USD | 14,355 | EUR | 9,300 | 09/17/08 | 230 | ||||||
USD | 16,304 | EUR | 10,550 | 09/17/08 | 241 | ||||||
USD | 19 | GBP | 10 | 07/01/08 | — | ||||||
USD | 376 | GBP | 189 | 07/01/08 | 1 | ||||||
USD | 58 | GBP | 29 | 07/02/08 | — | ||||||
USD | 102 | GBP | 51 | 07/02/08 | — | ||||||
USD | 81 | GBP | 41 | 07/03/08 | — | ||||||
USD | 768 | GBP | 392 | 09/05/08 | 9 | ||||||
USD | 881 | GBP | 450 | 09/05/08 | 11 | ||||||
USD | 1,362 | GBP | 696 | 09/05/08 | 17 | ||||||
USD | 291 | GBP | 150 | 09/17/08 | 6 | ||||||
USD | 293 | GBP | 150 | 09/17/08 | 4 | ||||||
USD | 387 | GBP | 200 | 09/17/08 | 9 | ||||||
USD | 391 | GBP | 200 | 09/17/08 | 4 | ||||||
USD | 395 | GBP | 200 | 09/17/08 | 1 | ||||||
USD | 875 | GBP | 450 | 09/17/08 | 16 | ||||||
USD | 1,041 | GBP | 531 | 09/17/08 | 11 | ||||||
USD | 1,051 | GBP | 537 | 09/17/08 | 11 | ||||||
USD | 1,439 | GBP | 740 | 09/17/08 | 26 | ||||||
USD | 2,346 | GBP | 1,201 | 09/17/08 | 32 | ||||||
USD | 8,548 | GBP | 4,400 | 09/17/08 | 165 | ||||||
USD | 9,329 | GBP | 4,800 | 09/17/08 | 176 | ||||||
USD | 23 | HKD | 183 | 09/17/08 | — | ||||||
USD | 169 | HKD | 1,319 | 09/17/08 | — | ||||||
USD | 4 | JPY | 390 | 07/01/08 | — | ||||||
USD | 12 | JPY | 1,178 | 07/01/08 | (1 | ) |
Foreign Currency Exchange Contracts | |||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | ||||||||
USD | 433 | JPY | 46,018 | 07/01/08 | 1 | ||||||
USD | 165 | JPY | 17,484 | 07/02/08 | — | ||||||
USD | 186 | JPY | 20,000 | 09/17/08 | 3 | ||||||
USD | 372 | JPY | 40,000 | 09/17/08 | 6 | ||||||
USD | 376 | JPY | 40,000 | 09/17/08 | 2 | ||||||
USD | 466 | JPY | 50,000 | 09/17/08 | 7 | ||||||
USD | 469 | JPY | 50,000 | 09/17/08 | 4 | ||||||
USD | 557 | JPY | 60,000 | 09/17/08 | 10 | ||||||
USD | 706 | JPY | 75,000 | 09/17/08 | 3 | ||||||
USD | 752 | JPY | 80,000 | 09/17/08 | 4 | ||||||
USD | 845 | JPY | 90,000 | 09/17/08 | 6 | ||||||
USD | 1,058 | JPY | 110,000 | 09/17/08 | (18 | ) | |||||
USD | 2,118 | JPY | 225,000 | 09/17/08 | 10 | ||||||
USD | 2,997 | JPY | 322,132 | 09/17/08 | 50 | ||||||
USD | 3,063 | JPY | 325,000 | 09/17/08 | 11 | ||||||
USD | 4,710 | JPY | 500,000 | 09/17/08 | 19 | ||||||
USD | 5,408 | JPY | 575,000 | 09/17/08 | 30 | ||||||
USD | 14,042 | NOK | 73,277 | 09/17/08 | 234 | ||||||
USD | 16 | SEK | 100 | 09/17/08 | — | ||||||
USD | 103 | SEK | 623 | 09/17/08 | — | ||||||
USD | 138 | SEK | 841 | 09/17/08 | 1 | ||||||
USD | 1 | SGD | 2 | 07/01/08 | — | ||||||
USD | 1 | SGD | 1 | 09/17/08 | — | ||||||
USD | 29 | SGD | 40 | 09/17/08 | — | ||||||
AUD | 78 | USD | 75 | 07/01/08 | — | ||||||
AUD | 176 | USD | 166 | 09/17/08 | (1 | ) | |||||
AUD | 2,238 | USD | 2,083 | 09/17/08 | (39 | ) | |||||
CHF | 266 | USD | 260 | 07/01/08 | — | ||||||
CHF | 107 | USD | 103 | 09/17/08 | (2 | ) | |||||
CHF | 345 | USD | 333 | 09/17/08 | (5 | ) | |||||
CHF | 603 | USD | 583 | 09/17/08 | (8 | ) | |||||
DKK | 9 | USD | 2 | 07/01/08 | — | ||||||
DKK | 3,442 | USD | 712 | 09/17/08 | (11 | ) | |||||
EUR | 15 | USD | 23 | 07/01/08 | (1 | ) | |||||
EUR | 29 | USD | 46 | 07/01/08 | — | ||||||
EUR | 51 | USD | 81 | 07/01/08 | — | ||||||
EUR | 219 | USD | 345 | 07/01/08 | — | ||||||
EUR | 626 | USD | 986 | 07/01/08 | 1 | ||||||
EUR | 34 | USD | 53 | 07/02/08 | — | ||||||
EUR | 104 | USD | 164 | 07/02/08 | — | ||||||
EUR | 286 | USD | 451 | 07/02/08 | 1 | ||||||
EUR | 100 | USD | 154 | 09/17/08 | (3 | ) | |||||
EUR | 100 | USD | 155 | 09/17/08 | (2 | ) | |||||
EUR | 100 | USD | 157 | 09/17/08 | — | ||||||
EUR | 100 | USD | 154 | 09/17/08 | (3 | ) | |||||
EUR | 150 | USD | 235 | 09/17/08 | — | ||||||
EUR | 300 | USD | 467 | 09/17/08 | (4 | ) |
See accompanying notes which are an integral part of the financial statements.
36 | Non-U.S. Fund |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Foreign Currency Exchange Contracts | |||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | ||||||||
EUR | 400 | USD | 619 | 09/17/08 | (9 | ) | |||||
EUR | 400 | USD | 618 | 09/17/08 | (10 | ) | |||||
EUR | 400 | USD | 617 | 09/17/08 | (10 | ) | |||||
EUR | 600 | USD | 922 | 09/17/08 | (19 | ) | |||||
EUR | 1,300 | USD | 2,008 | 09/17/08 | (30 | ) | |||||
EUR | 2,300 | USD | 3,551 | 09/17/08 | (56 | ) | |||||
EUR | 5,472 | USD | 8,444 | 09/17/08 | (137 | ) | |||||
EUR | 9,750 | USD | 15,077 | 09/17/08 | (212 | ) | |||||
GBP | 57 | USD | 114 | 07/01/08 | — | ||||||
GBP | 75 | USD | 149 | 07/01/08 | (1 | ) | |||||
GBP | 18 | USD | 35 | 07/02/08 | — | ||||||
GBP | 13 | USD | 25 | 07/03/08 | — | ||||||
GBP | 769 | USD | 1,502 | 09/05/08 | (22 | ) | |||||
GBP | 769 | USD | 1,502 | 09/05/08 | (22 | ) | |||||
GBP | 50 | USD | 97 | 09/17/08 | (2 | ) | |||||
GBP | 100 | USD | 196 | 09/17/08 | (2 | ) | |||||
GBP | 100 | USD | 194 | 09/17/08 | (4 | ) | |||||
GBP | 100 | USD | 196 | 09/17/08 | (2 | ) | |||||
GBP | 150 | USD | 293 | 09/17/08 | (4 | ) | |||||
GBP | 150 | USD | 291 | 09/17/08 | (6 | ) | |||||
GBP | 150 | USD | 294 | 09/17/08 | (3 | ) | |||||
GBP | 250 | USD | 486 | 09/17/08 | (9 | ) | |||||
GBP | 300 | USD | 583 | 09/17/08 | (11 | ) | |||||
GBP | 700 | USD | 1,358 | 09/17/08 | (28 | ) | |||||
GBP | 2,405 | USD | 4,671 | 09/17/08 | (90 | ) | |||||
GBP | 3,350 | USD | 6,510 | 09/17/08 | (123 | ) | |||||
HKD | 149 | USD | 19 | 07/01/08 | — | ||||||
JPY | 9,590 | USD | 89 | 07/01/08 | (1 | ) | |||||
JPY | 25,078 | USD | 236 | 07/02/08 | — | ||||||
JPY | 21,359 | USD | 201 | 07/03/08 | — | ||||||
JPY | 10,000 | USD | 94 | 09/17/08 | — | ||||||
JPY | 14,903 | USD | 139 | 09/17/08 | (2 | ) | |||||
JPY | 20,000 | USD | 191 | 09/17/08 | 2 | ||||||
JPY | 30,000 | USD | 279 | 09/17/08 | (5 | ) | |||||
JPY | 40,000 | USD | 375 | 09/17/08 | (3 | ) | |||||
JPY | 50,000 | USD | 466 | 09/17/08 | (7 | ) | |||||
JPY | 60,000 | USD | 562 | 09/17/08 | (5 | ) | |||||
JPY | 80,000 | USD | 766 | 09/17/08 | 9 | ||||||
JPY | 170,000 | USD | 1,596 | 09/17/08 | (12 | ) | |||||
JPY | 416,901 | USD | 3,901 | 09/17/08 | (42 | ) | |||||
JPY | 755,000 | USD | 7,113 | 09/17/08 | (27 | ) | |||||
NOK | 200 | USD | 40 | 07/01/08 | — | ||||||
NOK | 2,436 | USD | 468 | 09/17/08 | (6 | ) | |||||
NOK | 2,478 | USD | 477 | 09/17/08 | (6 | ) | |||||
SEK | 13 | USD | 4 | 07/01/08 | 1 | ||||||
SEK | 15,377 | USD | 2,539 | 09/17/08 | (4 | ) | |||||
SGD | 1,171 | USD | 855 | 09/17/08 | (9 | ) |
Foreign Currency Exchange Contracts | |||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | ||||||||
ZAR | 1,122 | USD | 140 | 07/01/08 | (4 | ) | |||||
ZAR | 1,223 | USD | 156 | 07/02/08 | (1 | ) | |||||
548 | |||||||||||
See accompanying notes which are an integral part of the financial statements.
Non-U.S. Fund | 37 |
Table of Contents
Russell Investment Funds
Non-U.S. Fund
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Categories | % of Assets | ||
Australia | 2.1 | ||
Austria | 0.5 | ||
Belgium | 0.5 | ||
Bermuda | 0.9 | ||
Brazil | 0.4 | ||
Canada | 1.6 | ||
Cayman Islands | 0.4 | ||
Czech Republic | 0.2 | ||
Denmark | 1.5 | ||
Egypt | 0.3 | ||
Finland | 1.2 | ||
France | 11.8 | ||
Germany | 9.5 | ||
Hong Kong | 0.5 | ||
India | 0.3 | ||
Indonesia | — | * | |
Ireland | 0.8 | ||
Israel | 0.2 | ||
Italy | 2.6 | ||
Japan | 16.6 | ||
Luxembourg | 0.3 | ||
Malaysia | 0.1 | ||
Mauritius | — | * | |
Mexico | 0.4 | ||
Netherlands | 3.9 | ||
Netherlands Antilles | — | * | |
Norway | 0.6 | ||
Papua New Guinea | — | * | |
Portugal | 0.2 | ||
Russia | 0.2 | ||
Singapore | 0.8 | ||
South Africa | 0.3 | ||
South Korea | 0.8 | ||
Spain | 1.6 | ||
Sweden | 1.0 | ||
Switzerland | 7.7 | ||
Taiwan | 0.5 | ||
Thailand | 0.1 | ||
United Kingdom | 17.5 | ||
United States | 0.9 | ||
Preferred Stocks | 0.4 | ||
Options Purchased | 0.2 | ||
Warrants & Rights | — | * |
Categories | % of Assets | ||
Short-Term Investments | 8.7 | ||
Other Securities | 7.9 | ||
Total Investments | 106.0 | ||
Other Assets and Liabilities Net | (6.0 | ) | |
100.0 | |||
Futures Contracts | (0.5 | ) | |
Options Written | (0.1 | ) | |
Foreign Currency Exchange Contracts | 0.1 | ||
Index Swap Contracts | 0.1 |
* | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
38 | Non-U.S. Fund |
Table of Contents
Real Estate Securities Fund
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value | ||||||
January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
June 30, 2008 | $ | 967.40 | $ | 1,020.29 | ||
Expenses Paid During Period* | $ | 4.50 | $ | 4.62 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.92% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
Real Estate Securities Fund | 39 |
Table of Contents
Russell Investment Funds
Real Estate Securities Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Common Stocks - 94.9% | ||||
Apartments - 14.5% | ||||
American Campus Communities, Inc. (ö)(Ñ) | 86,452 | 2,407 | ||
Apartment Investment & Management Co. Class A (ö)(Ñ) | 81,602 | 2,779 | ||
AvalonBay Communities, Inc. (ö)(Ñ) | 192,784 | 17,189 | ||
Boardwalk Real Estate Investment Trust (ö) | 11,022 | 412 | ||
BRE Properties, Inc. Class A (ö)(Ñ) | 153,678 | 6,651 | ||
Camden Property Trust (ö)(Ñ) | 167,950 | 7,433 | ||
Deutsche Wohnen AG | 7,747 | 117 | ||
Equity Residential (ö)(Ñ) | 460,064 | 17,607 | ||
Essex Property Trust, Inc. (ö)(Ñ) | 64,787 | 6,900 | ||
Mid-America Apartment Communities, Inc. (ö) | 39,200 | 2,001 | ||
Post Properties, Inc. (ö)(Ñ) | 78,950 | 2,349 | ||
UDR, Inc. (ö)(Ñ) | 92,599 | 2,072 | ||
67,917 | ||||
Diversified - 9.6% | ||||
British Land Co. PLC (ö) | 27,727 | 391 | ||
Canadian Real Estate Investment Trust (ö) | 8,663 | 249 | ||
CapitaLand, Ltd. | 93,000 | 390 | ||
Castellum AB (Ñ) | 9,086 | 87 | ||
Country Garden Holdings Co., Ltd. (Ñ) | 295,319 | 192 | ||
Dexus Property Group (ö)(Ñ) | 230,935 | 305 | ||
Forest City Enterprises, Inc. Class A (Ñ) | 5,093 | 164 | ||
GPT Group (ö)(Ñ) | 61,557 | 131 | ||
Great Eagle Holdings, Ltd. | 224,286 | 662 | ||
Henderson Land Development Co., Ltd. | 147,336 | 918 | ||
Hysan Development Co., Ltd. | 121,264 | 333 | ||
iStar Financial, Inc. (ö)(Ñ) | 61,000 | 806 | ||
Kenedix Realty Investment Corp. Class A (ö) | 23 | 136 | ||
Keppel Land, Ltd. (Æ)(Ñ) | 18,000 | 66 | ||
Kerry Properties, Ltd. | 38,500 | 202 | ||
Klepierre - GDR (ö) | 1,585 | 80 | ||
Land Securities Group PLC (ö) | 60,424 | 1,483 | ||
Mirvac Group (ö)(Ñ) | 143,406 | 407 | ||
Mitsubishi Estate Co., Ltd. (Ñ) | 131,000 | 2,998 | ||
Mitsui Fudosan Co., Ltd. | 131,900 | 2,820 | ||
New World China Land, Ltd. (Ñ) | 432,435 | 224 | ||
Segro PLC (ö) | 30,374 | 238 | ||
Sino Land Co. (Ñ) | 93,481 | 186 |
Principal Amount ($) or Shares | Market Value $ | |||
Sponda OYJ | 2,204 | 19 | ||
Stockland (ö)(Ñ) | 59,672 | 308 | ||
Sumitomo Realty & Development Co., Ltd. | 37,000 | 735 | ||
Sun Hung Kai Properties, Ltd. | 112,284 | 1,524 | ||
Suntec Real Estate Investment Trust (ö) | 110,000 | 110 | ||
Unibail-Rodamco (ö)(Ñ) | 9,498 | 2,197 | ||
Vornado Realty Trust (ö)(Ñ) | 271,084 | 23,855 | ||
Washington Real Estate Investment Trust (ö)(Ñ) | 89,200 | 2,680 | ||
Wharf Holdings, Ltd. | 51,358 | 215 | ||
45,111 | ||||
Free Standing Retail - 0.3% | ||||
National Retail Properties, Inc. (ö) | 40,700 | 851 | ||
Realty Income Corp. (ö)(Ñ) | 33,400 | 760 | ||
1,611 | ||||
Health Care - 9.0% | ||||
Cogdell Spencer, Inc. (ö)(Ñ) | 21,800 | 354 | ||
HCP, Inc. (ö) | 158,300 | 5,035 | ||
Health Care REIT, Inc. (ö)(Ñ) | 151,200 | 6,728 | ||
Healthcare Realty Trust, Inc. (ö)(Ñ) | 34,100 | 811 | ||
LTC Properties, Inc. (ö) | 49,950 | 1,277 | ||
Medical Properties Trust, Inc. (ö)(Ñ) | 104,304 | 1,056 | ||
Nationwide Health Properties, Inc. (ö)(Ñ) | 359,350 | 11,316 | ||
Omega Healthcare Investors, Inc. (ö) | 140,651 | 2,342 | ||
Senior Housing Properties Trust (ö) | 224,790 | 4,390 | ||
Ventas, Inc. (ö)(Ñ) | 212,600 | 9,050 | ||
42,359 | ||||
Industrial - 7.8% | ||||
AMB Property Corp. (ö)(Ñ) | 160,200 | 8,071 | ||
DCT Industrial Trust, Inc. (ö)(Ñ) | 396,300 | 3,281 | ||
EastGroup Properties, Inc. (ö)(Ñ) | 10,417 | 447 | ||
First Potomac Realty Trust (ö)(Ñ) | 62,800 | 957 | ||
Goodman Group (ö)(Ñ) | 50,648 | 150 | ||
Prologis (ö)(Ñ) | 437,951 | 23,803 | ||
36,709 | ||||
Lodging/Resorts - 4.4% | ||||
Ashford Hospitality Trust, Inc. (ö) | 125,800 | 581 | ||
DiamondRock Hospitality Co. (ö)(Ñ) | 178,800 | 1,947 | ||
Hospitality Properties Trust (ö) | 12,000 | 294 | ||
Host Hotels & Resorts, Inc. (ö)(Ñ) | 1,028,311 | 14,036 | ||
Shangri-La Asia, Ltd. | 39,234 | 92 |
40 | Real Estate Securities Fund |
Table of Contents
Russell Investment Funds
Real Estate Securities Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Starwood Hotels & Resorts Worldwide, Inc. (Ñ) | 93,082 | 3,730 | ||
Sunstone Hotel Investors, Inc. (ö)(Ñ) | 5,007 | 83 | ||
20,763 | ||||
Manufactured Homes - 0.6% | ||||
Equity Lifestyle Properties, Inc. (ö)(Ñ) | 62,970 | 2,771 | ||
Mixed Industrial/Office - 2.1% | ||||
Liberty Property Trust (ö)(Ñ) | 224,244 | 7,433 | ||
PS Business Parks, Inc. (ö) | 43,642 | 2,252 | ||
9,685 | ||||
Office - 12.4% | ||||
Alexandria Real Estate Equities, Inc. (ö)(Ñ) | 60,700 | 5,909 | ||
Beni Stabili SpA (Æ) | 101,793 | 101 | ||
BioMed Realty Trust, Inc. (ö)(Ñ) | 210,250 | 5,157 | ||
Boston Properties, Inc. (ö)(Ñ) | 204,689 | 18,467 | ||
Brandywine Realty Trust (ö) | 139,781 | 2,203 | ||
Brookfield Properties Corp. | 168,577 | 2,999 | ||
CapitaCommercial Trust (ö)(Ñ) | 227,000 | 319 | ||
Commonwealth Property Office Fund (ö) | 159,303 | 189 | ||
Corporate Office Properties Trust SBI MD (ö) | 57,400 | 1,971 | ||
Derwent London PLC (ö) | 25,975 | 522 | ||
Douglas Emmett, Inc. (ö)(Ñ) | 53,106 | 1,167 | ||
Great Portland Estates PLC (ö)(Ñ) | 95,504 | 643 | ||
Hongkong Land Holdings, Ltd. (Ñ) | 331,000 | 1,403 | ||
HRPT Properties Trust (ö) | 153,200 | 1,037 | ||
ICADE (Æ)(ö) | 4,340 | 507 | ||
Japan Real Estate Investment Corp. Class A (ö) | 21 | 221 | ||
Kilroy Realty Corp. (ö) | 46,600 | 2,192 | ||
Mack-Cali Realty Corp. (ö) | 62,600 | 2,139 | ||
Maguire Properties, Inc. (ö)(Ñ) | 44,632 | 543 | ||
Nomura Real Estate Office Fund, Inc. Class A (ö)(Ñ) | 18 | 135 | ||
Norwegian Property ASA(Ñ) | 14,059 | 33 | ||
NTT Urban Development Corp. | 179 | 234 | ||
SL Green Realty Corp. (ö) | 112,354 | 9,294 | ||
Societe Immobiliere de Location pour l’Industrie et le Commerce (ö) | 942 | 118 | ||
Tishman Speyer Office Fund (ö) | 125,133 | 164 | ||
Tokyo Tatemono Co., Ltd. (Ñ) | 36,000 | 233 | ||
57,900 | ||||
Principal Amount ($) or Shares | Market Value $ | |||
Regional Malls - 15.7% | ||||
CBL & Associates Properties, Inc. (ö)(Ñ) | 54,200 | 1,238 | ||
General Growth Properties, Inc. (ö)(Ñ) | 476,681 | 16,698 | ||
Macerich Co. (The) (ö)(Ñ) | 144,429 | 8,973 | ||
Simon Property Group, Inc. (ö) | 423,557 | 38,074 | ||
Taubman Centers, Inc. (ö)(Ñ) | 146,250 | 7,115 | ||
Westfield Group (ö)(Ñ) | 107,972 | 1,685 | ||
73,783 | ||||
Self Storage - 5.0% | ||||
Extra Space Storage, Inc. (ö)(Ñ) | 154,550 | 2,374 | ||
Public Storage (ö)(Ñ) | 257,080 | 20,770 | ||
Safestore Holdings, Ltd. | 41,112 | 121 | ||
23,265 | ||||
Shopping Centers - 10.3% | ||||
Acadia Realty Trust (ö)(Ñ) | 5,241 | 121 | ||
Citycon OYJ (Æ) | 18,725 | 95 | ||
Corio NV (ö) | 9,115 | 712 | ||
Developers Diversified Realty Corp. (ö) | 232,200 | 8,060 | ||
Eurocommercial Properties NV (ö) | 4,274 | 204 | ||
Federal Realty Investment Trust (ö)(Ñ) | 192,903 | 13,310 | ||
Hammerson PLC (ö) | 39,616 | 704 | ||
Kimco Realty Corp. (ö)(Ñ) | 190,500 | 6,576 | ||
Kite Realty Group Trust (ö) | 85,800 | 1,073 | ||
Liberty International PLC (ö)(Ñ) | 14,539 | 250 | ||
Mercialys SA (ö) | 4,833 | 213 | ||
Primaris Retail Real Estate Investment Trust (ö) | 6,754 | 121 | ||
Regency Centers Corp. (ö)(Ñ) | 208,005 | 12,297 | ||
Saul Centers, Inc. (ö) | 9,500 | 446 | ||
Tanger Factory Outlet Centers (ö)(Ñ) | 118,550 | 4,260 | ||
48,442 | ||||
Specialty - 3.2% | ||||
Digital Realty Trust, Inc. (ö)(Ñ) | 236,232 | 9,664 | ||
DuPont Fabros Technology, Inc. (ö)(Ñ) | 70,000 | 1,305 | ||
Plum Creek Timber Co., Inc. (ö)(Ñ) | 56,349 | 2,407 | ||
Rayonier, Inc. (ö)(Ñ) | 35,782 | 1,519 | ||
14,895 | ||||
Total Common Stocks | ||||
(cost $389,176) | 445,211 | |||
Real Estate Securities Fund | 41 |
Table of Contents
Russell Investment Funds
Real Estate Securities Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | ||||
Short-Term Investments - 5.0% | |||||
Russell Investment Company | 23,256,000 | 23,256 | |||
Total Short-Term Investments | |||||
(cost $23,256) | 23,256 | ||||
Other Securities - 23.7% | |||||
State Street Securities Lending Quality Trust (×) | 111,278,095 | 111,278 | |||
Total Other Securities | |||||
(cost $111,278) | 111,278 | ||||
Total Investments - 123.6% | |||||
(identified cost $523,710) | 579,745 | ||||
Other Assets and Liabilities, Net - (23.6%) | (110,704 | ) | |||
Net Assets - 100.0% | 469,041 | ||||
See accompanying notes which are an integral part of the financial statements.
42 | Real Estate Securities Fund |
Table of Contents
Russell Investment Funds
Real Estate Securities Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Foreign Currency Exchange Contracts | ||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | |||||||
USD | 6 | AUD | 7 | 07/01/08 | — | |||||
USD | 8 | AUD | 8 | 07/02/08 | — | |||||
USD | 64 | AUD | 67 | 07/02/08 | — | |||||
USD | 3 | CAD | 3 | 07/02/08 | — | |||||
USD | 1 | CAD | 1 | 07/03/08 | — | |||||
USD | 13 | CAD | 14 | 07/03/08 | — | |||||
USD | 4 | EUR | 2 | 07/01/08 | — | |||||
USD | 33 | EUR | 21 | 07/01/08 | — | |||||
USD | 4 | EUR | 3 | 07/02/08 | — | |||||
USD | 22 | EUR | 14 | 07/02/08 | — | |||||
USD | 24 | EUR | 15 | 07/02/08 | — | |||||
USD | 13 | JPY | 1,388 | 07/01/08 | — | |||||
USD | 9 | JPY | 966 | 07/02/08 | — | |||||
USD | 42 | JPY | 4,474 | 07/02/08 | — | |||||
USD | 8 | SGD | 11 | 07/01/08 | — | |||||
AUD | 4 | USD | 3 | 07/01/08 | — |
Foreign Currency Exchange Contracts | ||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | |||||||
AUD | 1 | USD | 1 | 07/02/08 | — | |||||
EUR | 2 | USD | 2 | 07/01/08 | — | |||||
EUR | 6 | USD | 10 | 07/01/08 | — | |||||
HKD | 48 | USD | 6 | 07/02/08 | — | |||||
HKD | 97 | USD | 12 | 07/02/08 | — | |||||
HKD | 109 | USD | 14 | 07/02/08 | — | |||||
HKD | 182 | USD | 23 | 07/02/08 | — | |||||
JPY | 3,358 | USD | 32 | 07/02/08 | — | |||||
SGD | 20 | USD | 15 | 07/02/08 | — | |||||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | — | |||||||||
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Categories | % of Net Assets | ||
Apartments | 14.5 | ||
Diversified | 9.6 | ||
Free Standing Retail | 0.3 | ||
Health Care | 9.0 | ||
Industrial | 7.8 | ||
Lodging/Resorts | 4.4 | ||
Manufactured Homes | 0.6 | ||
Mixed Industrial/Office | 2.1 | ||
Office | 12.4 | ||
Regional Malls | 15.7 | ||
Self Storage | 5.0 | ||
Shopping Centers | 10.3 | ||
Specialty | 3.2 | ||
Short-Term Investments | 5.0 | ||
Other Securities | 23.7 | ||
Total Investments | 123.6 | ||
Other Assets and Liabilities, Net | (23.6 | ) | |
100.0 | |||
Foreign Currency Exchange Contracts | — | * |
* | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Real Estate Securities Fund | 43 |
Table of Contents
Core Bond Fund
Shareholder Expense Example — June 30, 2008 (Unaudited)
Fund Expenses
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Semiannual Report. Please refer to this information when reviewing the Expense Example for a Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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, 2008 to June 30, 2008.
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.
Actual Performance | Hypothetical Performance (5% return before expenses) | |||||
Beginning Account Value | ||||||
January 1, 2008 | $ | 1,000.00 | $ | 1,000.00 | ||
Ending Account Value | ||||||
June 30, 2008 | $ | 990.10 | $ | 1,021.38 | ||
Expenses Paid During Period* | $ | 3.46 | $ | 3.52 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.70% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher. |
44 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Long-Term Investments - 96.3% | ||||
Asset-Backed Securities - 3.9% | ||||
Accredited Mortgage Loan Trust (Ê) | ||||
Series 2004-2 Class A2 | 39 | 17 | ||
ACE Securities Corp. (Ê) | ||||
Series 2003-OP1 Class M2 | 44 | 38 | ||
Series 2005-SD3 Class A | 205 | 187 | ||
Aegis Asset Backed Securities Trust (Ê) | ||||
Series 2003-3 Class M2 | 110 | 64 | ||
American Express Credit | ||||
Series 2004-C Class C | 32 | 31 | ||
Ameriquest Mortgage Securities, Inc. (Ê) | ||||
Series 2002-D Class M1 | 90 | 63 | ||
Series 2004-R8 Class A5 | 20 | 20 | ||
Series 2004-R10 Class A5 | — | — | ||
Bank of America Credit Card Trust (Ê) | ||||
Series 2008-A1 Class A1 | 200 | 200 | ||
Bayview Financial Acquisition Trust | ||||
Series 2006-A Class 1A3 | 190 | 159 | ||
CIT Mortgage Loan Trust (Ê)(Å) | ||||
Series 2007-1 Class 2A1 | 383 | 345 | ||
Series 2007-1 Class 2A2 | 130 | 85 | ||
Series 2007-1 Class 2A3 | 180 | 90 | ||
Countrywide Asset-Backed Certificates | ||||
Series 2004-13 Class AF3 | 5 | 5 | ||
Series 2004-AB2 Class M3 (Ê) | 95 | 70 | ||
Series 2004-BC1 Class M1 (Ê) | 95 | 72 |
Principal Amount ($) or Shares | Market Value $ | |||
Series 2006-11 Class 1AF4 | 170 | 121 | ||
Countrywide Home Equity Loan Trust (Ê) | ||||
Series 2006-HW Class 2A1B | 605 | 481 | ||
First Franklin Mortgage Loan | ||||
Series 2006-FF1 Class A3 | 174 | 167 | ||
GMAC Mortgage Corp. Loan Trust | ||||
Series 2007-HE3 Class 2A1 | 87 | 61 | ||
GSAA Trust | ||||
Series 2006-2 Class 2A3 (Ê) | 320 | 195 | ||
Series 2006-4 Class 1A2 | 224 | 141 | ||
Series 2006-4 Class 3A1 | 1,525 | 1,191 | ||
GSAMP Trust (Ê) | ||||
Series 2003-HE2 Class M1 | 96 | 81 | ||
Series 2004-SEA Class A2A | 43 | 42 | ||
HFC Home Equity Loan Asset Backed Certificates (Ê) | ||||
Series 2005-1 Class A | 205 | 181 | ||
Series 2007-1 Class AS | 893 | 778 | ||
Series 2007-3 Class APT | 393 | 332 | ||
HSI Asset Securitization Corp. Trust (Ê) | ||||
Series 2006-HE2 Class 2A1 | 58 | 56 | ||
Indymac Residential Asset Backed Trust (Ê) | ||||
Series 2006-H2 Class A | 402 | 242 | ||
Lehman XS Trust (Ê) | ||||
Series 2005-1 Class 2A2 | 98 | 72 | ||
Series 2006-2N Class 1A2 | 222 | 129 | ||
Series 2006-16N Class A1A | 144 | 137 |
Core Bond Fund | 45 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Series 2007-4N Class 3A2A | 894 | 645 | ||
Long Beach Mortgage Loan Trust (Ê) | ||||
Series 2004-4 Class 1A1 | 5 | 4 | ||
Series 2006-9 Class 2A1 | 442 | 432 | ||
Mastr Asset Backed Securities Trust (Ê) | ||||
Series 2003-WMC Class M2 | 57 | 34 | ||
Series 2006-WMC Class A4 | 850 | 405 | ||
Morgan Stanley ABS Capital I (Ê) | ||||
Series 2003-NC8 Class M3 | 33 | 23 | ||
Series 2006-HE7 Class A2A | 412 | 407 | ||
New Century Home Equity Loan Trust (Ê) | ||||
Series 2004-4 Class M2 | 215 | 175 | ||
Option One Mortgage Loan Trust (Ê) | ||||
Series 2003-2 Class M2 | 44 | 22 | ||
Series 2003-3 Class M3 | 38 | 12 | ||
Series 2003-4 Class M2 | 29 | 17 | ||
Park Place Securities, Inc. (Ê) | ||||
Series 2005-WCW Class M1 | 210 | 164 | ||
Popular ABS Mortgage Pass-Through Trust | ||||
Series 2005-6 Class A3 | 230 | 230 | ||
Renaissance Home Equity Loan Trust | ||||
Series 2005-1 Class M1 | 80 | 59 | ||
Series 2005-2 Class AF4 | 85 | 78 | ||
Series 2006-1 Class AF6 | 175 | 145 | ||
Residential Asset Mortgage Products, Inc. | ||||
Series 2003-RS1 Class AI6A | 174 | 148 | ||
Series 2006-RZ4 Class A1A (Ê) | 497 | 466 |
Principal Amount ($) or Shares | Market Value $ | |||
Residential Asset Securities Corp. | ||||
Series 2003-KS2 Class MI1 | 367 | 279 | ||
Series 2003-KS2 Class MI3 | 70 | 35 | ||
Series 2006-KS9 Class AI1 (Ê) | 114 | 113 | ||
Series 2007-KS2 Class AI1 (Ê) | 309 | 295 | ||
SBI Heloc Trust (Ê)(Þ) | ||||
Series 2006-1A Class 1A2A | 87 | 83 | ||
SLM Student Loan Trust (Ê) | ||||
Series 2007-3 Class A1 | 451 | 449 | ||
Series 2008-2 Class A1 | 98 | 97 | ||
Series 2008-7 Class A2 | 2,800 | 2,800 | ||
Soundview Home Equity Loan Trust | ||||
Series 2006-WF1 Class A2 | 290 | 284 | ||
Structured Asset Investment Loan Trust (Ê) | ||||
Series 2005-3 Class M2 | 120 | 82 | ||
Structured Asset Securities Corp. | ||||
Series 2004-19X Class A2 | 20 | 20 | ||
Series 2006-BC3 Class A2 (Ê) | 142 | 139 | ||
Series 2007-BC3 Class 2A2 (Ê) 2.623% due 08/25/09 | 650 | 559 | ||
VTB 24 Capital PLC (Ê) | ||||
3.497% due 12/07/09 | 100 | 97 | ||
14,651 | ||||
Corporate Bonds and Notes - 19.2% | ||||
Ace Capital Trust II | ||||
9.700% due 04/01/30 | 175 | 190 | ||
Allied Waste NA, Inc. | ||||
Series B | 90 | 90 | ||
Allstate Life Global Funding Trusts | ||||
5.375% due 04/30/13 | 200 | 199 | ||
American Electric Power Co., Inc. | ||||
Series C | 35 | 35 |
46 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
American Express Bank FSB | ||||
Series BKNT | 300 | 293 | ||
6.000% due 09/13/17 | 400 | 386 | ||
American Express Centurion Bank | ||||
Series BKN1 | 400 | 386 | ||
American Express Co. | ||||
7.000% due 03/19/18 | 200 | 202 | ||
American General Finance Corp. | ||||
4.875% due 05/15/10 | 225 | 221 | ||
6.900% due 12/15/17 | 400 | 349 | ||
American International Group, Inc. | ||||
4.700% due 10/01/10 | 20 | 20 | ||
5.375% due 10/18/11 | 195 | 191 | ||
5.050% due 10/01/15 (Ñ) | 265 | 240 | ||
5.850% due 01/16/18 | 900 | 843 | ||
Americo Life, Inc. (Å) | ||||
7.875% due 05/01/13 | 75 | 76 | ||
Amgen, Inc. | ||||
6.900% due 06/01/38 | 1,000 | 1,022 | ||
ANZ Capital Trust (ƒ)(Þ) | ||||
4.484% due 12/31/49 | 225 | 218 | ||
Appalachian Power Co. | ||||
Series O | 65 | 65 | ||
ArcelorMittal USA | ||||
6.500% due 04/15/14 | 210 | 213 | ||
Arizona Public Service Co. | ||||
5.800% due 06/30/14 | 100 | 95 | ||
6.250% due 08/01/16 | 150 | 143 | ||
AT&T, Inc. | ||||
4.950% due 01/15/13 | 200 | 199 | ||
5.500% due 02/01/18 | 200 | 194 | ||
6.300% due 01/15/38 | 975 | 921 | ||
6.400% due 05/15/38 | 150 | 144 | ||
Atmos Energy Corp. | ||||
6.350% due 06/15/17 | 65 | 64 | ||
Bank of America Corp. | ||||
2.904% due 11/06/09 (Ê) | 100 | 99 | ||
5.625% due 10/14/16 | 115 | 110 | ||
6.000% due 09/01/17 | 335 | 323 | ||
5.750% due 12/01/17 | 490 | 460 | ||
5.650% due 05/01/18 | 175 | 163 | ||
8.000% due 12/29/49 (ƒ) | 2,500 | 2,342 | ||
8.125% due 12/29/49 (ƒ) | 375 | 354 | ||
Bank of America NA | ||||
Series BKNT (Ê) | 200 | 181 |
Principal Amount ($) or Shares | Market Value $ | |||
Bear Stearns Cos., Inc. (The) | ||||
2.979% due 07/16/09 (Ê) | 1,200 | 1,186 | ||
3.218% due 07/19/10 (Ê) | 600 | 588 | ||
6.950% due 08/10/12 | 600 | 624 | ||
7.250% due 02/01/18 | 450 | 470 | ||
Bellsouth Telecommunications, Inc. | ||||
7.000% due 12/01/95 | 245 | 229 | ||
BNP Paribas Capital Trust (ƒ)(Å) | ||||
9.003% due 12/29/49 | 450 | 470 | ||
Boardwalk Pipelines, LP | ||||
5.875% due 11/15/16 | 225 | 216 | ||
Burlington Northern Santa Fe Corp. | ||||
6.875% due 12/01/27 | 25 | 26 | ||
6.750% due 03/15/29 | 10 | 10 | ||
Calpine Construction Finance Co. (Ê)(Þ) | ||||
11.499% due 08/26/11 | 300 | 320 | ||
Cargill, Inc.(Þ) | ||||
5.200% due 01/22/13 | 250 | 248 | ||
Caterpillar Financial Services Corp. | ||||
4.850% due 12/07/12 | 100 | 100 | ||
Catlin Insurance Co., Ltd. (ƒ)(Å) | ||||
7.249% due 12/31/49 | 100 | 73 | ||
CenterPoint Energy Houston Electric LLC | ||||
Series J2 | 110 | 111 | ||
CenterPoint Energy Resources Corp. | ||||
6.125% due 11/01/17 | 50 | 49 | ||
Series B | 165 | 177 | ||
Chubb Corp. | ||||
6.375% due 03/29/67 (Ñ) | 175 | 160 | ||
Series 1 | 50 | 48 | ||
Citigroup Capital XXI | ||||
8.300% due 12/21/77 | 100 | 94 | ||
Citigroup, Inc. | ||||
2.831% due 12/28/09 (Ê) | 400 | 390 | ||
6.500% due 01/18/11 | 100 | 103 | ||
5.500% due 08/27/12 | 200 | 197 | ||
5.500% due 04/11/13 | 700 | 683 | ||
5.850% due 07/02/13 (Ñ) | 425 | 421 | ||
4.700% due 05/29/15 | 50 | 45 | ||
5.850% due 08/02/16 | 55 | 53 | ||
6.000% due 08/15/17 | 400 | 382 | ||
6.125% due 11/21/17 | 405 | 389 | ||
6.125% due 05/15/18 | 645 | 617 | ||
6.125% due 08/25/36 | 300 | 254 |
Core Bond Fund | 47 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
6.875% due 03/05/38 (Ñ) | 325 | 314 | ||
8.400% due 04/29/49 (ƒ) | 550 | 523 | ||
Citizens Communications Co. | ||||
9.250% due 05/15/11 | 125 | 129 | ||
Clorox Co. | ||||
4.200% due 01/15/10 | 100 | 99 | ||
CNA Financial Corp. | ||||
6.500% due 08/15/16 | 125 | 120 | ||
Columbus Southern Power Co. | ||||
Series C | 10 | 10 | ||
Comcast Cable Communications Holdings, Inc. | ||||
9.455% due 11/15/22 | 125 | 151 | ||
Comcast Cable Holdings LLC | ||||
9.800% due 02/01/12 | 180 | 203 | ||
7.875% due 08/01/13 | 245 | 263 | ||
Comcast Corp. | ||||
5.500% due 03/15/11 | 100 | 100 | ||
Comcast Holdings Corp. | ||||
10.625% due 07/15/12 | 125 | 144 | ||
Commonwealth Edison Co. | ||||
6.950% due 07/15/18 | 50 | 50 | ||
5.900% due 03/15/36 | 75 | 68 | ||
6.450% due 01/15/38 | 40 | 39 | ||
Series 105 | 125 | 125 | ||
Series 98 | 80 | 82 | ||
Community Health Systems, Inc. | ||||
Series WI | 235 | 236 | ||
Continental Airlines, Inc. | ||||
Series 99-2 | 300 | 292 | ||
Countrywide Financial Corp. | ||||
Series MTN | 100 | 95 | ||
Countrywide Home Loans, Inc. | ||||
4.125% due 09/15/09 | 460 | 439 | ||
Series MTNK | 150 | 146 | ||
Series MTNL | 290 | 264 | ||
COX Communications, Inc. | ||||
4.625% due 01/15/10 (Ñ) | 350 | 348 | ||
5.875% due 12/01/16 (Þ) | 75 | 72 | ||
Credit Suisse USA, Inc. | ||||
4.875% due 08/15/10 (Ñ) | 65 | 66 |
Principal Amount ($) or Shares | Market Value $ | |||
5.500% due 08/15/13 | 45 | 45 | ||
4.875% due 01/15/15 | 55 | 52 | ||
CSC Holdings, Inc. | ||||
Series B | 210 | 212 | ||
8.125% due 08/15/09 | 175 | 176 | ||
Series WI (Ñ) | 90 | 85 | ||
Dayton Power & Light Co. (The) | ||||
5.125% due 10/01/13 | 135 | 136 | ||
DCP Midstream LLC | ||||
6.875% due 02/01/11 | 20 | 20 | ||
Dell, Inc. (Ñ)(Þ) | ||||
4.700% due 04/15/13 | 400 | 389 | ||
Delta Air Lines, Inc. | ||||
Series 00-1 | 205 | 194 | ||
Series 01-1 | 100 | 93 | ||
Detroit Edison Co. (The) | ||||
6.350% due 10/15/32 | 50 | 49 | ||
Dominion Resources, Inc. | ||||
Series A | 240 | 227 | ||
Series B | 66 | 68 | ||
DPL, Inc. | ||||
6.875% due 09/01/11 | 193 | 201 | ||
Echostar DBS Corp. | ||||
7.125% due 02/01/16 | 125 | 115 | ||
El Paso Corp. | ||||
8.050% due 10/15/30 | 200 | 205 | ||
El Paso Natural Gas Co. | ||||
7.500% due 11/15/26 | 100 | 102 | ||
Energy Transfer Partners, LP | ||||
5.950% due 02/01/15 | 325 | 320 | ||
6.700% due 07/01/18 (Ñ) | 200 | 201 | ||
Enterprise Products Operating LLC (Ñ) | ||||
6.500% due 01/31/19 | 100 | 101 | ||
Enterprise Products Operating, LP | ||||
4.950% due 06/01/10 | 125 | 125 | ||
8.375% due 08/01/66 | 100 | 100 | ||
Exelon Generation Co. LLC | ||||
6.200% due 10/01/17 | 40 | 39 | ||
Federal Express Corp. | ||||
7.600% due 07/01/97 | 75 | 85 | ||
Fifth Third Bancorp | ||||
8.250% due 03/01/38 | 1,100 | 891 |
48 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
FirstEnergy Corp. | ||||
Series B | 280 | 287 | ||
Series C (Ñ) | 125 | 136 | ||
Fiserv, Inc. | ||||
6.125% due 11/20/12 | 200 | 201 | ||
Florida Power & Light Co. | ||||
5.950% due 02/01/38 | 60 | 59 | ||
Ford Motor Credit Co. LLC | ||||
7.875% due 06/15/10 | 200 | 173 | ||
Freeport-McMoRan Copper & Gold, Inc. | ||||
8.375% due 04/01/17 | 485 | 512 | ||
General Electric Capital Corp. | ||||
2.888% due 01/20/10 (Ê) | 200 | 199 | ||
5.875% due 01/14/38 | 300 | 272 | ||
6.375% due 11/15/67 | 1,900 | 1,797 | ||
Series GMTN (Ñ) | 220 | 227 | ||
Series MTN (Ê) | 500 | 498 | ||
Series MTNA (Ñ) | 405 | 413 | ||
General Electric Co. | ||||
5.250% due 12/06/17 | 150 | 144 | ||
Goldman Sachs Group, Inc. (The) | ||||
6.250% due 09/01/17 | 600 | 593 | ||
6.750% due 10/01/37 | 800 | 732 | ||
GrafTech Finance, Inc. | ||||
10.250% due 02/15/12 | 47 | 49 | ||
Harrah’s Operating Co., Inc. (Ñ) | ||||
5.500% due 07/01/10 | 125 | 112 | ||
HCA, Inc. | ||||
9.125% due 11/15/14 | 125 | 128 | ||
9.250% due 11/15/16 | 235 | 242 | ||
HCP, Inc. | ||||
5.950% due 09/15/11 | 300 | 291 | ||
Historic TW, Inc. | ||||
8.050% due 01/15/16 | 195 | 205 | ||
6.625% due 05/15/29 | 10 | 9 | ||
HSBC Finance Corp. (Ê) | ||||
2.878% due 10/21/09 | 100 | 98 | ||
2.866% due 03/12/10 (Ñ) | 300 | 292 | ||
2.966% due 05/10/10 | 100 | 98 | ||
Idearc, Inc. (Ñ) | ||||
8.000% due 11/15/16 | 125 | 79 | ||
ING Capital Funding Trust III (ƒ) | ||||
8.439% due 12/29/49 | 275 | 278 |
Principal Amount ($) or Shares | Market Value $ | |||
Inmarsat Finance PLC | ||||
(Step Up, 10.375%, 11/15/08) | 125 | 126 | ||
International Lease Finance Corp. | ||||
4.950% due 02/01/11 | 100 | 95 | ||
International Paper Co. | ||||
5.850% due 10/30/12 | 510 | 491 | ||
iStar Financial, Inc. | ||||
Series B | 200 | 171 | ||
Jackson National Life Fund LLC | ||||
3.059% due 08/06/11 | 2,800 | 2,685 | ||
Jersey Central Power & Light Co. | ||||
5.625% due 05/01/16 | 90 | 87 | ||
JP Morgan Chase Capital XIII (Ê) | ||||
3.751% due 09/30/34 | 200 | 156 | ||
JPMorgan Chase & Co. | ||||
5.375% due 01/15/14 | 170 | 169 | ||
6.000% due 01/15/18 | 200 | 195 | ||
6.400% due 05/15/38 | 323 | 300 | ||
Series 1 (ƒ) | 840 | 788 | ||
JPMorgan Chase Bank | ||||
Series EMTN | 860 | 855 | ||
JPMorgan Chase Bank NA | ||||
Series BKNT | 70 | 68 | ||
6.000% due 10/01/17 | 400 | 389 | ||
Kerr-McGee Corp. | ||||
6.950% due 07/01/24 | 125 | 130 | ||
KeyBank NA (Ê) | ||||
Series BKNT | 300 | 300 | ||
Kinder Morgan Energy Partners, LP | ||||
5.950% due 02/15/18 | 700 | 682 | ||
Kraft Foods, Inc. | ||||
6.500% due 08/11/17 | 100 | 100 | ||
6.125% due 02/01/18 | 200 | 194 | ||
L-3 Communications Corp. | ||||
Series B | 125 | 117 | ||
Lehman Brothers Holdings, Inc. | ||||
2.778% due 05/25/10 (Ê) | 200 | 185 | ||
5.375% due 10/17/12 | 250 | 350 | ||
5.625% due 01/24/13 | 375 | 355 | ||
6.200% due 09/26/14 | 375 | 358 | ||
Mandalay Resort Group (Ñ) | ||||
6.500% due 07/31/09 | 90 | 89 |
Core Bond Fund | 49 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Manufacturers & Traders Trust Co. | ||||
5.585% due 12/28/20 | 84 | 76 | ||
Merrill Lynch & Co., Inc. | ||||
2.756% due 12/04/09 (Ê) | 200 | 192 | ||
6.050% due 08/15/12 | 100 | 98 | ||
5.450% due 02/05/13 | 200 | 189 | ||
6.400% due 08/28/17 | 325 | 301 | ||
6.875% due 04/25/18 | 500 | 476 | ||
MetLife, Inc. | ||||
6.125% due 12/01/11 | 205 | 213 | ||
6.400% due 12/15/36 (Ñ) | 100 | 87 | ||
Metropolitan Life Global Funding I (Ê)(Þ) | ||||
2.759% due 05/17/10 | 400 | 394 | ||
Midamerican Energy Holdings Co. | ||||
5.750% due 04/01/18 (Þ) | 125 | 124 | ||
6.125% due 04/01/36 | 150 | 144 | ||
Miller Brewing Co. (Þ) | ||||
5.500% due 08/15/13 | 110 | 112 | ||
Mirant Mid Atlantic LLC | ||||
Series A | 344 | 363 | ||
Mohegan Tribal Gaming Authority (Ñ) | ||||
8.000% due 04/01/12 | 125 | 114 | ||
Morgan Stanley | ||||
4.778% due 05/14/10 (Ê) | 400 | 398 | ||
5.190% due 03/01/13 (Ê) | 600 | 859 | ||
6.250% due 08/28/17 | 100 | 93 | ||
5.950% due 12/28/17 | 125 | 113 | ||
6.625% due 04/01/18 | 450 | 426 | ||
Series GMTN | 125 | 124 | ||
Series MTN (Ê) | 300 | 290 | ||
Natexis Ambs Co. LLC (ƒ)(Þ) | ||||
8.440% due 12/29/49 | 120 | 120 | ||
Nationwide Life Global Funding I (Ê)(Å) | ||||
2.919% due 05/19/10 | 1,900 | 1,898 | ||
Nelnet, Inc. | ||||
7.400% due 09/29/36 | 125 | 82 | ||
Nevada Power Co. | ||||
Series L | 100 | 100 | ||
New Cingular Wireless Services, Inc. | ||||
7.875% due 03/01/11 | 150 | 160 | ||
News America Holdings, Inc. | ||||
7.900% due 12/01/95 | 90 | 97 | ||
8.250% due 10/17/96 | 20 | 22 |
Principal Amount ($) or Shares | Market Value $ | |||
News America, Inc. | ||||
6.650% due 11/15/37 | 225 | 220 | ||
NGPL PipeCo LLC (Þ) | ||||
6.514% due 12/15/12 | 200 | 203 | ||
Nisource Finance Corp. | ||||
7.875% due 11/15/10 | 125 | 130 | ||
6.400% due 03/15/18 | 145 | 140 | ||
Norfolk Southern Corp. | ||||
7.700% due 05/15/17 | 20 | 22 | ||
7.050% due 05/01/37 | 90 | 97 | ||
7.900% due 05/15/97 | 415 | 455 | ||
Ohio Power Co. | ||||
Series F | 20 | 20 | ||
ONEOK Partners, LP | ||||
6.650% due 10/01/36 | 100 | 95 | ||
6.850% due 10/15/37 | 100 | 98 | ||
Pacific Gas & Electric Co. | ||||
4.200% due 03/01/11 | 60 | 59 | ||
6.050% due 03/01/34 | 95 | 92 | ||
PartnerRe Finance II | ||||
6.440% due 12/01/66 | 50 | 40 | ||
Philip Morris International, Inc. | ||||
5.650% due 05/16/18 | 350 | 340 | ||
6.375% due 05/16/38 | 100 | 97 | ||
Phoenix Life Insurance Co. (Þ) | ||||
7.150% due 12/15/34 | 150 | 149 | ||
PNC Bank NA (Ñ) | ||||
Series BKNT | 250 | 248 | ||
Pride International, Inc. (Ñ) | ||||
7.375% due 07/15/14 | 240 | 239 | ||
Progress Energy, Inc. | ||||
7.100% due 03/01/11 | 77 | 81 | ||
5.625% due 01/15/16 | 40 | 40 | ||
Public Service Company of New Mexico | ||||
7.950% due 05/15/18 | 260 | 263 | ||
Qwest Corp. | ||||
7.625% due 06/15/15 | 100 | 96 | ||
RBS Capital Trust III (ƒ)(Ñ) | ||||
5.512% due 09/29/49 | 200 | 174 | ||
Reckson Operating Partnership, LP | ||||
5.150% due 01/15/11 | 92 | 87 | ||
Reinsurance Group of America, Inc. | ||||
6.750% due 12/15/65 | 75 | 59 | ||
Residential Capital LLC (Å) | ||||
9.625% due 05/15/15 | 160 | 78 |
50 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Rohm & Haas Co. | ||||
6.000% due 09/15/17 | 100 | 97 | ||
Rural Cellular Corp. | ||||
9.875% due 02/01/10 | 170 | 173 | ||
8.250% due 03/15/12 | 105 | 108 | ||
Sabine Pass LNG, LP (Ñ) | ||||
7.250% due 11/30/13 | 275 | 250 | ||
Simon Property Group, LP | ||||
5.600% due 09/01/11 | 200 | 198 | ||
5.300% due 05/30/13 | 765 | 753 | ||
6.100% due 05/01/16 | 130 | 127 | ||
6.125% due 05/30/18 | 175 | 170 | ||
SLM Corp. | ||||
Series MTNs | 100 | 91 | ||
5.125% due 08/27/12 | 75 | 65 | ||
8.450% due 06/15/18 | 100 | 96 | ||
Southern California Edison Co. | ||||
Series 08-A | 95 | 94 | ||
Sprint Capital Corp. | ||||
7.625% due 01/30/11 | 275 | 270 | ||
State Street Capital Trust III (ƒ) | ||||
8.250% due 12/29/49 | 200 | 204 | ||
Sun Life Financial Global Funding, LP (Ê)(Þ) | ||||
2.978% due 07/06/10 | 1,500 | 1,493 | ||
Swiss Re Capital I, LP (ƒ)(Þ) | ||||
6.854% due 05/29/49 | 225 | 198 | ||
Symetra Financial Corp. (Å) | ||||
6.125% due 04/01/16 | 150 | 132 | ||
Target Corp. (Ñ) | ||||
5.125% due 01/15/13 | 400 | 405 | ||
Tennessee Gas Pipeline Co. (Ñ) | ||||
7.000% due 10/15/28 | 50 | 49 | ||
TEPPCO Partners, LP (Ñ) | ||||
6.650% due 04/15/18 | 250 | 253 | ||
Time Warner Cable, Inc. | ||||
Series WI | 370 | 366 | ||
5.850% due 05/01/17 | 155 | 147 | ||
6.550% due 05/01/37 (Ñ) | 75 | 69 | ||
Time Warner, Inc. (Ñ) | ||||
5.875% due 11/15/16 | 400 | 377 | ||
Travelers Cos., Inc. (The) | ||||
5.375% due 06/15/12 | 40 | 40 | ||
6.250% due 06/15/37 | 100 | 93 | ||
Union Electric Co. | ||||
6.400% due 06/15/17 | 205 | 205 |
Principal Amount ($) or Shares | Market Value $ | |||
Union Pacific Corp. | ||||
6.125% due 01/15/12 | 120 | 124 | ||
5.700% due 08/15/18 | 400 | 390 | ||
United States Steel Corp. | ||||
5.650% due 06/01/13 | 35 | 34 | ||
6.050% due 06/01/17 | 95 | 89 | ||
6.650% due 06/01/37 | 40 | 35 | ||
UnitedHealth Group, Inc. | ||||
5.250% due 03/15/11 | 95 | 95 | ||
4.875% due 02/15/13 | 200 | 194 | ||
6.000% due 06/15/17 | 35 | 34 | ||
Series WI | 45 | 41 | ||
Verizon Communications, Inc. | ||||
6.100% due 04/15/18 | 125 | 124 | ||
6.400% due 02/15/38 | 175 | 163 | ||
Wachovia Capital Trust III (ƒ) | ||||
5.800% due 03/15/42 | 125 | 85 | ||
Wachovia Corp. | ||||
5.625% due 10/15/16 | 100 | 91 | ||
5.750% due 06/15/17 (Ñ) | 155 | 143 | ||
5.750% due 02/01/18 | 500 | 456 | ||
7.980% due 12/31/49 (ƒ) | 3,585 | 3,292 | ||
Wells Fargo & Co. | ||||
4.375% due 01/31/13 | 450 | 436 | ||
5.625% due 12/11/17 | 800 | 774 | ||
Wells Fargo Capital XIII (ƒ) | ||||
Series GMTN | 300 | 298 | ||
Windstream Corp. | ||||
Series WI | 375 | 374 | ||
ZFS Finance USA Trust I (Þ) | ||||
6.150% due 12/15/35 | 500 | 456 | ||
71,470 | ||||
International Debt - 4.3% | ||||
America Movil SAB de CV | ||||
5.500% due 03/01/14 | 100 | 98 | ||
ArcelorMittal (Þ) | ||||
6.125% due 06/01/18 | 300 | 293 | ||
Argentina Bonos | ||||
3.092% due 08/03/12 (Ê) | 300 | 161 | ||
Series VII | 190 | 148 | ||
AstraZeneca PLC | ||||
5.900% due 09/15/17 | 100 | 103 | ||
AXA SA (ƒ)(Þ) | ||||
6.463% due 12/14/18 | 100 | 80 |
Core Bond Fund | 51 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Bank of Scotland PLC (Ê)(Þ) | ||||
Series MTN | 300 | 300 | ||
Barclays Bank PLC | ||||
5.450% due 09/12/12 | 1,300 | 1,315 | ||
6.050% due 12/04/17 (Þ) | 200 | 196 | ||
BNP Paribas (ƒ)(Þ) | ||||
5.186% due 06/29/49 | 300 | 261 | ||
Canadian Natural Resources, Ltd. | ||||
5.150% due 02/01/13 | 100 | 100 | ||
5.700% due 05/15/17 | 75 | 74 | ||
6.500% due 02/15/37 | 170 | 166 | ||
Citigroup Global Markets Deutschland AG for OAO Gazprom | ||||
10.500% due 10/21/09 | 200 | 215 | ||
Credit Suisse NY | ||||
5.000% due 05/15/13 | 330 | 321 | ||
Deutsche Bank AG | ||||
6.000% due 09/01/17 | 600 | 606 | ||
Deutsche Telekom International Finance BV | ||||
8.500% due 06/15/10 | 60 | 64 | ||
5.375% due 03/23/11 | 75 | 75 | ||
8.750% due 06/15/30 | 100 | 115 | ||
DNB NOR Bank ASA (Ê)(Þ) | ||||
2.780% due 10/13/09 | 1,000 | 1,000 | ||
Egypt Government AID Bonds | ||||
4.450% due 09/15/15 | 295 | 298 | ||
EnCana Corp. | ||||
6.500% due 02/01/38 | 225 | 223 | ||
Endurance Specialty Holdings, Ltd. | ||||
6.150% due 10/15/15 | 100 | 95 | ||
Enel Finance International SA (Þ) | ||||
6.250% due 09/15/17 | 600 | 607 | ||
HBOS PLC (Þ) | ||||
6.750% due 05/21/18 | 825 | 789 | ||
HSBC Holdings PLC | ||||
6.500% due 05/02/36 | 100 | 93 | ||
6.500% due 09/15/37 | 100 | 91 | ||
Inco, Ltd. | ||||
5.700% due 10/15/15 | 175 | 166 | ||
Ispat Inland ULC | ||||
9.750% due 04/01/14 | 689 | 736 | ||
Korea Development Bank (Ê) | ||||
2.824% due 04/03/10 | 900 | 898 | ||
Korea Electric Power Corp. (Þ) | ||||
5.125% due 04/23/34 | 60 | 58 | ||
MUFG Capital Finance 1, Ltd. (ƒ) | ||||
6.346% due 07/29/49 | 200 | 173 |
Principal Amount ($) or Shares | Market Value $ | |||
National Australia Bank, Ltd. (Þ) | ||||
5.350% due 06/12/13 | 800 | 799 | ||
Ras Laffan Liquefied Natural Gas Co., Ltd. III (Þ) | ||||
5.838% due 09/30/27 | 250 | 212 | ||
Resona Bank, Ltd. (ƒ)(Þ) | ||||
5.850% due 09/29/49 | 100 | 86 | ||
Resona Preferred Global Securities Cayman, Ltd. (ƒ)(Þ) | ||||
7.191% due 12/29/49 | 325 | 300 | ||
Rogers Wireless, Inc. (Ñ) | ||||
6.375% due 03/01/14 | 365 | 365 | ||
Royal Bank of Scotland Group PLC | ||||
6.990% due 10/29/49 (ƒ)(Þ) | 450 | 405 | ||
Series 1 (ƒ) | 700 | 705 | ||
Santander Perpetual SA Unipersonal (ƒ)(Þ) | ||||
6.671% due 10/29/49 | 300 | 290 | ||
SMFG Preferred Capital USD 1, Ltd. (ƒ)(Þ) | ||||
6.078% due 01/29/49 | 100 | 85 | ||
Sumitomo Mitsui Banking Corp. (ƒ)(Þ) | ||||
5.625% due 07/29/49 | 300 | 269 | ||
Systems 2001 AT LLC (Þ) | ||||
7.156% due 12/15/11 | 80 | 83 | ||
Telecom Italia Capital SA | ||||
4.875% due 10/01/10 (Ñ) | 150 | 149 | ||
6.200% due 07/18/11 | 255 | 260 | ||
7.721% due 06/04/38 | 200 | 203 | ||
Thomson Reuters Corp. | ||||
6.500% due 07/15/18 | 225 | 224 | ||
Transocean, Inc. | ||||
6.800% due 03/15/38 | 150 | 153 | ||
UBS AG | ||||
Series DPNT | 400 | 389 | ||
UBS AG | ||||
3.704% due 05/05/10 (Ê) | 700 | 697 | ||
Series MTN | 100 | 95 | ||
VTB Capital SA (Þ) | ||||
6.609% due 10/31/12 | 130 | 126 | ||
Westfield Capital Corp., Ltd. (Þ) | ||||
5.125% due 11/15/14 | 125 | 116 | ||
Westfield Group (Þ) | ||||
5.400% due 10/01/12 | 125 | 123 | ||
Xstrata Canada Corp. | ||||
7.250% due 07/15/12 | 50 | 52 | ||
6.000% due 10/15/15 | 45 | 43 | ||
16,147 | ||||
52 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Loan Agreements - 0.4% | ||||
Adam Aircraft Industries, Term Loan | ||||
14.890% due 05/01/12 | 56 | 6 | ||
Energy Future Holdings Corp., Term Loan B | ||||
5.948% due 10/10/14 | 27 | 25 | ||
6.234% due 10/10/14 | 165 | 152 | ||
6.478% due 10/10/14 | 32 | 30 | ||
NRG Energy, Inc. Term Loan B | ||||
6.480% due 02/01/13 | 1,579 | 1,421 | ||
1,634 | ||||
Mortgage-Backed Securities - 62.8% | ||||
ABN Amro Mortgage Corp. | ||||
Series 2003-13 Class A3 | 1,664 | 1,359 | ||
Adjustable Rate Mortgage Trust (Ê) | ||||
Series 2004-5 Class 2A1 | 83 | 79 | ||
Series 2005-3 Class 8A2 | 143 | 104 | ||
American Home Mortgage Assets (Ê) | ||||
Series 2007-4 Class A2 | 1,060 | 733 | ||
American Home Mortgage Investment Trust (Ê) | ||||
Series 2004-4 Class 4A | 114 | 102 | ||
Series 2005-2 Class 5A2 | 6 | 6 | ||
Banc of America Alternative Loan Trust | ||||
Series 2003-2 Class CB2 (Ê) | 79 | 75 | ||
Series 2003-10 Class 2A2 (Ê) | 192 | 173 | ||
Series 2006-5 Class CB17 | 209 | 182 | ||
Banc of America Commercial Mortgage, Inc. | ||||
Series 2004-3 Class A3 | 241 | 241 | ||
Series 2005-2 Class A4 | 333 | 327 | ||
Series 2005-3 Class A2 | 150 | 148 | ||
Series 2005-5 Class A4 | 500 | 477 |
Principal Amount ($) or Shares | Market Value $ | |||
Series 2006-1 Class A4 | 280 | 267 | ||
Series 2006-2 Class A4 | 200 | 195 | ||
Banc of America Funding Corp. | ||||
Series 2005-D Class A1 (Ê) | 134 | 125 | ||
Series 2006-3 Class 5A8 | 475 | 445 | ||
Series 2006-A Class 3A2 | 170 | 139 | ||
Series 2006-A Class 4A1 (Ê) | 446 | 415 | ||
Banc of America Mortgage Securities, Inc. | ||||
Series 2003-9 Class 1A12 (Ê) | 376 | 362 | ||
Series 2004-1 Class 5A1 | 13 | 13 | ||
Series 2004-2 Class 1A9 (Ê) | 188 | 179 | ||
Series 2004-11 Class 2A1 | 391 | 371 | ||
Series 2005-H Class 2A5 (Ê) | 220 | 209 | ||
Series 2005-L Class 3A1 (Ê) | 235 | 223 | ||
Series 2006-2 Class A15 | 241 | 235 | ||
Series 2006-B Class 1A1 (Ê) | 128 | 112 | ||
Series 2007-3 Class 1A1 | 866 | 828 | ||
Bear Stearns Adjustable Rate Mortgage Trust | ||||
Series 2003-1 Class 6A1 (Ê) | 61 | 58 | ||
Series 2003-8 Class 4A1 | 120 | 110 | ||
Series 2004-1 Class 21A1 (Ê) | 100 | 96 | ||
Series 2004-9 Class 22A1 (Ê) | 90 | 88 | ||
Series 2005-2 Class A1 (Ê) | 1,533 | 1,462 | ||
Series 2005-3 Class 2A1 (Ê) | 297 | 283 |
Core Bond Fund | 53 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Bear Stearns Alt-A Trust | ||||
Series 2005-4 Class 23A1 | 225 | 192 | ||
Series 2005-7 Class 22A1 | 107 | 88 | ||
Bear Stearns Alt-A Trust II | ||||
Series 2007-1 Class 1A1 | 902 | 706 | ||
Bear Stearns Commercial Mortgage Securities | ||||
Series 2006-PW1 Class A4 | 1,000 | 958 | ||
Bear Stearns Mortgage Funding Trust (Ê) | ||||
Series 2006-AR2 Class 1A1 | 882 | 632 | ||
Series 2006-AR2 Class 2A1 | 812 | 596 | ||
Chase Mortgage Finance Corp. | ||||
Series 2003-S8 Class A1 | 146 | 138 | ||
Series 2006-S4 Class A3 | 241 | 240 | ||
Series 2006-S4 Class A4 | 145 | 145 | ||
Series 2007-A1 Class 1A3 | 727 | 698 | ||
Citigroup Mortgage Loan Trust, Inc. | ||||
Series 2005-11 Class A2A (Ê) | 76 | 73 | ||
Series 2006-WFH Class A2 (Ê) | 1,000 | 932 | ||
Series 2007-AR8 Class 2A1A | 220 | 211 | ||
Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||
Series 2005-CD1 Class A4 | 1,340 | 1,292 | ||
Series 2006-CD3 Class A5 | 190 | 183 | ||
Citimortgage Alternative Loan Trust | ||||
Series 2006-A3 Class 1A5 | 144 | 130 | ||
Commercial Mortgage Pass Through Certificates | ||||
Series 2007-C9 Class A4 | 360 | 345 |
Principal Amount ($) or Shares | Market Value $ | |||
Countrywide Alternative Loan Trust | ||||
Series 2005-32T Class A7 (Ê) | 147 | 140 | ||
Series 2005-J8 Class 1A3 | 201 | 181 | ||
Series 2005-J13 Class 2A3 | 133 | 120 | ||
Series 2006-9T1 Class A7 | 105 | 89 | ||
Series 2006-43C Class 1A7 | 289 | 266 | ||
Series 2006-J2 Class A3 | 157 | 143 | ||
Series 2006-OA1 Class 2A1 (Ê) | 592 | 419 | ||
Series 2006-OA1 Class 4A1 (Ê) | 654 | 457 | ||
Series 2006-OA1 Class A1 (Ê) | 774 | 543 | ||
Series 2007-15C Class A5 | 906 | 678 | ||
Series 2007-J2 Class 2A1 | 258 | 221 | ||
Series 2007-OA1 Class A1A (Ê) | 977 | 777 | ||
Countrywide Home Loan Mortgage Pass Through Trust | ||||
Series 2003-8 Class A2 (Ê) | 161 | 161 | ||
Series 2003-52 Class A1 | 241 | 226 | ||
Series 2004-16 Class 1A1 (Ê) | 166 | 137 | ||
Series 2004-22 Class A3 | 227 | 218 | ||
Series 2004-HYB Class 1A1 | 384 | 374 | ||
Series 2004-HYB Class A2 | 94 | 83 | ||
Series 2005-3 Class 1A2 (Ê) | 28 | 21 | ||
Series 2005-HYB Class 2A1 | 392 | 319 | ||
Series 2005-HYB Class 3A2A (Ê) | 70 | 62 | ||
Series 2006-OA5 Class 2A1 (Ê) | 743 | 530 | ||
Series 2007-18 Class 2A1 | 257 | 244 |
54 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Series 2007-HY1 Class 1A2 | 91 | 80 | ||
Credit Suisse First Boston Mortgage Securities Corp. | ||||
Series 1998-C2 Class A2 | 41 | 41 | ||
Series 2005-9 Class 2A1 | 450 | 417 | ||
Deutsche ALT-A Securities, Inc. Alternate Loan Trust | ||||
Series 2005-AR1 Class 2A3 | 465 | 367 | ||
Series 2007-OA2 Class A1 (Ê) | 1,588 | 1,133 | ||
DLJ Commercial Mortgage Corp. | ||||
Series 1999-CG1 Class S | 2,939 | 19 | ||
Fannie Mae | ||||
5.190% due 2012 | 208 | 210 | ||
6.000% due 2016 | 13 | 14 | ||
4.833% due 2017 (Ê) | 46 | 46 | ||
5.000% due 2017 | 479 | 478 | ||
6.000% due 2017 | 79 | 80 | ||
4.000% due 2018 | 754 | 717 | ||
4.500% due 2018 | 2,664 | 2,605 | ||
5.000% due 2018 | 204 | 203 | ||
4.500% due 2019 | 161 | 159 | ||
5.000% due 2019 | 1,040 | 1,035 | ||
6.000% due 2019 | 434 | 446 | ||
4.500% due 2020 | 355 | 346 | ||
5.000% due 2020 | 800 | 795 | ||
5.500% due 2020 | 200 | 202 | ||
6.000% due 2020 | 547 | 563 | ||
5.000% due 2021 | 1,250 | 1,240 | ||
5.500% due 2021 | 402 | 405 | ||
5.500% due 2022 | 354 | 357 | ||
4.500% due 2023 | 1,048 | 1,025 | ||
5.000% due 2023 | 5,000 | 5,001 | ||
6.500% due 2024 | 495 | 512 | ||
6.000% due 2026 | 998 | 1,014 | ||
6.000% due 2027 | 497 | 505 | ||
7.000% due 2027 | 75 | 79 | ||
6.000% due 2028 | 32 | 33 | ||
5.500% due 2029 | 93 | 92 | ||
6.000% due 2032 | 497 | 506 | ||
7.000% due 2032 | 159 | 166 | ||
3.904% due 2033 (Ê) | 180 | 181 | ||
5.000% due 2033 | 556 | 536 |
Principal Amount ($) or Shares | Market Value $ | |||
5.023% due 2033 (Ê) | 88 | 89 | ||
5.500% due 2033 | 2,496 | 2,474 | ||
6.000% due 2033 | 186 | 188 | ||
5.000% due 2034 | 646 | 622 | ||
5.500% due 2034 | 3,901 | 3,863 | ||
5.000% due 2035 | 585 | 561 | ||
5.500% due 2035 | 18,772 | 18,572 | ||
6.000% due 2035 | 154 | 157 | ||
4.886% due 2036 (Ê) | 402 | 403 | ||
5.000% due 2036 | 1,116 | 1,073 | ||
5.500% due 2036 | 875 | 864 | ||
6.000% due 2036 | 4,620 | 4,665 | ||
6.500% due 2036 | 1,492 | 1,538 | ||
7.000% due 2036 | 23 | 24 | ||
5.000% due 2037 | 5,153 | 4,946 | ||
5.500% due 2037 | 3,571 | 3,526 | ||
5.556% due 2037 (Ê) | 279 | 283 | ||
6.000% due 2037 | 1,646 | 1,663 | ||
6.500% due 2037 | 1,892 | 1,940 | ||
7.000% due 2037 | 15,534 | 16,303 | ||
7.500% due 2037 | 1,819 | 1,922 | ||
5.000% due 2038 | 7,023 | 6,737 | ||
5.500% due 2038 | 10,800 | 10,658 | ||
6.500% due 2038 | 998 | 1,029 | ||
7.000% due 2038 | 941 | 987 | ||
7.500% due 2038 | 942 | 995 | ||
Series 2003-343 Class 6 | 251 | 59 | ||
Series 2003-345 Class 18 | 664 | 96 | ||
Series 2003-345 Class 19 | 742 | 106 | ||
Series 2005-365 Class 12 | 985 | 240 | ||
Series 2006-369 Class 8 | 202 | 46 | ||
15 Year TBA (Ï) | ||||
4.500% | 1,910 | 1,846 | ||
5.000% | 6,640 | 6,565 | ||
30 Year TBA (Ï) | ||||
5.000% | 5,915 | 5,041 | ||
5.500% | 5,210 | 5,135 | ||
6.000% | 16,905 | 17,053 | ||
6.500% | 1,815 | 1,868 |
Core Bond Fund | 55 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Fannie Mae REMICS | ||||
Series 1999-56 Class Z | 95 | 101 | ||
Series 2003-32 Class FH (Ê) | 292 | 292 | ||
Series 2003-35 Class FY (Ê) | 375 | 375 | ||
Series 2003-78 Class FI (Ê) | 297 | 293 | ||
Series 2004-21 Class FL (Ê) | 145 | 143 | ||
Series 2005-79 Class FC (Ê) | 131 | 129 | ||
Series 2006-48 Class LG | 67 | 42 | ||
Fannie Mae Whole Loan | ||||
Series 2003-W1 Class 1A1 | 38 | 38 | ||
Federal Home Loan Mortgage | ||||
Series 2005-63 Class 1A1 (Ê) | 30 | 28 | ||
First Horizon Alternative Mortgage Securities | ||||
Series 2004-AA3 Class A1 (Ê) | 48 | 44 | ||
Series 2006-AA5 Class A2 (Ê) | 142 | 96 | ||
Series 2006-FA3 Class A6 | 211 | 196 | ||
First Horizon Asset Securities, Inc. (Ê) | ||||
Series 2004-AR6 Class 2A1 | 42 | 40 | ||
Series 2005-AR5 Class 3A1 | 105 | 99 | ||
Freddie Mac | ||||
6.000% due 2016 | 23 | 23 | ||
5.000% due 2018 | 585 | 583 | ||
5.000% due 2019 | 670 | 668 | ||
5.000% due 2020 | 1,225 | 1,218 | ||
5.500% due 2020 | 700 | 708 | ||
6.781% due 2030 (Ê) | 1 | 1 | ||
5.000% due 2033 | 195 | 188 | ||
6.883% due 2034 (Ê) | 72 | 72 | ||
5.870% due 2036 (Ê) | 104 | 106 | ||
5.919% due 2036 (Ê) | 208 | 212 | ||
5.969% due 2036 (Ê) | 138 | 141 | ||
5.509% due 2037 (Ê) | 150 | 152 |
Principal Amount ($) or Shares | Market Value $ | |||
5.529% due 2037 (Ê) | 415 | 418 | ||
5.698% due 2037 (Ê) | 88 | 89 | ||
5.707% due 2037 (Ê) | 568 | 569 | ||
5.730% due 2037 (Ê) | 222 | 222 | ||
5.767% due 2037 (Ê) | 183 | 185 | ||
5.809% due 2037 (Ê) | 181 | 184 | ||
5.855% due 2037 (Ê) | 62 | 63 | ||
5.872% due 2037 (Ê) | 85 | 87 | ||
5.500% due 2038 | 3,679 | 3,628 | ||
30 Year TBA (Ï) | ||||
5.500% | 2,000 | 1,970 | ||
6.000% | 1,900 | 1,919 | ||
Freddie Mac REMICS | ||||
Series 2000-226 Class F (Ê) | 15 | 15 | ||
Series 2003-256 Class FJ (Ê) | 126 | 126 | ||
Series 2003-262 Class AB 2.900% due 11/15/14 | 187 | 185 | ||
Series 2004-281 Class DF (Ê) | 111 | 110 | ||
Series 2005-294 Class FA (Ê) | 208 | 206 | ||
Series 2005-299 Class KF (Ê) | 67 | 65 | ||
Series 2005-301 Class IM | 146 | 14 | ||
Series 2006-313 Class FP (Ê) | 135 | 140 | ||
Series 2006-317 Class XI (Ê) | 127 | 1 | ||
Series 2006-323 Class PA | 248 | 254 | ||
Series 2007-330 Class GL (Ê) | 68 | 90 | ||
Series 2007-333 Class AF (Ê) | 1,801 | 1,764 | ||
Series 2007-333 Class BF (Ê) | 324 | 318 | ||
Series 2007-333 Class FT (Ê) | 1,290 | 1,264 | ||
Series 2007-334 Class FA (Ê) | 1,264 | 1,238 | ||
Ginnie Mae I | ||||
6.000% due 2029 | 12 | 12 | ||
6.000% due 2036 | 425 | 433 | ||
30 Year TBA (Ï) | ||||
5.500% | 2,695 | 2,670 |
56 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Ginnie Mae II (Ê) | ||||
6.375% due 2026 | 182 | 186 | ||
5.625% due 2027 | 11 | 11 | ||
4.750% due 2032 | 73 | 73 | ||
GMAC Commercial Mortgage Securities, Inc. | ||||
Series 1999-C2 Class A2 | 186 | 189 | ||
GMAC Mortgage Corp. Loan Trust | ||||
Series 2004-JR1 Class A6 (Ê) | 90 | 86 | ||
Series 2007-HE3 Class 1A1 | 86 | 69 | ||
Government National Mortgage Association (Ê) | ||||
Series 1999-40 Class FE | 106 | 106 | ||
Series 2000-29 Class F | 20 | 20 | ||
Greenwich Capital Commercial Funding Corp. | ||||
Series 2003-C2 Class A2 | 200 | 199 | ||
Series 2004-GG1 Class A7 | 465 | 457 | ||
Series 2007-GG9 Class A4 | 215 | 200 | ||
GS Mortgage Securities Corp. II | ||||
Series 2006-GG6 Class A4 | 320 | 308 | ||
Series 2006-GG8 Class AAB | 200 | 194 | ||
GSR Mortgage Loan Trust | ||||
Series 2005-AR7 Class 6A1 | 252 | 236 | ||
Harborview Mortgage Loan Trust | ||||
Series 2005-4 Class 3A1 | 173 | 160 | ||
Series 2005-14 Class 3A1A | 96 | 94 | ||
Series 2005-16 Class 3A1A (Ê) | 415 | 310 | ||
Indymac Index Mortgage Loan Trust | ||||
Series 2005-AR1 Class A1 | 657 | 513 | ||
Series 2006-AR2 Class A2 (Ê) | 99 | 94 | ||
Series 2006-AR3 Class 2A1A (Ê) | 791 | 550 |
Principal Amount ($) or Shares | Market Value $ | |||
Series 2006-AR9 Class 1A1 | 797 | 647 | ||
JP Morgan Alternative Loan Trust (Ê) | ||||
Series 2007-A2 Class 12A2 | 539 | 484 | ||
JP Morgan Chase Commercial Mortgage Securities Corp. | ||||
Series 2001-CIB Class A2 | 92 | 94 | ||
Series 2004-LN2 Class A1 | 329 | 322 | ||
Series 2005-LDP Class A3A1 | 210 | 206 | ||
Series 2005-LDP Class A4 | 325 | 307 | ||
5.345% due 12/15/44 | 390 | 376 | ||
Series 2006-CB1 Class A4 | 220 | 210 | ||
Series 2006-LDP Class A3 | 305 | 286 | ||
Series 2006-LDP Class A3B | 250 | 238 | ||
Series 2006-LDP Class A4 | 650 | 638 | ||
5.399% due 05/15/45 | 290 | 275 | ||
Series 2007-CB1 Class A4 | 1,200 | 1,116 | ||
5.937% due 02/12/49 | 1,080 | 1,027 | ||
Series 2007-LDP Class A3 | 975 | 904 | ||
JP Morgan Mortgage Trust (Ê) | ||||
Series 2005-A1 Class 6T1 5.025% due 02/25/35 | 129 | 122 | ||
Series 2007-A1 Class 2A2 | 805 | 772 | ||
LB-UBS Commercial Mortgage Trust | ||||
Series 2006-C1 Class A4 | 1,000 | 941 | ||
Series 2006-C3 Class A4 | 210 | 204 | ||
Series 2006-C4 Class A4 | 105 | 103 | ||
Series 2007-C6 Class A4 | 270 | 258 | ||
Lehman Mortgage Trust | ||||
Series 2005-3 Class 1A3 | 602 | 573 | ||
Series 2006-8 Class 2A1 (Ê) | 843 | 639 |
Core Bond Fund | 57 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Lehman XS Trust (Ê) | ||||
Series 2005-5N Class 3A1A | 474 | 355 | ||
Series 2006-16N Class A4A | 789 | 560 | ||
Series 2007-7N Class 1A2 | 945 | 617 | ||
Mastr Adjustable Rate Mortgages Trust (Ê) | ||||
Series 2004-13 Class 3A4 | 148 | 146 | ||
Series 2006-OA2 Class 4A1A | 805 | 594 | ||
Mastr Alternative Loans Trust | ||||
Series 2003-4 Class B1 | 188 | 170 | ||
Series 2004-10 Class 5A6 | 170 | 136 | ||
Mastr Asset Securitization Trust (Ê) | ||||
Series 2003-7 Class 4A35 | 219 | 207 | ||
Series 2004-4 Class 2A2 | 82 | 80 | ||
Mellon Residential Funding Corp. (Ê) | ||||
Series 2000-TBC Class A1 | 173 | 163 | ||
Merrill Lynch Floating Trust (Ê)(Þ) | ||||
Series 2006-1 Class A1 | 841 | 791 | ||
Merrill Lynch Mortgage Investors, Inc. (Ê) | ||||
Series 2005-A10 Class A | 97 | 78 | ||
MLCC Mortgage Investors, Inc. (Ê) | ||||
Series 2004-HB1 Class A2 | 38 | 36 | ||
Series 2005-3 Class 5A | 57 | 49 | ||
Morgan Stanley Capital I | ||||
Series 2005-IQ1 Class AAB | 415 | 404 | ||
Series 2006-HQ1 Class A4 | 130 | 123 | ||
Series 2006-HQ8 Class A4 | 310 | 298 | ||
Series 2006-HQ9 Class A4 | 295 | 286 | ||
Series 2007-IQ1 Class A4 | 320 | 304 |
Principal Amount ($) or Shares | Market Value $ | |||
MortgageIT Trust (Ê) | ||||
Series 2005-AR1 Class 1A1 | 486 | 362 | ||
Prime Mortgage Trust (Ê) | ||||
Series 2004-CL1 Class 1A2 | 37 | 34 | ||
Residential Accredit Loans, Inc. | ||||
Series 2004-QS5 Class A6 (Ê) | 56 | 50 | ||
Series 2004-QS8 Class A4 (Ê) | 275 | 256 | ||
Series 2005-QA8 Class NB3 | 247 | 220 | ||
Series 2005-QO5 Class A1 (Ê) | 568 | 438 | ||
Series 2005-QS1 Class 2A3 | 710 | 643 | ||
Series 2006-QS6 Class 1A13 | 345 | 308 | ||
Series 2007-QH9 Class A1 | 975 | 770 | ||
Residential Asset Securities Corp. (Ê) | ||||
Series 2003-KS4 Class AIIB | 47 | 33 | ||
Residential Asset Securitization Trust | ||||
Series 2003-A15 Class 1A2 (Ê) | 314 | 279 | ||
Series 2007-A5 Class 2A3 | 126 | 112 | ||
Residential Funding Mortgage Securities I | ||||
Series 2003-S5 Class 1A2 (Ê) | 170 | 170 | ||
Series 2003-S14 Class A5 (Ê) | 181 | 180 | ||
Series 2003-S20 Class 1A7 (Ê) | 63 | 60 | ||
Series 2005-SA4 Class 2A1 | 688 | 653 | ||
Series 2006-SA4 Class 2A1 | 454 | 435 | ||
Sequoia Mortgage Trust (Ê) | ||||
Series 2001-5 Class A | 62 | 59 | ||
Small Business Administration | ||||
Series 2000-P10 Class 1 | 5 | 5 |
58 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Small Business Administration Participation Certificates | ||||
Series 2005-20G Class 1 | 842 | 812 | ||
Structured Adjustable Rate Mortgage Loan Trust | ||||
Series 2004-5 Class 3A1 | 140 | 128 | ||
Series 2004-12 Class 3A2 | 65 | 55 | ||
Series 2004-16 Class 3A1 | 242 | 223 | ||
Series 2005-21 Class 7A1 | 1,229 | 1,026 | ||
Series 2006-12 Class 2A1 | 837 | 647 | ||
Structured Asset Mortgage Investments, Inc. (Ê) | ||||
Series 2005-AR5 Class A3 | 166 | 137 | ||
Series 2006-AR2 Class A1 | 582 | 417 | ||
Series 2006-AR8 Class A1A | 808 | 575 | ||
Series 2007-AR6 Class A1 | 981 | 729 | ||
Structured Asset Securities Corp. | ||||
Series 2004-21X Class 1A3 | 373 | 374 | ||
Thornburg Mortgage Securities Trust (Ê) | ||||
Series 2003-2 Class A1 | 81 | 79 | ||
Series 2006-5 Class A1 | 716 | 690 | ||
Series 2006-6 Class A1 | 132 | 127 | ||
Wachovia Bank Commercial Mortgage Trust | ||||
Series 2005-C21 Class A4 | 1,000 | 968 | ||
Washington Mutual Alternative Mortgage Pass-Through Certificates | ||||
Series 2005-4 Class CB11 | 90 | 76 | ||
Series 2007-OA1 Class 2A (Ê) | 744 | 528 |
Principal Amount ($) or Shares | Market Value $ | |||
Washington Mutual Mortgage Pass Through Certificates | ||||
Series 2003-S9 Class A2 (Ê) | 325 | 310 | ||
Series 2004-AR3 Class A2 | 159 | 156 | ||
Series 2005-AR1 Class 1A1 | 274 | 270 | ||
Series 2005-AR1 Class A1A1 (Ê) | 36 | 28 | ||
2.743% due 11/25/45 | 887 | 679 | ||
2.753% due 12/25/45 | 441 | 340 | ||
Series 2005-AR6 Class B3 (Ê) | 197 | 69 | ||
Series 2006-AR1 Class 3A1A (Ê) | 740 | 523 | ||
Series 2006-AR2 Class 1A1 | 766 | 738 | ||
Series 2007-HY3 Class 4A1 | 850 | 793 | ||
Series 2007-HY3 Class 4B1 | 125 | 91 | ||
Series 2007-HY4 Class 1A1 (Ê) | 152 | 144 | ||
Wells Fargo Alternative Loan Trust | ||||
Series 2007-PA6 Class A1 | 876 | 699 | ||
Wells Fargo Mortgage Backed Securities Trust | ||||
Series 2005-AR6 Class A1 (Ê) | 716 | 676 | ||
Series 2006-2 Class 2A3 | 415 | 406 | ||
Series 2006-AR2 Class 2A1 | 301 | 290 | ||
Series 2007-8 Class 1A16 | 347 | 326 | ||
Series 2007-10 Class 2A5 | 167 | 160 | ||
233,711 | ||||
Municipal Bonds - 0.5% | ||||
Los Angeles Unified School District General Obligation Unlimited (m) | ||||
4.500% due 07/01/22 | 400 | 396 | ||
Michigan State University Revenue Bonds (Ê)(m) | ||||
2.423% due 02/15/37 | 340 | 273 |
Core Bond Fund | 59 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
New York City Municipal Water Finance Authority Revenue Bonds | ||||
4.750% due 06/15/37 | 1,300 | 1,266 | ||
1,935 | ||||
Non-US Bonds - 0.6% | ||||
Argentina Bocon | ||||
Series PR12 | ARS 28 | 15 | ||
Bombardier, Inc. (Å) | ||||
7.250% due 11/15/16 | EUR 125 | 188 | ||
Brazilian Government International Bond | ||||
12.500% due 01/05/22 | BRL 300 | 188 | ||
Federative Republic of Brazil | ||||
10.250% due 01/10/28 | BRL 1,400 | 738 | ||
Hellas Telecommunications Luxembourg V (Ê) | ||||
Series REGS | EUR 125 | 180 | ||
Hungary Government Bond | ||||
Series 12/C | HUF 59,750 | 354 | ||
Impress Holdings B.V. | ||||
7.872% due 09/15/13 | EUR 125 | 181 | ||
Ineos Group Holdings PLC | ||||
Series REGS | EUR 125 | 128 | ||
UBS AG | EUR 270 | 157 | ||
2,129 | ||||
United States Government Treasuries - 4.6% | ||||
United States Treasury Inflation Indexed Bonds | ||||
2.000% due 01/15/26 (Ñ) | 1,299 | 1,287 | ||
2.375% due 01/15/27 | 213 | 223 | ||
United States Treasury Notes (Ñ) | ||||
3.625% due 12/31/12 | 3,461 | 3,514 | ||
2.500% due 03/31/13 | 6,544 | 6,313 | ||
5.125% due 05/15/16 | 283 | 309 | ||
8.750% due 08/15/20 | 1,398 | 1,970 | ||
6.000% due 02/15/26 | 1,440 | 1,686 | ||
6.125% due 11/15/27 | 1,101 | 1,317 | ||
4.750% due 02/15/37 | 415 | 429 | ||
17,048 | ||||
Total Long-Term Investments | ||||
(cost $370,176) | 358,725 | |||
Principal Amount ($) or Shares | Market Value $ | |||
Common Stocks - 0.0% | ||||
Auto and Transportation - 0.0% | ||||
Northwest Airlines Corp. (Æ) | 18 | — | ||
Total Common Stocks | ||||
(cost $103) | — | |||
Preferred Stocks - 0.4% | ||||
Financial Services - 0.4% | ||||
Bank of America Corp. (Ñ) | 1,000 | 885 | ||
DG Funding Trust (Æ)(Å) | 49 | 487 | ||
Total Preferred Stocks | ||||
(cost $1,517) | 1,372 | |||
Notional | ||||
Options Purchased - 0.1% | ||||
(Number of Contracts) | ||||
Swaptions | ||||
(Fund Pays/Fund Receives) | ||||
USD Three Month LIBOR/USD | ||||
3.150% | ||||
Dec 2008 0.00 Call (2) | USD 18,500 | 51 | ||
USD Three Month LIBOR/USD | ||||
3.000% | ||||
Feb 2009 0.00 Call (1) | USD 24,400 | 58 | ||
USD Three Month LIBOR/USD | ||||
3.150% | ||||
Feb 2009 0.00 Call (1) | USD 8,700 | 26 | ||
USD Three Month LIBOR/USD | ||||
3.500% | ||||
Feb 2009 0.00 Call (1) | USD 13,200 | 63 | ||
USD Three Month LIBOR/USD | ||||
3.600% | ||||
Jul 2009 0.00 Call (1) | USD 2,300 | 12 | ||
USD Three Month LIBOR/USD | ||||
3.450% | ||||
Aug 2009 0.00 Call (5) | USD 17,900 | 83 | ||
Total Options Purchased | ||||
(cost $850) | 293 | |||
60 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | |||
Short-Term Investments - 16.5% | ||||
American Express Bank FSB (Ê) | ||||
Series BKNT | 300 | 300 | ||
AES Corp. (The)(Ñ) | ||||
9.500% due 06/01/09 | 125 | 128 | ||
AMFM, Inc. | ||||
8.000% due 11/01/08 | 50 | 51 | ||
Bank of America NA | ||||
Series BKNT (Ê) | 700 | 698 | ||
BNP Paribas (ç)(ž) | ||||
Zero coupon due 07/02/08 | 1,015 | 1,015 | ||
Calyon NY (ž) | ||||
2.689% due 01/16/09 | 300 | 300 | ||
Caterpillar Financial Services Corp. | ||||
2.779% due 05/18/09 (Ê) | 1,100 | 1,097 | ||
Citibank Omni-S Master Trust (ž) | ||||
3.570% due 10/23/08 | 700 | 692 | ||
3.580% due 10/23/08 | 2000 | 1,977 | ||
Citigroup Funding, Inc. (Ê) | ||||
2.667% due 12/08/08 | 100 | 99 | ||
2.481% due 04/23/09 | 100 | 99 | ||
2.809% due 06/26/09 | 200 | 197 | ||
Citigroup Global Markets Holdings, Inc. (Ê) | ||||
Series MTNA | 200 | 198 | ||
Citigroup, Inc.(Ê) | ||||
2.939% due 01/30/09 | 100 | 99 | ||
Countrywide Financial Corp. (Ê) | ||||
2.796% due 09/02/08 (Ê)(Ñ) | 570 | 566 | ||
2.868% due 01/05/09 | 150 | 147 | ||
Daimler Finance North America LLC (Ê) | ||||
3.138% due 03/13/09 | 400 | 399 | ||
3.218% due 03/13/09 (Ñ) | 300 | 299 | ||
Deutsche Telekom International Finance BV (Ê) | ||||
2.981% due 03/23/09 | 300 | 298 | ||
Dexia Credit SA (ž) | ||||
2.329% due 09/29/08 | 1,100 | 1,099 | ||
Federal Home Loan Bank Discount Notes (ž)(Ñ) | ||||
Zero coupon due 07/07/08 (ç) | 1,340 | 1,340 | ||
Zero coupon due 07/09/08 (ç) | 160 | 160 | ||
Zero coupon due 09/17/08 | 3,255 | 3,237 |
Principal Amount ($) or Shares | Market Value $ | |||
Federal National Mortgage Association Discount Notes (ç)(ž) | ||||
Zero coupon due 07/21/08 (§) | 1,826 | 1,824 | ||
Zero coupon due 07/30/08 | 640 | 639 | ||
Zero coupon due 08/04/08 | 1,305 | 1,302 | ||
Zero coupon due 09/17/08 (Ñ) | 9,475 | 9,422 | ||
Ferro Corp. | ||||
9.125% due 01/01/09 | 125 | 129 | ||
Fortis Bank | ||||
2.623% due 09/30/08 | 300 | 300 | ||
France Bons Du Tresor | ||||
Zero coupon due 08/21/08 | 1,000 | 1,565 | ||
Freddie Mac Discount Notes (ž) | ||||
2.170% due 07/21/08 (ç)(§) | 27 | 27 | ||
Zero coupon due 07/21/08 | 1,271 | 1,269 | ||
Zero coupon due 07/23/08 (ç) | 1,430 | 1,428 | ||
Zero coupon due 09/15/08 | 4,580 | 4,554 | ||
Gazinvest Luxembourg SA for Gazprombank | ||||
7.250% due 10/30/08 | 160 | 161 | ||
General Electric Capital Corp. (Ê) | ||||
Series MTNA | 700 | 700 | ||
General Electric Co.(Ê)(Ñ) | ||||
2.717% due 12/09/08 | 200 | 200 | ||
Goldman Sachs Group, Inc. (The) (Ê) | ||||
Series MTNB | 300 | 293 | ||
2.841% due 12/23/08 (Ê) | 600 | 598 | ||
2.851% due 03/30/09 (Ê) | 400 | 398 | ||
Jefferson-Pilot Capital Trust B (Ê)(Þ) | ||||
2.582% due 11/14/08 | 1,200 | 1,196 | ||
Lehman Brothers Holdings, Inc. (Ê) | ||||
2.774% due 04/03/09 (Ñ) | 400 | 388 | ||
3.010% due 01/23/09 | 600 | 587 | ||
Merrill Lynch & Co., Inc. | ||||
Series MTN (Ê) | 900 | 881 | ||
Morgan Stanley (Ê) | ||||
Series GMTN | 500 | 495 | ||
2.820% due 05/07/09 (Ê) | 300 | 295 | ||
Nordea Bank Finland PLC (ž) | ||||
3.028% due 04/09/09 | 400 | 400 | ||
Parker Hannifin Employee Stock Ownership Trust (Þ) | ||||
6.340% due 07/15/08 | 28 | 28 |
Core Bond Fund | 61 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands (except share amounts)
Principal Amount ($) or Shares | Market Value $ | ||||
Rabobank USA Financial Corp. (ž)(ç) | |||||
Zero coupon due 07/14/08 | 1,025 | 1,024 | |||
Reckson Operating Partnership, LP | |||||
7.750% due 03/15/09 | 25 | 25 | |||
Russell Investment Company Money Market Fund | 10,763,000 | 10,763 | |||
Santander US Debt SA Unipersonal (Ê)(Þ) | |||||
2.683% due 11/20/08 | 500 | 499 | |||
Skandinaviska Enskilda Banken (ž)(ç) | |||||
2.618% due 08/21/08 | 400 | 400 | |||
Telefonica Emisiones SAU (Ê) | |||||
3.103% due 06/19/09 | 300 | 298 | |||
Transocean, Inc. (Ê) | |||||
2.873% due 09/05/08 | 200 | 200 | |||
Unicredit Luxembourg Finance SA (Ê)(Þ) | |||||
2.970% due 10/24/08 | 1,000 | 999 | |||
United States Treasury Bills (ç)(ž) | |||||
1.873% due 08/28/08 (§) | 100 | 100 | |||
1.875% due 09/11/08 | 500 | 498 | |||
Verizon Communications, Inc. (Ê) | |||||
2.734% due 04/03/09 | 500 | 499 | |||
VTB Capital SA (Ê)(Þ) | |||||
3.384% due 08/01/08 | 230 | 228 | |||
Wachovia Mortgage FSB (Ê) | |||||
Series BKNT | 1,000 | 994 | |||
Westpactrust Securities NZ Ltd. (ž) | |||||
2.770% due 09/18/08 | 1,200 | 1,192 | |||
Total Short-Term Investments | |||||
(cost $61,346) | 61,293 | ||||
Other Securities - 11.0% | |||||
State Street Securities Lending Quality Trust (×) | 41,109,194 | 41,109 | |||
Total Other Securities | |||||
(cost $41,109) | 41,109 | ||||
Total Investments - 124.3% | |||||
(identified cost $475,000) | 462,792 | ||||
Other Assets and Liabilities, Net - (24.3%) | (90,408 | ) | |||
Net Assets - 100.0% | 372,384 | ||||
See accompanying notes which are an integral part of the financial statements.
62 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Futures Contracts (Number of Contracts) | Notional Amount | Unrealized Appreciation (Depreciation) $ | |||||
Long Positions | |||||||
Euribor Futures | EUR | 1,184 | — | ||||
expiration date 03/09 (5) | EUR | 1,184 | — | ||||
expiration date 06/09 (5) | EUR | 1,184 | (1 | ) | |||
Eurodollar Futures (CME) expiration date 09/08 (39) | USD | 9,464 | 4 | ||||
expiration date 12/08 (178) | USD | 43,085 | 510 | ||||
expiration date 03/09 (62) | USD | 14,985 | 11 | ||||
expiration date 06/09 (64) | USD | 15,435 | (46 | ) | |||
expiration date 09/09 (43) | USD | 10,343 | (49 | ) | |||
expiration date 12/09 (30) | USD | 7,195 | (44 | ) | |||
expiration date 03/10 (17) | USD | 4,069 | (18 | ) | |||
Federal Funds Target Rate Futures | USD | 1,224 | 1 | ||||
expiration date 09/08 (3) | USD | 1,223 | 2 | ||||
Germany, Federal Republic 5 Year Bonds (Germany) | EUR | 3,385 | (56 | ) | |||
Germany, Federal Republic 10 Year Bonds (Germany) | EUR | 1,880 | (46 | ) | |||
Germany, Federal Republic 30 Year Bonds (Germany) | EUR | 867 | (6 | ) | |||
LIBOR Futures | |||||||
expiration date 12/08 (12) | GBP | 1,407 | (42 | ) | |||
expiration date 06/09 (5) | GBP | 587 | (5 | ) | |||
expiration date 12/09 (1) | GBP | 117 | (3 | ) | |||
Three Month Short Sterling Interest Rate Futures (UK) | GBP | 2,582 | (42 | ) | |||
expiration date 03/09 (8) | GBP | 938 | (4 | ) | |||
UK Treasury Bond Futures (UK) | GBP | 626 | (10 | ) | |||
United States Treasury 2 Year Notes | USD | 7,392 | 37 | ||||
United States Treasury 5 Year Notes | USD | 12,824 | 33 | ||||
United States Treasury 10 Year Notes | USD | 3,760 | 8 | ||||
United States Treasury Bonds | USD | 12,831 | 193 |
Futures Contracts (Number of Contracts) | Notional Amount | Unrealized Appreciation (Depreciation) $ | |||||
Short Positions | |||||||
Eurodollar Futures (CME) expiration date 12/09 (3) | USD | 720 | 4 | ||||
Germany, Federal Republic 2 Year Bonds (Germany) | EUR | 716 | 8 | ||||
United States Treasury 5 Year Notes | USD | 15,257 | (133 | ) | |||
Total Unrealized Appreciation | 306 | ||||||
See accompanying notes which are an integral part of the financial statements.
Core Bond Fund | 63 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Options Written (Number of Contracts) | Notional Amount | Market Value $ | |||
Swaptions | |||||
(Fund Receives/Fund Pays) | |||||
USD Three Month LIBOR/USD | |||||
4.300% | |||||
Dec 2008 0.00 Call (2) | 6,100 | (81 | ) | ||
USD Three Month LIBOR/USD | |||||
3.950% | |||||
Feb 2009 0.00 Call (1) | 10,600 | (101 | ) | ||
USD Three Month LIBOR/USD | |||||
4.250% | |||||
Feb 2009 0.00 Call (1) | 2,900 | (40 | ) | ||
USD Three Month LIBOR/USD | |||||
4.300% | |||||
Feb 2009 0.00 Call (1) | 3,800 | (57 | ) | ||
USD Three Month LIBOR/USD | |||||
4.600% | |||||
Feb 2009 0.00 Call (1) | 1,300 | (28 | ) | ||
USD Three Month LIBOR/USD | |||||
4.200% | |||||
Jul 2009 0.00 Call (1) | 1,000 | (14 | ) | ||
USD Three Month LIBOR/USD | |||||
4.150% | |||||
Aug 2009 0.00 Call (1) | 600 | (8 | ) | ||
USD Three Month LIBOR/USD | |||||
4.400% | |||||
Aug 2009 0.00 Call (5) | 5,500 | (108 | ) | ||
United States Treasury Notes | |||||
Aug 2008 117.00 Call (26) | USD 26 | (10 | ) | ||
Aug 2008 111.00 Put (26) | USD 26 | (10 | ) | ||
Total Liability for Options Written (premiums received $926) | (457 | ) | |||
See accompanying notes which are an integral part of the financial statements.
64 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Foreign Currency Exchange Contracts | |||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | ||||||||
USD | 56 | AUD | 59 | 07/24/08 | — | ||||||
USD | 680 | AUD | 724 | 09/17/08 | 7 | ||||||
USD | 926 | BRL | 1,489 | 07/02/08 | 2 | ||||||
USD | 1,727 | BRL | 2,872 | 07/02/08 | 64 | ||||||
USD | 50 | BRL | 82 | 10/15/08 | — | ||||||
USD | 690 | CAD | 706 | 09/17/08 | 2 | ||||||
USD | 1,354 | CAD | 1,377 | 09/17/08 | (4 | ) | |||||
USD | 698 | CHF | 732 | 09/17/08 | 19 | ||||||
USD | 356 | CNY | 2,451 | 08/20/08 | 4 | ||||||
USD | 9 | EUR | 6 | 07/01/08 | — | ||||||
USD | 62 | EUR | 39 | 07/01/08 | — | ||||||
USD | 866 | EUR | 562 | 07/09/08 | 19 | ||||||
USD | 2,092 | EUR | 1,331 | 09/17/08 | (5 | ) | |||||
USD | 8 | GBP | 4 | 07/01/08 | — | ||||||
USD | 100 | GBP | 50 | 07/02/08 | — | ||||||
USD | 687 | GBP | 349 | 09/17/08 | 5 | ||||||
USD | 489 | INR | 19,564 | 08/12/08 | (38 | ) | |||||
USD | 630 | JPY | 66,351 | 09/17/08 | (2 | ) | |||||
USD | 690 | JPY | 73,762 | 09/17/08 | 8 | ||||||
USD | 1,522 | KRW | 1,483,537 | 08/04/08 | (106 | ) | |||||
USD | 85 | MYR | 273 | 08/04/08 | (2 | ) | |||||
USD | 181 | MYR | 585 | 08/04/08 | (2 | ) | |||||
USD | 698 | NOK | 3,636 | 09/17/08 | 10 | ||||||
USD | 36 | PHP | 1,609 | 08/22/08 | — | ||||||
USD | 36 | PHP | 1,615 | 08/22/08 | — | ||||||
USD | 37 | PHP | 1,656 | 08/22/08 | — | ||||||
USD | 37 | PHP | 1,659 | 08/22/08 | — | ||||||
USD | 37 | PHP | 1,669 | 08/22/08 | — | ||||||
USD | 108 | PHP | 4,706 | 08/22/08 | (3 | ) | |||||
USD | 176 | PHP | 7,651 | 08/22/08 | (6 | ) | |||||
USD | 51 | RUB | 1,210 | 07/17/08 | 1 | ||||||
USD | 1,121 | SGD | 1,538 | 07/30/08 | 11 | ||||||
AUD | 745 | USD | 690 | 09/17/08 | (17 | ) | |||||
BRL | 4,361 | USD | 2,490 | 07/02/08 | (229 | ) | |||||
BRL | 1,425 | USD | 824 | 08/04/08 | (57 | ) | |||||
BRL | 1,489 | USD | 903 | 10/15/08 | (1 | ) | |||||
CAD | 713 | USD | 698 | 09/17/08 | (1 | ) | |||||
CHF | 718 | USD | 690 | 09/17/08 | (13 | ) | |||||
EUR | 532 | USD | 822 | 07/09/08 | (15 | ) | |||||
EUR | 690 | USD | 1,069 | 07/09/08 | (16 | ) | |||||
EUR | 576 | USD | 906 | 07/24/08 | — | ||||||
EUR | 982 | USD | 1,528 | 07/24/08 | (16 | ) | |||||
EUR | 442 | USD | 687 | 09/17/08 | (6 | ) | |||||
EUR | 449 | USD | 690 | 09/17/08 | (14 | ) | |||||
EUR | 454 | USD | 698 | 09/17/08 | (14 | ) | |||||
EUR | 481 | USD | 747 | 09/17/08 | (8 | ) |
Foreign Currency Exchange Contracts | |||||||||||
Amount Sold | Amount Bought | Settlement Date | Unrealized Appreciation (Depreciation) $ | ||||||||
GBP | 36 | USD | 71 | 08/11/08 | (1 | ) | |||||
GBP | 42 | USD | 83 | 08/11/08 | — | ||||||
GBP | 109 | USD | 213 | 08/21/08 | (4 | ) | |||||
GBP | 356 | USD | 690 | 09/17/08 | (15 | ) | |||||
GBP | 361 | USD | 698 | 09/17/08 | (16 | ) | |||||
HUF | 55,118 | USD | 332 | 08/15/08 | (34 | ) | |||||
INR | 19,432 | USD | 475 | 08/12/08 | 27 | ||||||
JPY | 24,371 | USD | 226 | 07/30/08 | (4 | ) | |||||
JPY | 73,683 | USD | 698 | 09/17/08 | 1 | ||||||
KRW | 1,483,537 | USD | 1,421 | 08/04/08 | 5 | ||||||
NZD | 905 | USD | 684 | 09/17/08 | 3 | ||||||
NZD | 930 | USD | 698 | 09/17/08 | (2 | ) | |||||
RUB | 1,210 | USD | 51 | 07/10/08 | (1 | ) | |||||
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts | (464 | ) | |||||||||
See accompanying notes which are an integral part of the financial statements.
Core Bond Fund | 65 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Interest Rate Swaps Contracts | |||||||||||||
Counter | Notional Amount | Fund Receives | Fund Pays | Termination Date | Market Value $ | ||||||||
Bank of America | USD | 6,500 | 5.473% | Three Month LIBOR | 06/14/11 | 298 | |||||||
Bank of America | USD | 1,800 | 5.548% | Three Month LIBOR | 06/14/16 | 123 | |||||||
Bank of America | USD | 1,100 | 5.000% | Three Month LIBOR | 12/17/28 | (1 | ) | ||||||
Bank of America | USD | 800 | Three Month LIBOR | 5.000% | 12/17/28 | 9 | |||||||
Bank of America | USD | 1,500 | 5.628% | Three Month LIBOR | 06/16/36 | 152 | |||||||
Bank of America | USD | 600 | Three Month LIBOR | 5.000% | 12/17/38 | 3 | |||||||
Barclays Bank PLC | BRL | 100 | 11.360% | Brazil Interbank Deposit Rate | 01/04/10 | (3 | ) | ||||||
Barclays Bank PLC | EUR | 1,800 | Six Month LIBOR | 5.000% | 06/11/10 | 16 | |||||||
Barclays Bank PLC | EUR | 430 | 4.750% | Six Month LIBOR | 07/04/17 | (14 | ) | ||||||
Barclays Bank PLC | EUR | 330 | 4.750% | Six Month LIBOR | 12/17/18 | (12 | ) | ||||||
Barclays Bank PLC | EUR | 370 | Six Month LIBOR | 4.750% | 12/17/18 | 13 | |||||||
Barclays Bank PLC | EUR | 380 | 5.000% | Six Month LIBOR | 12/17/38 | 4 | |||||||
Barclays Bank PLC | EUR | 410 | Six Month LIBOR | 5.000% | 12/17/38 | — | |||||||
Barclays Bank PLC | GBP | 100 | 6.000% | Six Month LIBOR | 12/20/08 | — | |||||||
Barclays Bank PLC | GBP | 160 | 5.250% | Six Month LIBOR | 12/17/13 | (10 | ) | ||||||
Barclays Bank PLC | SEK | 900 | Three Month LIBOR | 4.750% | 12/17/13 | 5 | |||||||
Barclays Bank PLC | SEK | 720 | 4.750% | Three Month LIBOR | 12/17/13 | (4 | ) | ||||||
Barclays Bank PLC | SEK | 16,700 | Three Month LIBOR | 5.000% | 12/17/18 | 68 | |||||||
Barclays Bank PLC | SEK | 3,500 | 5.000% | Three Month LIBOR | 12/17/18 | (13 | ) | ||||||
Barclays Bank PLC | USD | 510 | 4.250% | Three Month LIBOR | 12/17/13 | (5 | ) | ||||||
Barclays Bank PLC | USD | 80 | Three Month LIBOR | 4.250% | 12/17/13 | 1 | |||||||
Barclays Bank PLC | USD | 580 | 5.000% | Three Month LIBOR | 12/17/38 | (1 | ) | ||||||
Bear Stearns | USD | 2,800 | Three Month LIBOR | 5.282% | 08/20/12 | (201 | ) | ||||||
BNP Paribas | EUR | 500 | 2.090% | Consumer Price Index (France) | 10/15/10 | (12 | ) | ||||||
Citibank | EUR | 180 | Six Month LIBOR | 4.750% | 12/17/18 | 7 | |||||||
Citibank | EUR | 410 | 5.000% | Six Month LIBOR | 12/17/38 | 4 | |||||||
Citibank | HUF | 45,000 | 8.200% | Six Month LIBOR | 04/21/13 | (2 | ) | ||||||
Citibank | JPY | 145,000 | 1.645% | Six Month LIBOR | 04/25/18 | (24 | ) | ||||||
Citibank | SEK | 1,300 | 4.750% | Three Month LIBOR | 12/17/13 | (7 | ) | ||||||
Citibank | SEK | 1,700 | 5.000% | Three Month LIBOR | 12/17/18 | (6 | ) | ||||||
Citibank | USD | 1,600 | Three Month LIBOR | 5.000% | 12/17/38 | 9 | |||||||
Citigroup Global Markets Inc. | USD | 3,080 | 4.228% | Three Month LIBOR | 06/10/11 | (3 | ) | ||||||
Citigroup Global Markets Inc. | USD | 5,130 | Three Month LIBOR | 4.206% | 06/11/11 | (7 | ) | ||||||
Citigroup Global Markets Inc. | USD | 750 | Three Month LIBOR | 5.058% | 06/10/19 | (8 | ) | ||||||
Citigroup Global Markets Inc. | USD | 1,250 | Three Month LIBOR | 4.970% | 06/11/19 | (5 | ) | ||||||
Credit Suisse First Boston | CAD | 480 | 3.793% | Three Month LIBOR | 06/05/13 | (4 | ) | ||||||
Credit Suisse First Boston | CAD | 630 | 4.080% | Three Month LIBOR | 06/10/13 | 3 | |||||||
Credit Suisse First Boston | EUR | 740 | Six Month LIBOR | 4.500% | 12/17/10 | 18 | |||||||
Credit Suisse First Boston | EUR | 800 | 4.792% | Six Month LIBOR | 03/18/11 | (12 | ) | ||||||
Credit Suisse First Boston | EUR | 2,410 | 4.774% | Six Month LIBOR | 03/18/11 | (36 | ) | ||||||
Credit Suisse First Boston | EUR | 130 | 4.500% | Six Month LIBOR | 12/17/13 | (5 | ) | ||||||
Credit Suisse First Boston | EUR | 120 | 4.500% | Six Month LIBOR | 12/17/13 | (5 | ) | ||||||
Credit Suisse First Boston | EUR | 100 | 4.500% | Six Month LIBOR | 12/17/13 | (4 | ) | ||||||
Credit Suisse First Boston | EUR | 780 | Six Month LIBOR | 4.696% | 03/18/16 | 23 | |||||||
Credit Suisse First Boston | EUR | 2,330 | Six Month LIBOR | 4.668% | 03/18/16 | 73 |
See accompanying notes which are an integral part of the financial statements.
66 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Interest Rate Swaps Contracts | |||||||||||||
Counter | Notional Amount | Fund Receives | Fund Pays | Termination Date | Market Value $ | ||||||||
Credit Suisse First Boston | EUR | 190 | Six Month LIBOR | 4.750% | 12/17/18 | 7 | |||||||
Credit Suisse First Boston | EUR | 310 | 4.965% | Six Month LIBOR | 03/18/24 | (6 | ) | ||||||
Credit Suisse First Boston | EUR | 920 | 4.934% | Six Month LIBOR | 03/18/24 | (23 | ) | ||||||
Credit Suisse First Boston | EUR | 930 | 5.000% | Six Month LIBOR | 12/17/38 | 24 | |||||||
Credit Suisse First Boston | GBP | 100 | 5.000% | Six Month LIBOR | 06/15/09 | (2 | ) | ||||||
Credit Suisse First Boston | GBP | 100 | Six Month LIBOR | 5.250% | 12/17/13 | 6 | |||||||
Credit Suisse First Boston | JPY | 162,000 | Six Month LIBOR | 2.099% | 06/13/18 | (34 | ) | ||||||
Credit Suisse First Boston | SEK | 1,700 | 5.000% | Six Month LIBOR | 12/17/18 | (6 | ) | ||||||
Credit Suisse First Boston | SEK | 6,700 | Three Month LIBOR | 5.000% | 12/17/18 | 27 | |||||||
Credit Suisse First Boston | USD | 2,100 | 4.250% | Three Month LIBOR | 12/17/13 | (20 | ) | ||||||
Credit Suisse First Boston | USD | 270 | 4.250% | Three Month LIBOR | 12/17/13 | (3 | ) | ||||||
Credit Suisse First Boston | USD | 700 | Three Month LIBOR | 4.750% | 12/17/18 | 3 | |||||||
Credit Suisse First Boston | USD | 2,300 | Three Month LIBOR | 4.750% | 12/17/23 | 48 | |||||||
Credit Suisse First Boston | USD | 1,460 | Three Month LIBOR | 5.000% | 12/17/38 | 8 | |||||||
Credit Suisse First Boston | USD | 300 | 5.000% | Three Month LIBOR | 12/17/38 | (2 | ) | ||||||
Deutsche Bank | BRL | 700 | 13.950% | Three Month LIBOR | 01/02/12 | 8 | |||||||
Deutsche Bank | BRL | 1,000 | 13.980% | Brazil Interbank Deposit Rate | 01/02/12 | 12 | |||||||
Deutsche Bank | CAD | 180 | Three Month LIBOR | 4.000% | 12/17/13 | 1 | |||||||
Deutsche Bank | EUR | 5,790 | 5.000% | Six Month LIBOR | 06/11/10 | (52 | ) | ||||||
Deutsche Bank | EUR | 1,740 | 4.500% | Six Month LIBOR | 12/17/10 | (42 | ) | ||||||
Deutsche Bank | EUR | 1,110 | 4.500% | Six Month LIBOR | 12/17/10 | (27 | ) | ||||||
Deutsche Bank | EUR | 1,400 | 1.000% | 4.750% | 07/04/17 | 45 | |||||||
Deutsche Bank | EUR | 680 | 4.750% | Six Month LIBOR | 12/17/18 | (25 | ) | ||||||
Deutsche Bank | EUR | 310 | Six Month LIBOR | 5.000% | 12/17/38 | (4 | ) | ||||||
Deutsche Bank | EUR | 960 | 5.000% | Six Month LIBOR | 12/17/38 | 9 | |||||||
Deutsche Bank | JPY | 105,000 | 1.183% | Six Month LIBOR | 12/17/10 | (3 | ) | ||||||
Deutsche Bank | JPY | 276,000 | 1.181% | Six Month LIBOR | 12/17/10 | (8 | ) | ||||||
Deutsche Bank | JPY | 290,000 | 1.183% | Six Month LIBOR | 12/17/10 | (8 | ) | ||||||
Deutsche Bank | JPY | 139,000 | 1.160% | Six Month LIBOR | 12/17/10 | (5 | ) | ||||||
Deutsche Bank | JPY | 67,000 | Six Month LIBOR | 1.703% | 12/17/15 | 1 | |||||||
Deutsche Bank | JPY | 175,000 | Six Month LIBOR | 1.699% | 12/17/15 | 3 | |||||||
Deutsche Bank | JPY | 184,000 | Six Month LIBOR | 1.691% | 12/17/15 | 4 | |||||||
Deutsche Bank | JPY | 88,000 | Six Month LIBOR | 1.641% | 12/17/15 | 5 | |||||||
Deutsche Bank | JPY | 114,000 | Six Month LIBOR | 2.075% | 06/16/18 | (21 | ) | ||||||
Deutsche Bank | JPY | 14,000 | 2.595% | Six Month LIBOR | 12/17/38 | 2 | |||||||
Deutsche Bank | JPY | 35,000 | 2.594% | Six Month LIBOR | 12/17/38 | 4 | |||||||
Deutsche Bank | JPY | 37,000 | 2.585% | Six Month LIBOR | 12/17/38 | 4 | |||||||
Deutsche Bank | JPY | 18,000 | 2.540% | Six Month LIBOR | 12/17/38 | — | |||||||
Deutsche Bank | USD | 1,540 | Three Month LIBOR | 3.780% | 12/24/10 | 5 | |||||||
Deutsche Bank | USD | 2,290 | Three Month LIBOR | 3.868% | 12/29/10 | 4 | |||||||
Deutsche Bank | USD | 1,520 | Three Month LIBOR | 4.000% | 12/29/10 | (1 | ) | ||||||
Deutsche Bank | USD | 3,670 | Three Month LIBOR | 3.658% | 01/07/11 | 22 | |||||||
Deutsche Bank | USD | 3,110 | Three Month LIBOR | 3.161% | 01/28/11 | 50 | |||||||
Deutsche Bank | USD | 1,700 | 3.750% | Three Month LIBOR | 12/17/11 | (21 | ) | ||||||
Deutsche Bank | USD | 2,600 | Three Month LIBOR | 4.250% | 12/17/13 | 25 | |||||||
Deutsche Bank | USD | 6,000 | 4.250% | Three Month LIBOR | 12/17/13 | (58 | ) |
See accompanying notes which are an integral part of the financial statements.
Core Bond Fund | 67 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Interest Rate Swaps Contracts | |||||||||||||
Counter | Notional Amount | Fund Receives | Fund Pays | Termination Date | Market Value $ | ||||||||
Deutsche Bank | USD | 500 | 4.250% | Three Month LIBOR | 12/17/13 | (5 | ) | ||||||
Deutsche Bank | USD | 500 | 4.250% | Three Month LIBOR | 12/17/13 | (5 | ) | ||||||
Deutsche Bank | USD | 1,900 | Three Month LIBOR | 4.500% | 12/17/15 | 15 | |||||||
Deutsche Bank | USD | 1,350 | 4.520% | Three Month LIBOR | 12/24/15 | (9 | ) | ||||||
Deutsche Bank | USD | 2,000 | 4.630% | Three Month LIBOR | 12/29/15 | (1 | ) | ||||||
Deutsche Bank | USD | 1,300 | 4.745% | Three Month LIBOR | 12/29/15 | 8 | |||||||
Deutsche Bank | USD | 3,200 | 4.487% | Three Month LIBOR | 01/07/16 | (30 | ) | ||||||
Deutsche Bank | USD | 2,700 | 4.224% | Three Month LIBOR | 01/28/16 | (70 | ) | ||||||
Deutsche Bank | USD | 600 | 4.750% | Three Month LIBOR | 12/17/18 | (3 | ) | ||||||
Deutsche Bank | USD | 300 | 4.750% | Three Month LIBOR | 12/17/18 | (1 | ) | ||||||
Deutsche Bank | USD | 300 | 4.750% | Three Month LIBOR | 12/17/18 | (1 | ) | ||||||
Deutsche Bank | USD | 600 | Three Month LIBOR | 5.000% | 12/17/28 | 1 | |||||||
Deutsche Bank | USD | 440 | 5.000% | Three Month LIBOR | 12/17/38 | — | |||||||
Deutsche Bank | USD | 1,510 | Three Month LIBOR | 5.000% | 12/17/38 | 8 | |||||||
Deutsche Bank | USD | 370 | Three Month LIBOR | 5.011% | 12/24/38 | 2 | |||||||
Deutsche Bank | USD | 550 | Three Month LIBOR | 5.121% | 12/29/38 | (7 | ) | ||||||
Deutsche Bank | USD | 370 | Three Month LIBOR | 5.215% | 12/29/38 | (10 | ) | ||||||
Deutsche Bank | USD | 880 | Three Month LIBOR | 5.017% | 01/07/39 | 3 | |||||||
Deutsche Bank | USD | 740 | Three Month LIBOR | 4.939% | 01/28/39 | 12 | |||||||
Financial Directions Inc. | HUF | 21,000 | 8.280% | Six Month LIBOR | 04/04/13 | (3 | ) | ||||||
Financial Directions Inc. | HUF | 40,000 | 8.140% | Six Month LIBOR | 04/18/13 | (2 | ) | ||||||
Goldman Sachs | GBP | 900 | 5.000% | Six Month LIBOR | 06/15/09 | (21 | ) | ||||||
Goldman Sachs | GBP | 500 | 6.000% | Six Month LIBOR | 06/19/09 | (2 | ) | ||||||
HSBC | GBP | 300 | 5.000% | Six Month LIBOR | 09/17/13 | (26 | ) | ||||||
JP Morgan | BRL | 1,430 | 12.395% | Brazil Interbank Deposit Rate | 01/04/10 | (12 | ) | ||||||
JP Morgan | BRL | 1,000 | 14.170% | Brazil Interbank Deposit Rate | 01/03/11 | (10 | ) | ||||||
JP Morgan | EUR | 1,930 | Six Month LIBOR | 5.000% | 06/11/10 | 17 | |||||||
JP Morgan | EUR | 1,680 | 4.500% | Six Month LIBOR | 12/17/10 | (40 | ) | ||||||
JP Morgan | EUR | 1,730 | 4.500% | Six Month LIBOR | 12/17/10 | (42 | ) | ||||||
JP Morgan | EUR | 500 | 1.958% | Consumer Price Index (France) | 04/10/12 | (30 | ) | ||||||
JP Morgan | EUR | 470 | 4.750% | Six Month LIBOR | 07/04/17 | (15 | ) | ||||||
JP Morgan | EUR | 260 | 4.750% | Six Month LIBOR | 12/17/18 | (9 | ) | ||||||
JP Morgan | EUR | 130 | Six Month LIBOR | 4.750% | 12/17/18 | 5 | |||||||
JP Morgan | EUR | 60 | Six Month LIBOR | 4.750% | 12/17/18 | 2 | |||||||
JP Morgan | EUR | 470 | Six Month LIBOR | 5.000% | 12/17/38 | (4 | ) | ||||||
JP Morgan | HUF | 20,000 | 8.280% | Six Month LIBOR | 04/04/13 | (2 | ) | ||||||
JP Morgan | SEK | 1,300 | 5.000% | Three Month LIBOR | 12/17/18 | (5 | ) | ||||||
JP Morgan | SEK | 600 | 5.000% | Three Month LIBOR | 12/17/18 | (2 | ) | ||||||
JP Morgan | USD | 1,700 | 3.750% | Three Month LIBOR | 12/17/11 | (21 | ) | ||||||
JP Morgan | USD | 2,000 | 3.750% | Three Month LIBOR | 12/17/11 | (25 | ) | ||||||
JP Morgan | USD | 1,700 | 4.250% | Three Month LIBOR | 12/17/13 | (16 | ) | ||||||
JP Morgan | USD | 1,200 | 4.250% | Three Month LIBOR | 12/17/13 | 14 | |||||||
JP Morgan | USD | 600 | Three Month LIBOR | 4.250% | 12/17/13 | 6 | |||||||
JP Morgan | USD | 15,300 | 4.500% | Three Month LIBOR | 12/17/15 | (118 | ) | ||||||
JP Morgan | USD | 1,900 | Three Month LIBOR | 4.500% | 12/17/15 | 15 | |||||||
JP Morgan | USD | 1,600 | Three Month LIBOR | 4.750% | 12/17/18 | 7 |
See accompanying notes which are an integral part of the financial statements.
68 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Interest Rate Swaps Contracts | |||||||||||||
Counter | Notional Amount | Fund Receives | Fund Pays | Termination Date | Market Value $ | ||||||||
JP Morgan | USD | 900 | Three Month LIBOR | 4.750% | 12/17/18 | 4 | |||||||
JP Morgan | USD | 1,500 | Three Month LIBOR | 4.750% | 12/17/18 | 7 | |||||||
JP Morgan | USD | 200 | Three Month LIBOR | 4.750% | 12/17/18 | 1 | |||||||
JP Morgan | USD | 300 | Three Month LIBOR | 4.750% | 12/17/18 | 1 | |||||||
JP Morgan | USD | 1,700 | Three Month LIBOR | 4.750% | 12/17/23 | 35 | |||||||
JP Morgan | USD | 6,000 | Three Month LIBOR | 4.750% | 12/17/23 | 125 | |||||||
JP Morgan | USD | 1,600 | Three Month LIBOR | 4.750% | 12/17/23 | 33 | |||||||
JP Morgan | USD | 800 | Three Month LIBOR | 5.000% | 12/17/28 | 1 | |||||||
JP Morgan | USD | 900 | 5.000% | Three Month LIBOR | 12/17/28 | (1 | ) | ||||||
JP Morgan | USD | 200 | 5.000% | Three Month LIBOR | 12/17/28 | — | |||||||
JP Morgan | USD | 700 | 5.000% | Three Month LIBOR | 12/17/38 | (4 | ) | ||||||
JP Morgan | USD | 660 | 5.000% | Three Month LIBOR | 12/17/38 | (4 | ) | ||||||
Lehman Brothers | EUR | 2,060 | Six Month LIBOR | 5.000% | 06/11/10 | 19 | |||||||
Lehman Brothers | EUR | 900 | Six Month LIBOR | 4.500% | 12/17/10 | 22 | |||||||
Lehman Brothers | EUR | 2,190 | 4.328% | Six Month LIBOR | 03/18/11 | (60 | ) | ||||||
Lehman Brothers | EUR | 1,390 | 4.400% | Six Month LIBOR | 03/18/11 | (36 | ) | ||||||
Lehman Brothers | EUR | 2,100 | Six Month LIBOR | 4.500% | 03/18/16 | 97 | |||||||
Lehman Brothers | EUR | 1,340 | Six Month LIBOR | 4.470% | 03/18/16 | 65 | |||||||
Lehman Brothers | EUR | 500 | 4.750% | Six Month LIBOR | 07/04/17 | (16 | ) | ||||||
Lehman Brothers | EUR | 1,000 | 4.750% | Six Month LIBOR | 12/17/18 | (36 | ) | ||||||
Lehman Brothers | EUR | 820 | 4.875% | Six Month LIBOR | 03/18/24 | (29 | ) | ||||||
Lehman Brothers | EUR | 530 | 4.793% | Six Month LIBOR | 03/18/27 | (25 | ) | ||||||
Lehman Brothers | EUR | 1,040 | 5.000% | Six Month LIBOR | 12/17/38 | 10 | |||||||
Lehman Brothers | EUR | 540 | Six Month LIBOR | 5.000% | 12/17/38 | (5 | ) | ||||||
Lehman Brothers | EUR | 550 | Six Month LIBOR | 5.000% | 12/17/38 | (5 | ) | ||||||
Lehman Brothers | EUR | 240 | Six Month LIBOR | 5.000% | 12/17/38 | (1 | ) | ||||||
Lehman Brothers | JPY | 241,000 | 1.188% | Six Month LIBOR | 12/17/10 | (7 | ) | ||||||
Lehman Brothers | JPY | 153,000 | Six Month LIBOR | 1.709% | 12/17/15 | 1 | |||||||
Lehman Brothers | JPY | 31,000 | 2.648% | Six Month LIBOR | 12/17/38 | 7 | |||||||
Lehman Brothers | USD | 900 | 4.000% | Three Month LIBOR | 12/17/10 | 1 | |||||||
Lehman Brothers | USD | 6,920 | 4.170% | Three Month LIBOR | 06/03/11 | (12 | ) | ||||||
Lehman Brothers | USD | 3,080 | Three Month LIBOR | 4.380% | 06/11/11 | 6 | |||||||
Lehman Brothers | USD | 2,300 | 4.478% | Three Month LIBOR | 06/13/11 | 8 | |||||||
Lehman Brothers | USD | 3,080 | 4.740% | Three Month LIBOR | 06/17/11 | 26 | |||||||
Lehman Brothers | USD | 1,690 | 4.928% | Three Month LIBOR | 06/03/19 | (2 | ) | ||||||
Lehman Brothers | USD | 750 | Three Month LIBOR | 4.970% | 06/11/19 | (3 | ) | ||||||
Lehman Brothers | USD | 560 | Three Month LIBOR | 5.040% | 06/13/19 | (5 | ) | ||||||
Lehman Brothers | USD | 750 | Three Month LIBOR | 5.190% | 06/17/19 | (15 | ) | ||||||
Lehman Brothers | USD | 200 | Three Month LIBOR | 5.000% | 12/17/28 | — | |||||||
Lehman Brothers | USD | 1,640 | Three Month LIBOR | 5.000% | 12/17/38 | 9 | |||||||
Lehman Brothers | USD | 730 | 5.000% | Three Month LIBOR | 12/17/38 | (4 | ) | ||||||
Lehman Brothers | USD | 770 | 5.000% | Three Month LIBOR | 12/17/38 | (4 | ) | ||||||
Lehman Brothers | USD | 340 | 5.000% | Three Month LIBOR | 12/17/38 | (2 | ) | ||||||
Merrill Lynch | BRL | 700 | 11.980% | Brazil Interbank Deposit Rate | 01/02/12 | (26 | ) | ||||||
Merrill Lynch | BRL | 800 | 12.540% | Brazil Interbank Deposit Rate | 01/02/12 | (24 | ) | ||||||
Merrill Lynch | BRL | 200 | 12.948% | Brazil Interbank Deposit Rate | 01/04/10 | (1 | ) | ||||||
Merrill Lynch | CAD | 670 | 3.756% | Three Month LIBOR | 06/03/13 | (6 | ) | ||||||
Merrill Lynch | CAD | 670 | 3.681% | Three Month LIBOR | 06/04/13 | (9 | ) |
See accompanying notes which are an integral part of the financial statements.
Core Bond Fund | 69 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Interest Rate Swaps Contracts | |||||||||||||
Counter | Notional Amount | Fund Receives | Fund Pays | Termination Date | Market Value $ | ||||||||
Merrill Lynch | CAD | 850 | 4.053% | Three Month LIBOR | 06/11/13 | 3 | |||||||
Merrill Lynch | EUR | 850 | Six Month LIBOR | 4.500% | 12/17/10 | 20 | |||||||
Merrill Lynch | GBP | 100 | Six Month LIBOR | 4.000% | 12/15/35 | 4 | |||||||
Merrill Lynch | JPY | 36,000 | 1.673% | Six Month LIBOR | 04/28/18 | (5 | ) | ||||||
Merrill Lynch | USD | 800 | 4.000% | Three Month LIBOR | 12/17/10 | 1 | |||||||
Merrill Lynch | USD | 400 | Three Month LIBOR | 5.000% | 12/17/38 | 2 | |||||||
Morgan Stanley | BRL | 400 | 12.670% | Brazil Interbank Deposit Rate | 01/04/10 | (6 | ) | ||||||
Morgan Stanley | EUR | 5,160 | Six Month LIBOR | 4.500% | 12/17/13 | 208 | |||||||
Morgan Stanley | JPY | 79,000 | 1.624% | Six Month LIBOR | 04/25/18 | (15 | ) | ||||||
Morgan Stanley | SEK | 6,700 | Three Month LIBOR | 5.000% | 12/17/18 | 27 | |||||||
Morgan Stanley | USD | 9,500 | 4.000% | Three Month LIBOR | 06/17/10 | 3 | |||||||
Morgan Stanley | USD | 300 | Three Month LIBOR | 5.000% | 12/17/18 | (5 | ) | ||||||
Morgan Stanley | USD | 200 | Three Month LIBOR | 5.000% | 12/17/28 | — | |||||||
Morgan Stanley | USD | 300 | Three Month LIBOR | 5.000% | 12/17/38 | 2 | |||||||
Royal Bank of Scotland | CAD | 620 | Six Month LIBOR | 3.740% | 04/23/13 | 6 | |||||||
Royal Bank of Scotland | CAD | 1,240 | Three Month LIBOR | 3.826% | 04/24/13 | 6 | |||||||
Royal Bank of Scotland | CAD | 620 | Three Month LIBOR | 3.899% | 04/25/13 | 2 | |||||||
Royal Bank of Scotland | CAD | 790 | Three Month LIBOR | 3.802% | 04/29/13 | 5 | |||||||
Royal Bank of Scotland | CAD | 460 | Three Month LIBOR | 3.750% | 04/30/13 | 4 | |||||||
Royal Bank of Scotland | CAD | 470 | Three Month LIBOR | 4.000% | 12/17/13 | 2 | |||||||
Royal Bank of Scotland | CAD | 350 | Three Month LIBOR | 4.000% | 12/17/13 | 1 | |||||||
Royal Bank of Scotland | EUR | 100 | 1.955% | Consumer Price Index (France) | 03/28/12 | (5 | ) | ||||||
Royal Bank of Scotland | EUR | 150 | Six Month LIBOR | 4.750% | 12/17/18 | 5 | |||||||
Royal Bank of Scotland | EUR | 410 | Six Month LIBOR | 5.000% | 12/17/38 | (4 | ) | ||||||
Royal Bank of Scotland | GBP | 540 | Six Month LIBOR | 5.250% | 12/17/18 | 27 | |||||||
Royal Bank of Scotland | GBP | 100 | Six Month LIBOR | 4.000% | 12/15/36 | 25 | |||||||
Royal Bank of Scotland | SEK | 1,400 | 5.000% | Three Month LIBOR | 12/17/18 | (5 | ) | ||||||
Royal Bank of Scotland | USD | 2,100 | 4.000% | Three Month LIBOR | 06/17/10 | 1 | |||||||
Royal Bank of Scotland | USD | 300 | Three Month LIBOR | 5.000% | 12/17/18 | (5 | ) | ||||||
Royal Bank of Scotland | USD | 200 | Three Month LIBOR | 5.000% | 12/17/28 | — | |||||||
Royal Bank of Scotland | USD | 570 | 5.000% | Three Month LIBOR | 12/17/38 | (3 | ) | ||||||
Salomon Smith Barney | HUF | 21,000 | 8.470% | Six Month LIBOR | 04/03/13 | (1 | ) | ||||||
UBS | AUD | 2,700 | 7.000% | Three Month LIBOR | 09/15/09 | (23 | ) | ||||||
UBS | AUD | 300 | 7.500% | Three Month LIBOR | 03/15/10 | (1 | ) | ||||||
UBS | AUD | 1,600 | 7.500% | Six Month LIBOR | 03/15/11 | (9 | ) | ||||||
UBS | BRL | 400 | 12.410% | Brazil Interbank Deposit Rate | 01/04/10 | (6 | ) | ||||||
UBS | BRL | 900 | 10.575% | Brazil Interbank Deposit Rate | 01/02/12 | (55 | ) | ||||||
UBS | GBP | 660 | Six Month LIBOR | 5.250% | 12/17/13 | 40 | |||||||
UBS | GBP | 130 | 5.250% | Six Month LIBOR | 12/17/13 | (8 | ) | ||||||
UBS | JPY | 14,000 | 1.500% | Six Month LIBOR | 12/17/13 | (1 | ) | ||||||
UBS | JPY | 18,000 | Six Month LIBOR | 1.500% | 12/17/13 | 1 | |||||||
UBS | JPY | 26,000 | Six Month LIBOR | 1.500% | 12/17/13 | 1 | |||||||
UBS | JPY | 37,000 | 1.500% | Six Month LIBOR | 12/17/13 | (6 | ) | ||||||
UBS | SEK | 690 | Three Month LIBOR | 4.750% | 12/17/13 | 3 | |||||||
UBS | USD | 700 | Three Month LIBOR | 5.000% | 12/17/38 | 4 | |||||||
Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $248 | 325 | ||||||||||||
See accompanying notes which are an integral part of the financial statements.
70 | Core Bond Fund |
Table of Contents
Russell Investment Funds
Core Bond Fund
Schedule of Investments, continued — June 30, 2008 (Unaudited)
Amounts in thousands
Credit Default Swap Contracts | ||||||||||||||
Reference | Counter | Notional Amount | Fund (Pays)/ Receives Fixed Rate | Termination Date | Market Value $ | |||||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Credit Suisse First Boston | USD | 350 | 0.090 | 08/25/37 | (178 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Credit Suisse First Boston | USD | 350 | 0.090 | 08/25/37 | (178 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Credit Suisse First Boston | USD | 200 | 0.760 | 01/25/38 | (108 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Credit Suisse First Boston | USD | 300 | 0.760 | 01/25/38 | (162 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Lehman Brothers | USD | 400 | 0.090 | 08/25/37 | (203 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Lehman Brothers | USD | 500 | 0.090 | 08/25/37 | (254 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Lehman Brothers | USD | 350 | 0.090 | 08/25/37 | (178 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Lehman Brothers | USD | 700 | 0.760 | 01/25/38 | (378 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Lehman Brothers | USD | 500 | 0.760 | 01/25/38 | (270 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Lehman Brothers | USD | 600 | 0.170 | 05/25/46 | (477 | ) | |||||||
ABX - HE Index for Sub-Prime Home Equity Sector | Deutsche Bank | USD | 500 | 0.110 | 05/25/46 | (154 | ) | |||||||
CIT Group Inc. | Barclays Bank PLC | USD | 600 | 5.650 | 03/20/13 | (31 | ) | |||||||
CIT Group Inc. | JP Morgan | USD | 200 | 5.170 | 03/20/13 | (13 | ) | |||||||
Citigroup Inc. | Credit Suisse First Boston | USD | 600 | 0.890 | 03/20/13 | (11 | ) | |||||||
CMBS AAA Index | Morgan Stanley | USD | 600 | 0.080 | 12/13/49 | (56 | ) | |||||||
Dow Jones CDX High Volatility Index | Barclays Bank PLC | USD | 300 | (1.550 | ) | 06/20/13 | — | |||||||
Dow Jones CDX High Volatility Index | Citibank | USD | 500 | 2.144 | 06/20/12 | (30 | ) | |||||||
Dow Jones CDX High Volatility Index | Deutsche Bank | USD | 800 | 0.707 | 12/20/12 | 6 | ||||||||
Dow Jones CDX High Volatility Index | Deutsche Bank | USD | 500 | (1.550 | ) | 06/20/13 | — | |||||||
Dow Jones CDX High Volatility Index | Morgan Stanley | USD | 2,000 | (1.550 | ) | 06/20/13 | 13 | |||||||
Dow Jones CDX High Volatility Index | Pershing LLC | USD | 2,800 | (1.550 | ) | 06/20/13 | 3 | |||||||
Federal Home Loan Mortgage Corp. | Barclays Bank PLC | USD | 300 | 0.720 | 03/20/13 | 1 | ||||||||
Ford Motor Credit Co. | Barclays Bank PLC | USD | 1,000 | 6.150 | 09/20/12 | (181 | ) | |||||||
Ford Motor Credit Co. | Goldman Sachs | USD | 600 | 5.850 | 09/20/12 | (113 | ) | |||||||
Gaz Capital for Gazprom | Barclays Bank PLC | USD | 300 | 1.600 | 12/20/12 | (6 | ) | |||||||
Gaz Capital for Gazprom | JP Morgan | USD | 100 | 0.970 | 11/20/08 | — | ||||||||
General Motors Acceptance Corp. | Lehman Brothers | USD | 500 | 1.680 | 09/20/08 | (12 | ) | |||||||
General Motors Acceptance Corp. | Merrill Lynch | USD | 1,000 | 1.850 | 09/20/09 | (156 | ) | |||||||
General Motors Acceptance Corp. | Morgan Stanley | USD | 1,000 | 0.970 | 09/20/08 | (28 | ) | |||||||
General Motors Corp. | Citibank | USD | 2,000 | 4.630 | 12/20/12 | (643 | ) | |||||||
Indonesia Government International Bond | Lehman Brothers | USD | 100 | 0.400 | 12/20/08 | — | ||||||||
JSC Gazprom | Morgan Stanley | USD | 100 | 2.180 | 02/20/13 | 1 | ||||||||
JSC Gazprom | Morgan Stanley | USD | 1,000 | 2.480 | 02/20/13 | 24 | ||||||||
Lehman Brothers | JP Morgan | USD | 100 | 0.300 | 09/20/08 | (1 | ) | |||||||
Mexico Government International Bond | Morgan Stanley | USD | 100 | 0.750 | 01/20/12 | (1 | ) | |||||||
SLM Corp. | Bank of America | USD | 200 | 4.550 | 03/20/09 | (1 | ) | |||||||
SLM Corp. | Citibank | USD | 200 | 4.850 | 03/20/13 | 2 | ||||||||
Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($1,858) |
| (3,773 | ) | |||||||||||
See accompanying notes which are an integral part of the financial statements.
Core Bond Fund | 71 |
Table of Contents
Russell Investment Funds
Core Bond Fund
Presentation of Portfolio Holdings — June 30, 2008 (Unaudited)
Categories | % of Net Assets | ||
Asset-Backed Securities | 3.9 | ||
Corporate Bonds and Notes | 19.2 | ||
International Debt | 4.3 | ||
Loan Agreements | 0.4 | ||
Mortgage-Backed Securities | 62.8 | ||
Municipal Bonds | 0.5 | ||
Non-US Bonds | 0.6 | ||
United States Government Treasuries | 4.6 | ||
Common Stocks | — | * | |
Preferred Stocks | 0.4 | ||
Options Purchased | 0.1 | ||
Short-Term Investments | 16.5 | ||
Other Securities | 11.0 | ||
Total Investments | 124.3 | ||
Other Assets and Liabilities, Net | (24.3 | ) | |
100.0 | |||
Futures Contracts | 0.1 | ||
Options Written | (0.1 | ) | |
Foreign Currency Exchange Contracts | (0.1 | ) | |
Interest Rate Swap Contracts | 0.1 | ||
Credit Default Swap Contracts | (1.0 | ) |
* | Less than .05% of net assets. |
See accompanying notes which are an integral part of the financial statements.
72 | Core Bond Fund |
Table of Contents
Notes to Schedules of Investments — June 30, 2008 (Unaudited)
Footnotes:
(Æ) | Nonincome-producing security. |
(ö) | Real Estate Investment Trust (REIT). |
(§) | All or a portion of the shares of this security are held 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) | 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. |
(m) | Bond is insured by a guarantor. |
(æ) | Pre-refunded: These bonds are collateralized by US 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. The rate noted is for descriptive purposes; effective yield may vary. |
(Ø) | In default. |
(ß) | Illiquid security. |
(×) | 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. |
(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. |
(Å) | Illiquid and restricted security. |
(å) | Currency balances were held in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. See Note 2. |
Abbreviations:
144A - Represents private placement security for qualified buyers according to rule 144A of the Securities Act of 1933.
ADR - American Depositary Receipt
ADS - American Depositary Share
CIBOR - Copenhagen Interbank Offered Rate
CME - Chicago Mercantile Exchange
CMO - Collateralized Mortgage Obligation
CVO - Contingent Value Obligation
FDIC - Federal Deposit Insurance Company
GDR - Global Depositary Receipt
GDS - Global Depositary Share
LIBOR - London Interbank Offered Rate
NIBOR - Norwegian Interbank Offered Rate
PIK - Payment in Kind
REMIC - Real Estate Mortgage Investment Conduit
STRIP - Separate Trading of Registered Interest and Principal of Securities
TBA - To Be Announced Security
Foreign Currency Abbreviations:
ARS - Argentine peso | HKD - Hong Kong dollar | PLN - Polish zloty | ||
AUD - Australian dollar | HUF - Hungarian forint | RUB - Russian ruble | ||
BRL - Brazilian real | IDR - Indonesian rupiah | SEK - Swedish krona | ||
CAD - Canadian dollar | ILS - Israeli shekel | SGD - Singapore dollar | ||
CHF - Swiss franc | INR - Indian rupee | SKK - Slovakian koruna | ||
CLP - Chilean peso | JPY - Japanese yen | THB - Thai baht | ||
CNY - Chinese renminbi yuan | KES - Kenyan schilling | TRY - Turkish lira | ||
COP - Colombian peso | KRW - South Korean won | TWD - Taiwanese dollar | ||
CRC - Costa Rica colon | MXN - Mexican peso | USD - United States dollar | ||
CZK - Czech koruna | MYR - Malaysian ringgit | VEB - Venezuelan bolivar | ||
DKK - Danish krone | NOK - Norweigian Krone | VND - Vietnamese dong | ||
EGP - Egyptian pound | NZD - New Zealand dollar | ZAR - South African rand | ||
EUR - Euro | PEN - Peruvian nouveau sol | |||
GBP - British pound sterling | PHP - Philippine peso |
Notes to Schedules of Investments | 73 |
Table of Contents
Statements of Assets and Liabilities — June 30, 2008 (Unaudited)
Amounts in thousands | Multi-Style Equity Fund | Aggressive Equity Fund | Non-U.S. Fund | Real Estate Securities Fund | Core Bond Fund | ||||||||||
Assets | |||||||||||||||
Investments, at identified cost | $ | 532,157 | $ | 286,589 | $ | 407,539 | $ | 523,710 | $ | 475,000 | |||||
Investments, at market*** | 536,574 | 289,188 | 410,313 | 579,745 | 462,792 | ||||||||||
Cash | — | — | 63 | — | 180 | ||||||||||
Cash (restricted) | — | — | 2,914 | — | 1,387 | ||||||||||
Foreign currency holdings* | — | — | 3,233 | 100 | 462 | ||||||||||
Unrealized appreciation on foreign currency exchange contracts | — | — | 1,592 | — | 188 | ||||||||||
Receivables: | |||||||||||||||
Dividends and interest | 543 | 187 | 675 | 1,933 | 2,828 | ||||||||||
Dividends from affiliated money market funds | 57 | 17 | 64 | 46 | 35 | ||||||||||
Investments sold | 4,965 | 4,046 | 4,215 | 1,815 | 56,866 | ||||||||||
Fund shares sold | 225 | 75 | 24 | 198 | 47 | ||||||||||
Foreign taxes recoverable | — | — | 51 | — | — | ||||||||||
From Adviser | 19 | 41 | 17 | — | 48 | ||||||||||
Daily variation margin on futures contracts | — | — | 432 | — | 597 | ||||||||||
Prepaid expenses | 2 | 1 | 2 | 2 | 1 | ||||||||||
Unrealized appreciation on index swap contracts | — | — | 210 | — | — | ||||||||||
Interest rate swap contracts, at market value**** | — | — | — | — | 2,152 | ||||||||||
Credit default swap contracts, at market value***** | — | — | — | — | 50 | ||||||||||
Total assets | 542,385 | 293,555 | 423,805 | 583,839 | 527,633 | ||||||||||
Liabilities | |||||||||||||||
Payables: | |||||||||||||||
Investments purchased | 3,987 | 3,102 | 4,290 | 2,716 | 106,726 | ||||||||||
Fund shares redeemed | 30 | 46 | 58 | 389 | 203 | ||||||||||
Accrued fees to affiliates | 296 | 168 | 318 | 355 | 187 | ||||||||||
Other accrued expenses | 46 | 44 | 75 | 60 | 55 | ||||||||||
Daily variation margin on futures contracts | 10 | 92 | 16 | — | 210 | ||||||||||
Unrealized depreciation on foreign currency exchange contracts | — | — | 1,044 | — | 652 | ||||||||||
Options written, at market value** | — | — | 362 | — | 457 | ||||||||||
Payable upon return of securities loaned | 105,067 | 87,192 | 30,431 | 111,278 | 41,109 | ||||||||||
Interest rate swap contracts, at market value**** | — | — | — | — | 1,827 | ||||||||||
Credit default swap contracts, at market value***** | — | — | — | — | 3,823 | ||||||||||
Total liabilities | 109,436 | 90,644 | 36,594 | 114,798 | 155,249 | ||||||||||
Net Assets | $ | 432,949 | $ | 202,911 | $ | 387,211 | $ | 469,041 | $ | 372,384 | |||||
See accompanying notes which are an integral part of the financial statements.
74 | Statements of Assets and Liabilities |
Table of Contents
Russell Investment Funds
Statements of Assets and Liabilities, continued — June 30, 2008 (Unaudited)
Amount in thousands | Multi-Style Equity Fund | Aggressive Equity Fund | Non-U.S. Fund | Real Estate Securities Fund | Core Bond Fund | |||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Undistributed (overdistributed) net investment income | $ | 1,520 | $ | 264 | $ | 4,439 | $ | 2,169 | $ | 4,063 | ||||||||||
Accumulated net realized gain (loss) | (18,789 | ) | (18,311 | ) | (10,908 | ) | (17,428 | ) | 2,527 | |||||||||||
Unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | 4,417 | 2,599 | 2,774 | 56,035 | (12,208 | ) | ||||||||||||||
Futures contracts | (1,116 | ) | (318 | ) | (1,836 | ) | — | 306 | ||||||||||||
Options written | — | — | (5 | ) | — | 469 | ||||||||||||||
Credit default swap contracts | — | — | — | — | (1,915 | ) | ||||||||||||||
Index swap contracts | — | — | 210 | — | — | |||||||||||||||
Interest rate swap contracts | — | — | — | — | 77 | |||||||||||||||
Foreign currency-related transactions | — | — | 576 | 1 | (457 | ) | ||||||||||||||
Shares of beneficial interest | 318 | 174 | 334 | 320 | 371 | |||||||||||||||
Additional paid-in capital | 446,599 | 218,503 | 391,627 | 427,944 | 379,151 | |||||||||||||||
Net Assets | $ | 432,949 | $ | 202,911 | $ | 387,211 | $ | 469,041 | $ | 372,384 | ||||||||||
Net Asset Value, offering and redemption price per share: | ||||||||||||||||||||
Net asset value per share****** | $ | 13.64 | $ | 11.63 | $ | 11.59 | $ | 14.65 | $ | 10.03 | ||||||||||
Net assets | $ | 432,949,489 | $ | 202,911,069 | $ | 387,211,082 | $ | 469,041,032 | $ | 372,383,926 | ||||||||||
Shares outstanding ($.01 par value) | 31,750,258 | 17,446,184 | 33,397,215 | 32,010,026 | 37,136,226 | |||||||||||||||
Amounts in thousands | ||||||||||||||||||||
* Foreign currency holdings - cost | $ | — | $ | — | $ | 3,219 | $ | 100 | $ | 460 | ||||||||||
** Premiums received on options written | $ | — | $ | — | $ | 357 | $ | — | $ | 926 | ||||||||||
*** Securities on loan included in investments | $ | 109,599 | $ | 84,810 | $ | 29,948 | $ | 116,885 | $ | 40,249 | ||||||||||
**** Interest rate swap contracts - premiums paid (received) | $ | — | $ | — | $ | — | $ | — | $ | 248 | ||||||||||
***** Credit default swap contracts - premiums paid (received) | $ | — | $ | — | $ | — | $ | — | $ | (1,858 | ) | |||||||||
****** Net asset value per share equals net assets divided by shares of beneficial interest outstanding. |
|
See accompanying notes which are an integral part of the financial statements.
Statements of Assets and Liabilities | 75 |
Table of Contents
Statements of Operations — For the Period Ended June 30, 2008 (Unaudited)
Amounts in thousands | Multi-Style Equity Fund | Aggressive Equity Fund | Non-U.S. Fund | Real Estate Securities Fund | Core Bond Fund | |||||||||||||||
Investment Income | ||||||||||||||||||||
Dividends | $ | 4,177 | $ | 1,189 | $ | 7,842 | $ | 6,383 | $ | 62 | ||||||||||
Dividends from affiliated money market funds | 403 | 139 | 530 | 262 | 375 | |||||||||||||||
Interest | 11 | 8 | 17 | — | 9,344 | |||||||||||||||
Securities lending income | 432 | 361 | 428 | 442 | 107 | |||||||||||||||
Less foreign taxes withheld | — | — | (851 | ) | — | — | ||||||||||||||
Total investment income | 5,023 | 1,697 | 7,966 | 7,087 | 9,888 | |||||||||||||||
Expenses | ||||||||||||||||||||
Advisory fees | 1,629 | 925 | 1,796 | 1,952 | 990 | |||||||||||||||
Administrative fees | 112 | 51 | 100 | 122 | 90 | |||||||||||||||
Custodian fees | 143 | 152 | 344 | 102 | 229 | |||||||||||||||
Transfer agent fees | 10 | 4 | 9 | 11 | 8 | |||||||||||||||
Professional fees | 46 | 32 | 50 | 44 | 37 | |||||||||||||||
Trustees’ fees | 4 | 2 | 4 | 5 | 4 | |||||||||||||||
Printing fees | 5 | 3 | 4 | 5 | 2 | |||||||||||||||
Miscellaneous | 13 | 7 | 7 | 12 | 10 | |||||||||||||||
Expenses before reductions | 1,962 | 1,176 | 2,314 | 2,253 | 1,370 | |||||||||||||||
Expense reductions | (20 | ) | (97 | ) | (19 | ) | — | (110 | ) | |||||||||||
Net expenses | 1,942 | 1,079 | 2,295 | 2,253 | 1,260 | |||||||||||||||
Net investment income (loss) | 3,081 | 618 | 5,671 | 4,834 | 8,628 | |||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | (13,243 | ) | (16,078 | ) | (6,384 | ) | (9,260 | ) | 2,404 | |||||||||||
Futures contracts | (1,587 | ) | (199 | ) | (5,009 | ) | — | 2,851 | ||||||||||||
Options written | — | — | 482 | — | (1,147 | ) | ||||||||||||||
Credit default swap contracts | — | — | — | — | (250 | ) | ||||||||||||||
Index swap contracts | — | — | 235 | — | (283 | ) | ||||||||||||||
Interest rate swap contracts | — | — | — | — | 1,172 | |||||||||||||||
Foreign currency-related transactions | — | — | 1,106 | (23 | ) | 418 | ||||||||||||||
Net realized gain (loss) | (14,830 | ) | (16,277 | ) | (9,570 | ) | (9,283 | ) | 5,165 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | (42,733 | ) | (7,748 | ) | (44,458 | ) | (12,357 | ) | (14,158 | ) | ||||||||||
Futures contracts | (818 | ) | (288 | ) | (1,461 | ) | — | (2,287 | ) | |||||||||||
Options written | — | — | (3 | ) | — | 1,201 | ||||||||||||||
Credit default swap contracts | — | — | — | — | (1,192 | ) | ||||||||||||||
Index swap contracts | — | — | 215 | — | (51 | ) | ||||||||||||||
Interest rate swap contracts | — | — | — | — | (545 | ) | ||||||||||||||
Foreign currency-related transactions | — | — | 278 | (1 | ) | (667 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) | (43,551 | ) | (8,036 | ) | (45,429 | ) | (12,358 | ) | (17,699 | ) | ||||||||||
Net realized and unrealized gain (loss) | (58,381 | ) | (24,313 | ) | (54,999 | ) | (21,641 | ) | (12,534 | ) | ||||||||||
Net Increase (Decrease) in Net Assets from Operations | $ | (55,300 | ) | $ | (23,695 | ) | $ | (49,328 | ) | $ | (16,807 | ) | $ | (3,906 | ) | |||||
See accompanying notes which are an integral part of the financial statements.
76 | Statements of Operations |
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Table of Contents
Statements of Changes in Net Assets
Multi-Style Equity Fund | Aggressive Equity Fund | |||||||||||||||
Amounts in thousands | Period Ended June 30, 2008 (Unaudited) | Year Ended December 31, 2007 | Period Ended June 30, 2008 (Unaudited) | Year Ended December 31, 2007 | ||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 3,081 | $ | 4,740 | $ | 618 | $ | 925 | ||||||||
Net realized gain (loss) | (14,830 | ) | 42,430 | (16,277 | ) | 19,170 | ||||||||||
Net change in unrealized appreciation (depreciation) | (43,551 | ) | (3,082 | ) | (8,036 | ) | (12,030 | ) | ||||||||
Net increase (decrease) in net assets from operations | (55,300 | ) | 44,088 | (23,695 | ) | 8,065 | ||||||||||
Distributions | ||||||||||||||||
From net investment income | (2,984 | ) | (4,459 | ) | (354 | ) | (866 | ) | ||||||||
From net realized gain | (3,972 | ) | (19,120 | ) | (44 | ) | (29,590 | ) | ||||||||
Net decrease in net assets from distributions | (6,956 | ) | (23,579 | ) | (398 | ) | (30,456 | ) | ||||||||
Share Transactions | ||||||||||||||||
Net increase (decrease) in net assets from share transactions | 15,283 | 41,906 | (1,923 | ) | 27,672 | |||||||||||
Total Net Increase (Decrease) in Net Assets | (46,973 | ) | 62,415 | (26,016 | ) | 5,281 | ||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 479,922 | 417,507 | 228,927 | 223,646 | ||||||||||||
End of period | $ | 432,949 | $ | 479,922 | $ | 202,911 | $ | 228,927 | ||||||||
Undistributed (overdistributed) net investment income included in net assets | $ | 1,520 | $ | 1,423 | $ | 264 | $ | — |
See accompanying notes which are an integral part of the financial statements.
78 | Statements of Changes in Net Assets |
Table of Contents
Non-U.S. Fund | Real Estate Securities Fund | Core Bond Fund | ||||||||||||||||||||
Period Ended June 30, 2008 (Unaudited) | Year Ended December 31, 2007 | Period Ended June 30, 2008 (Unaudited) | Year Ended December 31, 2007 | Period Ended June 30, 2008 (Unaudited) | Year Ended December 31, 2007 | |||||||||||||||||
$ | 5,671 | $ | 6,991 | $ | 4,834 | $ | 10,443 | $ | 8,628 | $ | 15,000 | |||||||||||
(9,570 | ) | 47,882 | (9,283 | ) | 51,349 | 5,165 | 3,830 | |||||||||||||||
(45,429 | ) | (16,201 | ) | (12,358 | ) | (159,351 | ) | (17,699 | ) | 3,043 | ||||||||||||
(49,328 | ) | 38,672 | (16,807 | ) | (97,559 | ) | (3,906 | ) | 21,873 | |||||||||||||
— | (10,855 | ) | (2,603 | ) | (13,544 | ) | (4,579 | ) | (16,240 | ) | ||||||||||||
(3,345 | ) | (75,619 | ) | — | (65,161 | ) | (2,030 | ) | — | |||||||||||||
(3,345 | ) | (86,474 | ) | (2,603 | ) | (78,705 | ) | (6,609 | ) | (16,240 | ) | |||||||||||
8,198 | 109,604 | (358 | ) | 39,596 | 36,832 | 74,651 | ||||||||||||||||
(44,475 | ) | 61,802 | (19,768 | ) | (136,668 | ) | 26,317 | 80,284 | ||||||||||||||
431,686 | 369,884 | 488,809 | 625,477 | 346,067 | 265,783 | |||||||||||||||||
$ | 387,211 | $ | 431,686 | $ | 469,041 | $ | 488,809 | $ | 372,384 | $ | 346,067 | |||||||||||
$ | 4,439 | $ | (1,232 | ) | $ | 2,169 | $ | (62 | ) | $ | 4,063 | $ | 14 |
See accompanying notes which are an integral part of the financial statements.
Statements of Changes in Net Assets | 79 |
Table of Contents
Financial Highlights — For the Periods Ended
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 Income (Loss) from Operations | $ Distributions from Net Investment Income | $ Distributions from Net Realized Gain | $ Return of Capital | |||||||||||||
Multi-Style Equity Fund | |||||||||||||||||||
June 30, 2008* | 15.65 | .10 | (1.88 | ) | (1.78 | ) | (.10 | ) | (.13 | ) | — | ||||||||
December 31, 2007 | 14.93 | .16 | 1.37 | 1.53 | (.16 | ) | (.65 | ) | — | ||||||||||
December 31, 2006 | 13.37 | .14 | 1.55 | 1.69 | (.13 | ) | — | — | |||||||||||
December 31, 2005 | 12.60 | .12 | .79 | .91 | (.14 | ) | — | — | |||||||||||
December 31, 2004 | 11.56 | .11 | 1.02 | 1.13 | (.09 | ) | — | — | |||||||||||
December 31, 2003 | 9.04 | .08 | 2.51 | 2.59 | (.07 | ) | — | — | |||||||||||
Aggressive Equity Fund | |||||||||||||||||||
June 30, 2008* | 12.99 | .04 | (1.38 | ) | (1.34 | ) | (.02 | ) | — | (e) | — | ||||||||
December 31, 2007 | 14.45 | .06 | .40 | .46 | (.05 | ) | (1.87 | ) | — | ||||||||||
December 31, 2006 | 14.40 | .03 | 2.10 | 2.13 | (.03 | ) | (2.05 | ) | — | ||||||||||
December 31, 2005 | 14.90 | .03 | .90 | .93 | (.03 | ) | (1.40 | ) | — | ||||||||||
December 31, 2004 | 13.47 | .02 | 1.95 | 1.97 | (.02 | ) | (.52 | ) | — | ||||||||||
December 31, 2003 | 9.26 | .01 | 4.21 | 4.22 | (.01 | ) | — | — | |||||||||||
Non-U.S. Fund | |||||||||||||||||||
June 30, 2008* | 13.20 | .17 | (1.68 | ) | (1.51 | ) | — | (.10 | ) | — | |||||||||
December 31, 2007 | 15.01 | .25 | 1.14 | 1.39 | (.38 | ) | (2.82 | ) | — | ||||||||||
December 31, 2006 | 12.68 | .23 | 2.75 | 2.98 | (.35 | ) | (.30 | ) | — | ||||||||||
December 31, 2005 | 11.33 | .16 | 1.38 | 1.54 | (.19 | ) | — | — | |||||||||||
December 31, 2004 | 9.76 | .11 | 1.66 | 1.77 | (.20 | ) | — | — | |||||||||||
December 31, 2003 | 7.20 | .09 | 2.69 | 2.78 | (.22 | ) | — | — | |||||||||||
Real Estate Securities Fund | |||||||||||||||||||
June 30, 2008* | 15.22 | .15 | (.64 | ) | (.49 | ) | (.08 | ) | — | — | |||||||||
December 31, 2007 | 21.34 | .35 | (3.68 | ) | (3.33 | ) | (.47 | ) | (2.32 | ) | — | ||||||||
December 31, 2006 | 17.28 | .37 | 5.72 | 6.09 | (.39 | ) | (1.64 | ) | — | ||||||||||
December 31, 2005 | 17.09 | .32 | 1.82 | 2.14 | (.37 | ) | (1.58 | ) | — | ||||||||||
December 31, 2004 | 13.71 | .36 | 4.33 | 4.69 | (.36 | ) | (.95 | ) | — | ||||||||||
December 31, 2003 | 10.51 | .55 | 3.28 | 3.83 | (.61 | ) | — | (.02 | ) | ||||||||||
Core Bond Fund | |||||||||||||||||||
June 30, 2008* | 10.32 | .24 | (.34 | ) | (.10 | ) | (.13 | ) | (.06 | ) | — | ||||||||
December 31, 2007 | 10.14 | .51 | .20 | .71 | (.53 | ) | — | — | |||||||||||
December 31, 2006 | 10.23 | .45 | (.08 | ) | .37 | (.46 | ) | — | — | ||||||||||
December 31, 2005 | 10.50 | .38 | (.17 | ) | .21 | (.37 | ) | (.11 | ) | — | |||||||||
December 31, 2004 | 10.47 | .24 | .24 | .48 | (.26 | ) | (.19 | ) | — | ||||||||||
December 31, 2003 | 10.43 | .31 | .31 | .62 | (.38 | ) | (.20 | ) | — |
See accompanying notes which are an integral part of the financial statements.
80 | Financial Highlights |
Table of Contents
$ Total Distributions | $ Net Asset Value, End of Period | % Total Return(b) | $ Net Assets, End of Period (000) | % Ratio of Expenses to Average Net Assets, Net(c)(d) | % Ratio of Expenses to Average Net Assets, Gross(c) | % Ratio of Net Investment Income to Average Net Assets(c)(d) | % Portfolio Turnover Rate(b) | |||||||||
(.23 | ) | 13.64 | (11.45 | ) | 432,949 | .87 | .88 | 1.38 | 63 | |||||||
(.81 | ) | 15.65 | 10.36 | 479,922 | .87 | .87 | 1.04 | 136 | ||||||||
(.13 | ) | 14.93 | 12.75 | 417,507 | .87 | .87 | 1.03 | 128 | ||||||||
(.14 | ) | 13.37 | 7.27 | 349,659 | .83 | .87 | .94 | 130 | ||||||||
(.09 | ) | 12.60 | 9.81 | 332,759 | .87 | .88 | .96 | 123 | ||||||||
(.07 | ) | 11.56 | 28.86 | 296,767 | .87 | .95 | .82 | 108 | ||||||||
(.02 | ) | 11.63 | (10.29 | ) | 202,911 | 1.05 | 1.14 | .60 | 85 | |||||||
(1.92 | ) | 12.99 | 3.42 | 228,927 | 1.05 | 1.13 | .39 | 180 | ||||||||
(2.08 | ) | 14.45 | 14.79 | 223,646 | 1.05 | 1.12 | .16 | 184 | ||||||||
(1.43 | ) | 14.40 | 6.36 | 204,292 | .99 | 1.13 | .21 | 130 | ||||||||
(.54 | ) | 14.90 | 14.73 | 195,583 | 1.05 | 1.17 | .17 | 150 | ||||||||
(.01 | ) | 13.47 | 45.60 | 166,385 | 1.06 | 1.26 | .10 | 139 | ||||||||
(.10 | ) | 11.59 | (11.36 | ) | 387,211 | 1.15 | 1.16 | 2.85 | 51 | |||||||
(3.20 | ) | 13.20 | 10.12 | 431,686 | 1.15 | 1.18 | 1.70 | 106 | ||||||||
(.65 | ) | 15.01 | 23.64 | 369,884 | 1.15 | 1.21 | 1.64 | 111 | ||||||||
(.19 | ) | 12.68 | 13.69 | 302,261 | 1.12 | 1.26 | 1.41 | 88 | ||||||||
(.20 | ) | 11.33 | 18.30 | 258,766 | 1.15 | 1.28 | 1.11 | 73 | ||||||||
(.22 | ) | 9.76 | 38.78 | 206,619 | 1.16 | 1.41 | 1.14 | 50 | ||||||||
(.08 | ) | 14.65 | (3.26 | ) | 469,041 | .92 | .92 | 1.99 | 27 | |||||||
(2.79 | ) | 15.22 | (15.86 | ) | 488,809 | .92 | .92 | 1.75 | 77 | |||||||
(2.03 | ) | 21.34 | 35.84 | 625,477 | .90 | .91 | 1.86 | 53 | ||||||||
(1.95 | ) | 17.28 | 12.96 | 443,092 | .91 | .91 | 1.86 | 64 | ||||||||
(1.31 | ) | 17.09 | 34.88 | 379,733 | .92 | .92 | 2.43 | 47 | ||||||||
(.63 | ) | 13.71 | 37.21 | 254,691 | .95 | .95 | 4.66 | 39 | ||||||||
(.19 | ) | 10.03 | (.99 | ) | 372,384 | .70 | .76 | 4.78 | 87 | |||||||
(.53 | ) | 10.32 | 7.24 | 346,067 | .70 | .78 | 5.04 | 965 | ||||||||
(.46 | ) | 10.14 | 3.72 | 265,783 | .70 | .73 | 4.40 | 453 | ||||||||
(.48 | ) | 10.23 | 2.01 | 216,774 | .70 | .72 | 3.70 | 193 | ||||||||
(.45 | ) | 10.50 | 4.66 | 175,851 | .70 | .73 | 2.41 | 216 | ||||||||
(.58 | ) | 10.47 | 6.15 | 147,202 | .71 | .78 | 2.86 | 233 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights | 81 |
Table of Contents
Notes to Financial Highlights — June 30, 2008 (Unaudited)
* | For the period ended June 30, 2008 (Unaudited). |
(a) | Average month-end shares outstanding were used for this calculation. |
(b) | Periods less than one year are not annualized. |
(c) | The ratios for periods less than one year are annualized. |
(d) | May reflect amounts waived and/or reimbursed by RIMCo. |
(e) | Less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
82 | Notes to Financial Highlights |
Table of Contents
Notes to Financial Statements — June 30, 2008 (Unaudited)
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 to qualified insurance company separate accounts offering variable insurance products. The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under a master trust agreement dated July 11, 1996, as amended. The Investment Company’s master trust agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest.
RIMCo is the Funds’ adviser and Russell Fund Services Company (“RFSC”), a wholly-owned subsidiary of RIMCo, is the Funds’ administrator and transfer agent.
2. | Significant Accounting Policies |
The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“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 following is a summary of the significant accounting policies consistently followed by each Fund in the preparation of its financial statements.
Security Valuation
The Funds value portfolio securities according to Board-approved securities valuation procedures, including market value procedures, fair value procedures and pricing services. Debt obligation securities maturing within 60 days of the time of purchase are priced using the amortized cost method of valuation, unless the Board determines that amortized cost does not represent market value of short-term debt obligations. The Board has delegated the responsibility for administration of the Securities Valuation Procedures to RFSC.
Ordinarily, the Funds value each portfolio security based on market quotations provided by pricing services or alternative pricing services or dealers (when permitted by the market value procedures). Generally, Fund securities are valued at the close of the market on which they are traded as follows:
• | US listed equities; equity and fixed income options: Last sale price; last bid price if no last sale price; |
• | US over-the-counter equities: Official closing price; last bid price if no closing price; |
• | Listed ADRs/GDRs: Last sale price; last bid price if no last sale price; |
• | Municipal bonds, US bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price; |
• | Futures: Settlement price; |
• | Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier; |
• | The value of swap agreements is equal to the Funds’ obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. |
• | Equity securities traded on a national foreign securities exchange or a foreign over the counter market are valued on the basis of the official closing price, or lacking the official closing price, at the last sale price of the primary exchange on which the security is traded. |
If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Funds will use the security’s fair value, as determined in accordance with the fair value procedures. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Funds’ Board of Trustees believes reflects fair value. The use of fair value pricing by a Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Fund shares and the daily movement of the benchmark index if the index is valued using another pricing method.
Notes to Financial Statements | 83 |
Table of Contents
Russell Investment Funds
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
This policy is intended to assure that the Funds’ net asset values fairly reflect security values as of the time of pricing. 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 net asset value of Fund shares is determined may be reflected in the calculation of net asset values for each applicable Fund when the Funds deem that the particular event or circumstance would materially affect such Fund’s net asset value. 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 are likely to use fair value pricing more often since significant events may occur between the close of foreign markets and the time of pricing which would trigger fair value pricing of the foreign securities. Funds that invest in low rated debt securities are also likely to use fair value pricing more often since the markets in which such securities are traded are generally thinner, more limited and less active than those for higher rated securities. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the US securities market (defined in the fair value procedures as the movement by any two of four major US Indexes greater than a certain percentage) or other significant event; foreign market holidays if on a daily basis, Fund exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict.
Because foreign securities can trade on non-business days, the net asset value 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.
The Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), effective January 1, 2008. In accordance with SFAS 157, fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. SFAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
• | Level 1 — quoted prices in active markets for identical investments |
• | Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
Inputs used in valuing the Funds’ investments carried at value for the period ended June 30, 2008 were as follows:
Multi-Style Equity Fund | Aggressive Equity Fund | Non-U.S. Fund | Real Estate Securities Fund | Core Bond Fund | |||||||||||||||||||||||||||||||
Investments in Securities | Other Financial Instruments* | Investments in Securities | Other Financial Instruments* | Investments in Securities | Other Financial Instruments* | Investments in Securities | Other Financial Instruments* | Investments in Securities | Other Financial Instruments* | ||||||||||||||||||||||||||
Level 1 | $ | 534,982,044 | $ | (1,115,656 | ) | $ | 288,192,168 | $ | (318,474 | ) | $ | 408,016,121 | $ | (1,840,116 | ) | $ | 579,744,860 | $ | (254 | ) | $ | 75,378,949 | $ | 306,656 | |||||||||||
Level 2 | 1,592,396 | — | 995,248 | — | 2,189,545 | 552,227 | — | — | 387,412,687 | (2,286,893 | ) | ||||||||||||||||||||||||
Level 3 | — | — | 189 | — | 106,966 | — | — | — | — | (4,155 | ) | ||||||||||||||||||||||||
$ | 536,574,440 | $ | (1,115,656 | ) | $ | 289,187,605 | $ | (318,474 | ) | $ | 410,312,632 | $ | (1,287,889 | ) | $ | 579,744,860 | $ | (254 | ) | $ | 462,791,636 | $ | (1,984,392 | ) | |||||||||||
* | Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instruments. |
84 | Notes to Financial Statements |
Table of Contents
Russell Investment Funds
Notes to Financial Statements, continued — June 30, 2008 (Unaudited)
A reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining a value for the period ending June 30, 2008 were as follows:
Multi-Style Equity Fund | Aggressive Equity Fund | Non-U.S. Fund | Core Bond Fund | |||||||||||||
Balance as of 12/31/07 | $ | 429 | $ | 471,019 | $ | 448,785 | $ | 3,137,866 | ||||||||
Accrued discounts/(premiums) | — | — | — | 840 | ||||||||||||
Realized gain/(loss) and change in unrealized appreciation/(depreciation) | (429 | ) | (946 | ) | 5,265 | (324,778 | ) | |||||||||
Net purchases (sales) | — | — | 1,233,646 | (180,557 | ) | |||||||||||
Net transfers in and/or out of Level 3 | — | (469,884 | ) | (1,580,730 | ) | (2,637,526 | ) | |||||||||
Balance as of 06/30/08 | $ | — | $ | 189 | $ | 106,966 | $ | (4,155 | ) | |||||||
Net change in unrealized appreciation (depreciation) from investments still held as of 06/30/08 | $ | — | $ | — | $ | — | $ | — |
In March 2008, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds’ derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds’ financial statements disclosures.
Investment Transactions
Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost incurred by each money manager 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 thereafter as the Funds are informed of the ex-dividend date. Interest income is recorded daily on the accrual basis. The Core Bond Fund classifies gains and losses realized on prepayments received on mortgage-backed securities as part of interest income. All premiums and discounts, including original issue discounts, are amortized/accreted using the interest method.
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.
It is each Fund’s intention to qualify as a regulated investment company and distribute all of its taxable income and capital gains. Therefore, no federal income tax provision is required for the Funds.
The FASB issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109” (“FIN 48”), in June 2006. FIN 48 permits the recognition of tax benefits of an uncertain tax position only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Funds adopted the provisions of FIN 48 on January 1, 2007. Management has reviewed the Funds tax positions for all open tax years, and concluded that adoption had no effect on the Funds financial position or results of operations. At June 30, 2008, the Funds have 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.
The Funds file U.S. tax returns. While the statute of limitations remain open to examine the Funds U.S. tax returns filed for the fiscal years ending December 31, 2004 through December 31, 2006, 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.
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Dividends and Distributions to Shareholders
For all Funds, income and capital gain distributions, if any, are recorded on the ex-dividend date. Income distributions are generally declared and paid quarterly, except for the Non-U.S. Fund, which generally declares and pays income distributions annually. 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 GAAP. As a result, net investment income and net realized gain (or loss) on investment and foreign currency-related transactions for a reporting period may differ significantly from distributions during such period. The differences between tax regulations and 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 and capital loss carryforwards.
Expenses
The Funds will pay their own expenses other than those expressly assumed by RIMCo or its affiliates. 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 US dollars. Foreign currency amounts and transactions of the Funds are translated into US dollars on the following basis:
(a) | Market 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 Non-U.S. Fund’s books and the US 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, at year-end, as a result of changes in the exchange rates.
The Funds do not isolate that portion of the results of operations of the Funds that arises as a result of changes in exchange rates from that portion that arises from changes in market prices of investments during the year. Such fluctuations are included with the net realized and unrealized gain or loss from investments. However, for federal income tax purposes the Funds do isolate the effects of changes in foreign exchange rates from the fluctuations arising from changes in market prices for realized gain (or loss) on debt obligations.
Capital Gains Taxes
The Non-U.S. Fund may be subject to capital gains taxes and repatriation taxes imposed by certain countries in which it invests. The Non-U.S. Fund may record a deferred tax liability in respect of unrealized appreciation on foreign securities for potential capital gains and repatriation taxes at June 30, 2008. The accrual for capital gains and repatriation taxes is included in net unrealized appreciation (depreciation) on investments in the Statement of Assets and Liabilities for both Funds, if applicable. The amounts related to capital gains taxes are included in net realized gain (loss) on investments in the Statement of Operations for both Funds. The Non-U.S. Fund had no deferred tax liability or capital gains taxes for the period ended June 30, 2008.
Derivatives
To the extent permitted by the investment objectives, restrictions and policies set forth in the Funds’ Prospectus and Statement of Additional Information, the Funds may participate in various derivative-based transactions. Derivative securities are instruments or agreements whose value is derived from an underlying security or index. They include options, futures, swaps, swaptions, forwards, structured notes and stripped securities. These instruments offer unique characteristics and risks that assist the Funds in meeting their investment strategies.
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The Funds typically use derivatives in three ways: exposing cash reserves to markets, hedging and return enhancement. The Funds, other than the Real Estate Securities Fund, may pursue their strategy to be fully invested by exposing cash reserves in a Fund to the performance of appropriate markets by purchasing securities and/or derivatives. This is intended to cause the Funds to perform as though their cash reserves were actually invested in those markets. Hedging is also used by some 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. By purchasing certain instruments, 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 are generally categorized as market risk, liquidity risk and counterparty or credit risk.
Foreign Currency Exchange Contracts
In connection with investment transactions consistent with the Funds’ investment objective and strategies, certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“contracts”). The Funds may enter into foreign currency forward overlays on liquidity reserve balances. Additionally, from time to time the Funds may enter into contracts to hedge certain foreign currency-denominated assets. Contracts are recorded at market value. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and are generally limited to the amount of unrealized gain on the contracts, if any, that are recognized in the Statement of Assets and Liabilities. Realized gains or losses arising from such transactions are included in net realized gain (or loss) from foreign currency-related transactions. Open contracts at June 30, 2008 are presented on the Schedule of Investments.
Forward Commitments
Certain Funds may contract to purchase securities for a fixed price at a future date beyond customary settlement time consistent with a Fund’s ability to manage its investment portfolio and meet redemption requests. 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 Funds may dispose of a forward commitment transaction prior to settlement if it is appropriate to do so and realize short-term gains (or losses) upon such sale. When effecting such transactions, cash or liquid high-grade debt obligations of the Fund in a dollar amount sufficient to make payment for the portfolio securities to be purchased will be segregated on the Fund’s records at the trade date and maintained 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.
Loan Agreements
The Core 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. A 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 “lender”) 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, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. For the period ended June 30, 2008, there were no unfunded loan commitments in the Core Bond Fund.
Options
The Funds may purchase and sell (write) call and put options on securities and securities indices, provided such options are traded on a national securities exchange or in an over-the-counter market. The Funds may also purchase and sell call and put options on foreign currencies. The Funds may utilize options to equitize liquidity reserve balances.
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 market 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 stock value 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 security.
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Whether an option which the Fund has written either 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. Realized gains (losses) on purchased options are included in net realized gain (loss) from investments.
The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement 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.
Futures Contracts
The Funds may invest in futures contracts (i.e., interest rate, foreign currency and index futures contracts) to a limited extent. The face or contract amounts 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 market value of the securities held by the Fund 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% of the purchase price indicated in the futures contract. Payments to and from the broker, known as variation margin, are made 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. As of June 30, 2008, included in the Statement of Assets and Liabilities, the Non-U.S. Fund had a cash collateral balance of $2,913,441 in connection with futures contracts purchased (sold).
Swap Agreements
The Funds may enter into several different types of agreements including interest rate, index, credit default and currency swaps.
The Funds may enter into index swap agreements as an additional hedging strategy for cash reserves held by those Funds or to effect investment transactions consistent with these Funds’ investment objectives and strategies. 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 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).
Amounts paid to and received from the swap counterparties representing capital appreciation and depreciation on the underlying securities and accrued interest expense and interest income are recorded as net realized gain (loss). The Funds are exposed to credit risk in the event of non-performance by the swap counterparties; however, the Funds do not anticipate non-performance by the counterparties.
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 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, as the case may be, only the net amount of the two payments. When the Funds engage in a swap, they exchange their 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).
Interest rate swaps are counterparty agreements and can be customized to meet each party’s needs and involves the exchange of a fixed payment per period for a payment that is not fixed. Currency swaps are agreements where two parties exchange specified amounts of different currencies which are followed by a series of interest payments that are exchanged based on the principal cash flow. At maturity the principal amounts are exchanged back to the original party. Credit default swaps are counterparty agreements which allow the transfer of third party credit risk (the possibility that an issuer will default on their 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.
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The Funds expect to enter into these transactions primarily to preserve a return or spread on a particular investment or portion of its portfolio or to protect against any increase in the price of securities they anticipate purchasing at a later date. The net amount of the excess, if any, of the Funds’ obligations over its entitlements with respect to each swap will be accrued on a daily basis and an amount of cash or liquid high-grade debt securities having an aggregate net asset value at least equal to the accrued excess will be maintained in a segregated account by the Funds’ custodian. 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. The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid. As of June 30, 2008, included in the Statement of Assets and Liabilities, the Core Bond Fund had a cash collateral balance of $1,386,578 in connection with swaps contracts purchased (sold).
Investments in Emerging Markets
Investing in emerging markets may involve special risks and considerations not typically associated with investing in the United States markets. These risks include revaluation of currencies, high rates of inflation, repatriation, restrictions on income and capital, and future adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, delayed settlements, and their prices may be more volatile than those of comparable securities in the United States.
Mortgage-Related and Other Asset-Backed Securities
The Core Bond Fund may invest in mortgage or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities (“SMBSs”) and other securities that directly or indirectly represent a participation in, or are secured by a payable from, mortgage loans on real property. Mortgage-backed securities 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 the Fund receives the payments for reinvestment. Mortgage-backed securities may have less potential for capital appreciation than comparable fixed income securities due to the likelihood of increased prepayments of mortgages as interest rates decline. If a Fund buys mortgage-backed securities at a premium, mortgage foreclosures and prepayments of principal by mortgagors (which may be made at any time without penalty) may result in some loss of the Fund’s principal investment to the extent of the premium paid. The value of mortgage-backed securities may also change due to shifts in the market’s perception of issuers. In addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole. Non-governmental mortgage-backed securities may offer higher yields than those issued by government entities, but also may be subject to greater price changes than governmental issues.
Through its investments in mortgage-backed securities (“MBS”), including those that are issued by private issuers, a Fund may have some exposure to subprime loans as well as to the mortgage and credit markets generally. Private issuers include 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.
Unlike MBS issued or guaranteed by the U.S. government or one of its sponsored entities, 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 of the securities and pay any servicing or other fees). However, there can be no guarantee that credit enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgage loans. In addition, MBS that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable to those MBS that have a
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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. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. For these reasons, the loans underlying these securities 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 loans, but a level of risk exists for all 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 may include pools of MBS loans, receivables or other assets. Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities. For purposes of determining the percentage of a Fund’s total assets invested in securities of issuers having their principal business activities in a particular industry, asset-backed securities will be classified separately, based on the nature of the underlying assets, according to the following categories: captive auto, diversified, retail and consumer loans, captive equipment and business, business trade receivables, nuclear fuel and capital and mortgage lending. Asset-backed securities (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. Asset-backed securities 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 Funds 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 asset-backed securities 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.
Inflation-Indexed Bonds
The Core Bond Fund may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity.
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.
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3. | Investment Transactions |
Securities
During the period ended June 30, 2008, purchases and sales of investment securities (excluding US Government and Agency obligations, short-term investments, options, futures and repurchase agreements) were as follows:
Funds | Purchases | Sales | ||||
Multi-Style Equity | $ | 281,295,801 | $ | 277,423,761 | ||
Aggressive Equity | 176,688,537 | 179,166,013 | ||||
Non-U.S. | 209,227,581 | 204,550,126 | ||||
Real Estate Securities | 130,066,534 | 130,983,833 | ||||
Core Bond | 379,453,350 | 336,759,543 |
Purchases and sales of US Government and Agency obligations (excluding short-term investments, options, futures and repurchase agreements) were as follows:
Funds | Purchases | Sales | ||||
Core Bond | $ | 300,499,900 | $ | 280,985,539 |
Written Options Contracts
Transactions in written options contracts for the period ended June 30, 2008 were as follows:
Non-U.S. Fund | Core Bond Fund | |||||||||||||
Number of Contracts | Premiums Received | Number of Contracts | Premiums Received | |||||||||||
Outstanding December 31, 2007 | 22 | $ | 95,180 | 44 | $ | 322,282 | ||||||||
Opened | 493 | 2,344,805 | 253 | 1,138,479 | ||||||||||
Closed | (441 | ) | (2,082,946 | ) | (353 | ) | (387,136 | ) | ||||||
Expired | — | — | 121 | (147,363 | ) | |||||||||
Outstanding June 30, 2008 | 74 | $ | 357,039 | 65 | $ | 926,262 | ||||||||
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 Fund receives cash (US currency), US Government or US Government agency obligations as collateral against the loaned securities. To the extent that a loan is collateralized by cash, such collateral is invested by the securities lending agent, State Street Corporation (“State Street”), in short-term instruments, money market mutual funds and other short-term investments that meet certain quality and diversification requirements. Cash collateral invested in money market funds is included in the Schedule of Investments. The collateral received is recorded on a lending Fund’s statement of assets and liabilities along with the related obligation to return the collateral.
Income generated from the investment of cash collateral, less negotiated rebate fees paid to participating brokers and transaction costs, is divided between the Fund and State Street and is recorded as income for the Fund. 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 State Street 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 US securities) or 105% (for Non-U.S. securities) of the market value of the loaned securities at the inception of each loan. The market value of the loaned securities is determined at the close of business of the Funds 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. Consequently, loans are made only to borrowers which are deemed to be of good financial standing.
As of June 30, 2008, the non-cash collateral received for the securities on loan in the following funds was:
Funds | Non-Cash Collateral Value | Non-Cash Collateral Holding | |||
Multi-Style Equity | $ | 7,659,982 | Pool of US Government Securities | ||
Aggressive Equity | 359,352 | Pool of US Government Securities | |||
Non-U.S. | 673,353 | Pool of US Government Securities | |||
Real Estate Securities | 5,609,630 | Pool of US Government Securities |
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Custodian
The Funds have entered into a custody arrangement with their Custodian whereby custody credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ expenses. For the period ended June 30, 2008, the Funds’ custodian fees were reduced by the following amounts under these arrangements:
Funds | Custody Credit Amount | ||
Multi-Style Equity | $ | 566 | |
Aggressive Equity | 479 | ||
Non-U.S. | 1,463 | ||
Real Estate Securities | 313 | ||
Core Bond | 4,443 |
Brokerage Commissions
The Funds effect certain transactions through BNY ConvergeFX Group — LJR recapture Services (“LJR”) and its global network of correspondent brokers. LJR is a registered broker and is not an affiliate of the Funds or RIMCo. Trades placed through LJR and its correspondents are used to generate commission rebates to the Funds on whose behalf the trades were made. For purposes of trading to generate commission rebates to the Funds, the Funds’ money managers are requested to and RIMCo may, with respect to transactions it places, effect transactions with or through LJR and its correspondents or other brokers only to the extent that the Funds will receive competitive execution, price and commissions. In addition, RIMCo recommends targets for the amount of trading that money managers allocate through LJR based upon asset class, investment style and other factors.
Effective January 1, 2008, transactions effected through LJR are used solely to generate commission rebate to the Funds and no longer to obtain research services.
Additionally, the Fund paid brokerage commissions to non-affiliated brokers who provided brokerage and research services to the Adviser.
4. | Related Party Transactions, Fees and Expenses |
Adviser and Administrator
RIMCo is the Funds Advisor and RFSC is the Funds’ administrator. RFSC is a wholly-owned subsidiary of RIMCo. RIMCo is a wholly-owned subsidiary of Frank Russell Company (a subsidiary of The Northwestern Mutual Life Insurance Company). Frank Russell Company provides money manager research services to RIMCo.
The Funds are permitted to invest their cash reserves (i.e., cash awaiting investment or cash held to meet redemption requests or to pay expenses), and also may invest a portion of the collateral received from the Investment Company’s securities lending program in the Russell Investment Company (“RIC”) Money Market Fund. RIC is a registered investment company that employs the same investment adviser as the Investment Company. As of June 30, 2008, $96,576,000 of the RIC Money Market Fund’s net assets represents investments by the Funds.
The Funds pay an advisory fee to RIMCo and an administrative fee to RFSC.
The advisory and administrative fees are based upon the average daily net assets of each Fund at the rates specified in the table below, are payable monthly and total $7,292,450 and $474,769 respectively, for the period ended June 30, 2008.
Annual Rate | ||||||
Funds | Advisor | Administrator | ||||
Multi-Style Equity | 0.73 | % | 0.05 | % | ||
Aggressive Equity | 0.90 | 0.05 | ||||
Non-U.S. Equity | 0.90 | 0.05 | ||||
Real Estate Securities | 0.80 | 0.05 | ||||
Core Bond | 0.55 | 0.05 |
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RIMCo agreed to certain waivers of its advisory fees as follows:
Multi-Style Equity Fund — RIMCo contractually agreed to waive, at least until April 29, 2009, a portion of its 0.73% advisory fee, up to the full amount of that fee, equal to the amount by which the Fund’s total direct Fund-level operating expenses exceed 0.87% of the Fund’s average daily net assets on an annual basis and then to reimburse the Fund for all remaining expenses, after fee waivers, that exceed 0.87% of the average daily net assets on an annual basis. Direct Fund-level expenses do not include expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the period ended June 30, 2008 was $19,091. There were no reimbursements during the period.
Aggressive Equity Fund — RIMCo contractually agreed to waive, at least until April 29, 2009, a portion of its 0.90% advisory fee, up to the full amount of that fee, equal to the amount by which the Fund’s total direct Fund-level operating expenses exceed 1.05% of the Fund’s average daily net assets on an annual basis and to then reimburse the Fund for all remaining expenses, after fee waivers, that exceed 1.05% of the average daily net assets on an annual basis. Direct Fund-level expenses do not include expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the period ended June 30, 2008 was $96,646. There were no reimbursements during the period.
Non-U.S. Fund — RIMCo contractually agreed to waive, at least until April 29, 2009, a portion of its 0.90% advisory fee, up to the full amount of that fee, equal to amount by which the Fund’s total direct Fund-level operating expenses exceed 1.15% of the Fund’s average daily net assets on an annual basis and to then reimburse the Fund for all remaining expenses, after fee waivers, that exceed 1.15% of the average daily net assets on an annual basis. Direct Fund-level expenses do not include expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the period ended June 30, 2008 was $17,383. There were no reimbursements during the period.
Core Bond Fund — RIMCo contractually agreed to waive, at least until April 29, 2009, a portion of its 0.55% advisory fee, up to the full amount of that fee, equal to the amount by which the Fund’s total direct Fund-level operating expenses exceed 0.70% of the Fund’s average daily net assets on an annual basis and to then reimburse the Fund for all remaining expenses, after fee waivers, that exceed 0.70% of the average daily net assets on an annual basis. Direct Fund-level expenses do not include expenses of other investment companies in which the Fund invests which are borne indirectly by the Fund. The total amount of the waiver for the period ended June 30, 2008 was $105,137. There were no reimbursements during the period.
RIMCo and RFSC do not have the ability to recover amounts waived or reimbursed from previous periods.
Transfer and Dividend Disbursing Agent
RFSC is the Transfer and Dividend Disbursing Agent for the Investment Company. For this service, RFSC is paid a fee for transfer agency and dividend disbursing services provided to the Funds. RFSC retains a portion of this fee for its services provided to the Funds and pays the balance to unaffiliated agents who assisted in providing these services. Total transfer agency fees paid by the Funds for the period ended June 30, 2008 were $41,780.
Accrued Fees Payable to Affiliates
Accrued fees payable to affiliates as of June 30, 2008 were as follows:
Multi-Style Equity Fund | Aggressive Equity Fund | Non-U.S. Fund | Real Estate Securities Fund | Core Bond Fund | |||||||||||
Advisory fees | $ | 272,588 | $ | 156,666 | $ | 296,969 | $ | 328,501 | $ | 167,657 | |||||
Administrative fees | 18,670 | 8,703 | 16,498 | 20,531 | 15,241 | ||||||||||
Transfer agent fees | 3,214 | 1,484 | 2,848 | 3,558 | 2,606 | ||||||||||
Trustee fees | 1,651 | 876 | 1,455 | 2,491 | 1,018 | ||||||||||
$ | 296,123 | $ | 167,729 | $ | 317,770 | $ | 355,081 | $ | 186,522 | ||||||
Distributor
On June 2, 2008 Russell Fund Distributor, Inc., a wholly-owned subsidiary of RIMCo, changed its name to Russell Financial Services, Inc. (the “Distributor’).
Pursuant to the Distribution Agreement with the Investment Company, the Distributor serves as distributor for all Investment Company portfolio shares. The Distributor receives no compensation from the Investment Company for its services.
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Affiliated Brokerage Commissions
The Funds will effect certain transactions through Russell Implementation Services Inc. (“RIS”) and its global network of unaffiliated correspondent brokers. RIS is a registered broker and investment adviser and an affiliate of RIMCo. Trades placed through RIS and its correspondents are made (i) to manage trading associated with changes in managers, rebalancing across existing managers, cash flows and other portfolio transitions or (ii) to execute portfolio securities transactions for each Fund’s assets that RIMCo determines not to allocate to money managers and for each Fund’s cash reserves.
Board of Trustees
The Russell Fund Complex consists of RIC, which has 44 Funds, and RIF, which has nine Funds. Each of the Trustees is a Trustee of both RIC and RIF. During the period, the Russell Fund Complex paid each of its independent Trustees a retainer of $60,000 ($52,000 prior to January 1, 2008) per year, $6,500 for each regular quarterly meeting attended in person, $2,500 ($2,000 prior to January 1, 2008) for each special meeting attended in person, and $2,500 ($2,000 prior to January 1, 2008) for each Audit Committee meeting, Nominating and Governance Committee meeting, Investment Committee meeting or any other committee meeting established and approved by the Board that is attended in person. Each Trustee receives a $1,000 ($500 prior to January 1, 2008) fee for attending the quarterly and special meetings and a $500 fee for attending the committee meeting by phone instead of receiving the full fee had the member attended in person. Trustees’ out of pocket expenses are also paid by the Russell Fund Complex. The Audit Committee Chair and Investment Committee Chair are each paid a fee of $12,000 per year and the Nominating and Governance Committee Chair is paid a fee of $6,000 per year. The chairman of the Board receives additional annual compensation of $52,000.
5. | Federal Income Taxes |
The Funds may have net tax basis capital loss carryforwards which may be applied against any realized net taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first. At December 31, 2007, the Funds had no capital loss carryforwards.
At June 30, 2008, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
Multi-Style Equity Fund | Aggressive Equity Fund | Non-U.S. Fund | Core Bond Fund | Real Estate Securities Fund | ||||||||||||||||
Cost of Investments | $ | 539,156,231 | $ | 289,417,197 | $ | 411,952,197 | $ | 475,059,084 | $ | 536,443,972 | ||||||||||
Unrealized Appreciation | $ | 23,564,586 | $ | 1,720,639 | $ | 20,818,048 | $ | 6,287,813 | $ | 70,584,990 | ||||||||||
Unrealized Depreciation | (26,146,377 | ) | (1,950,231 | ) | (22,457,613 | ) | (18,555,261 | ) | (27,284,101 | ) | ||||||||||
Unrealized Appreciation | $ | (2,581,791 | ) | $ | (229,592 | ) | $ | (1,639,565 | ) | $ | (12,267,448 | ) | $ | 43,300,889 | ||||||
As permitted by tax regulations, the Aggressive Equity Fund intends to defer a net realized capital loss of $617,700 incurred from November 1, 2007 to December 31, 2007.
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6. | Fund Share Transactions (amounts in thousands) |
Share transactions for the periods ended June 30, 2008 and December 31, 2007 were as follows:
Shares | Dollars | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||
Multi-Style Equity Fund | ||||||||||||||
Proceeds from shares sold | 1,726 | 3,423 | $ | 24,678 | $ | 54,038 | ||||||||
Proceeds from reinvestment of distributions | 494 | 1,528 | 6,957 | 23,579 | ||||||||||
Payments for shares redeemed | (1,143 | ) | (2,246 | ) | (16,352 | ) | (35,711 | ) | ||||||
Total net increase (decrease) | 1,077 | 2,705 | $ | 15,283 | $ | 41,906 | ||||||||
Aggressive Equity Fund | ||||||||||||||
Proceeds from shares sold | 789 | 1,325 | $ | 9,291 | $ | 19,061 | ||||||||
Proceeds from reinvestment of distributions | 34 | 2,315 | 397 | 30,456 | ||||||||||
Payments for shares redeemed | (994 | ) | (1,505 | ) | (11,611 | ) | (21,845 | ) | ||||||
Total net increase (decrease) | (171 | ) | 2,135 | $ | (1,923 | ) | $ | 27,672 | ||||||
Non-U.S. Fund | ||||||||||||||
Proceeds from shares sold | 1,781 | 3,562 | $ | 21,256 | $ | 52,185 | ||||||||
Proceeds from reinvestment of distributions | 286 | 6,481 | 3,612 | 86,474 | ||||||||||
Payments for shares redeemed | (1,377 | ) | (1,975 | ) | (16,670 | ) | (29,055 | ) | ||||||
Total net increase (decrease) | 690 | 8,068 | $ | 8,198 | $ | 109,604 | ||||||||
Real Estate Securities Fund | ||||||||||||||
Proceeds from shares sold | 1,435 | 2,871 | $ | 22,469 | $ | 60,833 | ||||||||
Proceeds from reinvestment of distributions | 160 | 4,945 | 2,601 | 78,706 | ||||||||||
Payments for shares redeemed | (1,694 | ) | (5,015 | ) | (25,428 | ) | (99,943 | ) | ||||||
Total net increase (decrease) | (99 | ) | 2,801 | $ | (358 | ) | $ | 39,596 | ||||||
Core Bond Fund | ||||||||||||||
Proceeds from shares sold | 4,829 | 8,092 | $ | 49,657 | $ | 82,694 | ||||||||
Proceeds from reinvestment of distributions | 649 | 1,601 | 6,602 | 16,240 | ||||||||||
Payments for shares redeemed | (1,882 | ) | (2,377 | ) | (19,427 | ) | (24,283 | ) | ||||||
Total net increase (decrease) | 3,596 | 7,316 | $ | 36,832 | $ | 74,651 | ||||||||
7. | Interfund Lending Program |
The Investment Company has been granted permission from the Securities and Exchange Commission to participate in a joint lending and borrowing facility (the “Credit Facility”). Funds of the Investment Company may borrow money from the RIC Money Market Fund for temporary purposes. All such borrowing and lending will be subject to a participating fund’s fundamental investment limitations. The RIC Money Market Fund will lend through the program only when the returns are higher than those available from an investment in repurchase agreements or short-term reserves. The Funds will borrow through the program only when the costs are equal to or lower than the cost of bank loans. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one business day’s notice. A participating fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to the RIC Money Market Fund could result in a lost investment opportunity or additional borrowing costs. For the period ended June 30, 2008, the Funds presented herein did not borrow through the interfund lending program.
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8. | Record Ownership |
As of June 30, 2008, the following table includes shareholders of record with greater than 10% of the total outstanding shares of each respective Fund. The Northwestern Mutual Life Insurance Company separate accounts were the largest shareholder in each Fund.
Funds | # of Shareholders | % | ||
Multi-Style Equity | 2 | 84.2 | ||
Aggressive Equity | 2 | 82.9 | ||
Non-U.S. | 2 | 88.3 | ||
Real Estate Securities | 2 | 88.4 | ||
Core Bond | 2 | 80.1 |
9. | Restricted Securities |
Restricted securities are subject to contractual limitations on resale, are often issued in private placement transactions, and are not registered under the Securities Act of 1933 (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.
A Fund may invest a portion of its net assets not to exceed 15% in securities that are illiquid. Illiquid securities are securities that may not be readily marketable, and that cannot be sold within seven days in the ordinary course of business at the approximate amount at which the Fund has valued the securities. Restricted securities are generally considered to be illiquid.
The following table lists restricted securities held by a Fund that are illiquid. The following table does not include (1) securities deemed liquid by RIMCo or a money manager pursuant to Board approved policies and procedures or (2) illiquid securities that are not restricted securities as designated on the Fund’s Schedule of Investments.
Fund - % of Net Assets Securities | Acquisition Date | Principal or Shares | Cost per $ | Cost $ | Market Value (000) $ | |||||
Core Bond Fund - 1.1% | ||||||||||
Americo Life, Inc. | 12/12/06 | 75,000 | 102.46 | 77 | 76 | |||||
BNP Paribas Capital Trust | 06/01/06 | 450,000 | 112.21 | 505 | 470 | |||||
Bombardier, Inc. | 11/10/06 | EUR 125,000 | 128.47 | 161 | 188 | |||||
Catlin Insurance Co., Ltd. | 01/11/07 | 100,000 | 100.00 | 100 | 73 | |||||
CIT Mortgage Loan Trust | 10/05/07 | 130,000 | 100.00 | 130 | 85 | |||||
CIT Mortgage Loan Trust | 10/05/07 | 180,000 | 100.00 | 180 | 90 | |||||
CIT Mortgage Loan Trust | 10/05/07 | 383,135 | 100.00 | 383 | 345 | |||||
DG Funding Trust | 11/04/03 | 49 | 10,537.12 | 516 | 487 | |||||
Nationwide Life Global Funding I | 06/24/08 | 1,900,000 | 97.73 | 1,857 | 1,898 | |||||
Residential Capital LLC | 06/06/08 | 160,000 | 58.20 | 93 | 78 | |||||
Symetra Financial Corp. | 06/02/06 | 150,000 | 98.31 | 148 | 132 | |||||
3,922 | ||||||||||
Illiquid securities and restricted securities may be priced by the Funds using fair value procedures approved by the Board of Trustees.
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Basis for Approval of Investment Advisory Contracts
Approval of Investment Advisory Agreement
The Board of Trustees, including all of the Independent Trustees, last considered and approved the continuation of the advisory agreement with RIMCo (the ‘‘RIMCo Agreement’’) and the portfolio management contract with each Money Manager of the Funds (collectively, the ‘‘portfolio management contracts’’) at a meeting held on April 22, 2008. During the course of a year, the Trustees receive a wide variety of materials regarding the investment performance of the Funds, sales and redemptions of the Funds’ shares, and the management of the Funds by RIMCo. In preparation for the annual review, the Independent Trustees, with the advice and assistance of their independent counsel, also requested and the Board considered (1) information and reports prepared by RIMCo relating to the services provided by RIMCo (and its affiliates) to the Funds; and (2) information (the ‘‘Third-Party Information’’) received from an independent, nationally recognized provider of investment company information comparing the performance of each of the Funds and their respective operating expenses over various periods of time with other peer funds (‘‘Comparable Funds’’) not managed by RIMCo, believed by the provider to be generally comparable in investment objectives and size to the Funds; The foregoing information requested by the Trustees or provided by RIMCo is collectively called the “Agreement Renewal Information.” The Trustees’ evaluations also reflected the knowledge and familiarity gained as Board members of the Funds and other funds in the same complex with respect to services provided by RIMCo, RIMCo’s affiliates and each Money Manager. The Trustees received a memorandum from counsel to the Funds discussing the legal standards for their consideration of the continuations of the RIMCo Agreement and the portfolio management contracts and the Independent Trustees separately received a memorandum regarding their responsibilities from their independent counsel.
On April 21, 2008, the Independent Trustees met to review the Agreement Renewal Information in a private session with their independent counsel at which no representatives of RIMCo or the Funds’ management were present. At the April 22 meeting of the Board of Trustees, the Board, including the Independent Trustees, reviewed the proposed continuance of the RIMCo Agreement and the portfolio management contracts with management, counsel to the Funds and independent counsel to the Independent Trustees. Presentations made by RIMCo to the Board as part of this review encompassed the Funds and all other RIMCo-managed funds for which the Board has supervisory responsibility. Following this review, but prior to voting, the Independent Trustees again met in a private session with their independent counsel to evaluate additional information and analyses received from RIMCo and management at the Board meeting. The discussion below reflects all of these reviews.
In evaluating the portfolio management contracts, the Board considered that the Funds, in employing a manager-of-managers method of investment, operate in a manner that is distinctly different from most other investment companies. In the case of most other investment companies, an 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. RIMCo has engaged multiple unaffiliated Money Managers for all Funds.
The Board considered that RIMCo (rather than any Money Manager) is responsible under the RIMCo Agreement for determining, implementing and maintaining the investment program for each Fund. Assets of each Fund generally have been allocated among the multiple Money Managers selected by RIMCo, subject to Board approval, for that Fund. RIMCo manages directly a portion of certain Funds’ assets employing a “select holdings strategy,” as described below, and directly manages the investment of each Fund’s cash reserves. RIMCo also may manage directly any portion of each Fund’s assets that RIMCo determines not to allocate to the Money Managers and portions of a Fund during transitions between Money Managers. In all cases, assets are managed directly by RIMCo pursuant to authority provided by the RIMCo Agreement.
RIMCo is responsible for selecting, subject to Board approval, Money Managers for each Fund and for actively managing allocations and reallocations of assets among the Money Managers. RIMCo’s goal is to construct and manage diversified portfolios in a risk aware manner. Each Money Manager for a Fund in effect performs the function of an individual portfolio manager who is responsible for selecting portfolio securities for the portion of the Fund assigned to it by RIMCo (each, a ‘‘segment’’) in accordance with the Fund’s applicable investment objective, policies and restrictions, any constraints placed by RIMCo upon their selection of portfolio securities and the Money Manager’s specified role in a Fund. RIMCo is responsible for communicating performance expectations to each Money Manager; supervising compliance by each Money Manager with each Fund’s investment objective and policies; authorizing Money Managers to engage in certain investment strategies for a Fund; and recommending 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, RIMCo is responsible for recommending to the Board additions of new Money Managers or replacements of existing Money Managers at any time when, based on RIMCo’s research and ongoing review and analysis, such actions are appropriate. RIMCo may impose specific investment constraints from time to time for each Money Manager intended to capitalize on the strengths of that Money Manager or to coordinate the investment activities of Money Managers for the Fund in a complementary manner. Therefore, RIMCo’s selection of Money Managers is made not only on the
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basis of performance considerations but anticipated compatibility with other Money Managers in the same Fund. In light of the foregoing, the overall performance of each Fund over appropriate periods reflects, in great part, the performance of RIMCo in designing the Fund’s investment program, structuring the Fund, selecting an effective Money Manager with a particular investment style or sub-style for a segment that is complementary to the styles of the Money Managers of other Fund segments, and allocating assets among the Money Managers in a manner designed to achieve the objectives of the Fund.
The Board considered that the prospectuses for the Funds and other public disclosures emphasize to investors RIMCo’s role as the principal investment manager for each Fund, rather than the investment selection role of the Funds’ 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 such Fund.
The Board also considered the demands and complexity of managing the Funds pursuant to the manager-of-managers structure, the special expertise of RIMCo with respect to the manager-of-managers structure of the Funds and the likelihood that, at the current expense ratio of each Fund, there would be no acceptable alternative investment managers to replace RIMCo on comparable terms given the need to continue the manager-of-managers strategy of such Fund selected by shareholders in purchasing their shares.
In addition to these general factors relating to the manager-of-managers structure of the Funds, the Trustees considered, with respect to each Fund, various specific factors in evaluating renewal of the RIMCo Agreement, including the following:
1. | The nature, scope and quality of the services provided to the Fund by RIMCo; |
2. | The advisory fee paid by the Fund to RIMCo and the fact that it encompasses all investment advisory fees paid by the Fund, including the fees for any Money Managers of such Fund; |
3. | Information provided by RIMCo as to other fees and benefits received by RIMCo or its affiliates from the Fund, including any administrative, transfer agent, cash management and securities lending fees, soft dollar arrangements and commissions in connection with portfolio securities transactions; |
4. | Information provided by RIMCo as to expenses incurred by the Fund; and |
5. | Information provided by RIMCo as to the profits that RIMCo derives from its mutual fund operations generally and from the Fund. |
As noted above, RIMCo, pursuant to the terms of the RIMCo Agreement, directly managed a portion—up to 10%—of the assets of the Multi-Style Equity Fund (the ‘‘Participating Fund’’) during the past year utilizing a select holdings strategy, the actual allocation being determined by the Participating Fund’s RIMCo portfolio manager. The select holdings strategy utilized by RIMCo in managing such assets for the Participating Fund is designed to increase the Participating Fund’s exposure to stocks that are viewed as attractive by multiple Money Managers of the Participating Fund. The Board reviewed the results of the select holdings strategy in respect of the Participating Fund since implementation, taking into account that the strategy has been utilized for a limited period of time. The Trustees considered that RIMCo is not required to pay investment advisory fees to a Money Manager with respect to assets for which the select holdings strategy is utilized and that the profits derived by RIMCo generally and from the Participating Fund consequently may increase incrementally. The Board, however, also considered RIMCo’s advice that it pays certain Money Managers additional fees for providing information and other services in connection with the select holdings strategy and incurs additional costs in carrying out the select holdings strategy, the limited amount of assets that are managed directly by RIMCo pursuant to the select holdings strategy, and the fact that the aggregate investment advisory fees paid by the Participating Fund are not increased as a result of the select holdings strategy.
In evaluating the reasonableness of the Funds’ investment advisory fees in light of Fund performance, the Board considered that RIMCo, in the Agreement Renewal Information and at past meetings, noted differences between the investment strategies of certain Funds and their respective Comparable Funds in pursuing their investment objectives, including Fund strategies which seek to achieve a lower tracking error (i.e., the difference, whether positive or negative, between the return of a fund and its benchmark) and resulting lower return volatility than Comparable Funds. According to RIMCo, these strategies may be expected to result, and for certain Funds during the periods covered by the Third-Party Information did result, in lower performance than that of some of their respective Comparable Funds. According to RIMCo, the strategies pursued by the Funds, among other things, are intended to result in less volatile, more moderate returns relative to each Fund’s performance benchmark rather than more volatile, more extreme returns that its Comparable Funds may experience over time.
The Board considered for each Fund whether economies of scale have been realized and whether the fees for such Fund appropriately reflect or should be revised to reflect any such economies. The Board determined that, after giving effect to any
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applicable fee or expense caps, waivers and/or reimbursements, the investment advisory fees for each Fund appropriately reflect any economies of scale realized by that Fund, based upon such factors as the variability of Money Manager investment advisory fees and other factors associated with the manager-of-managers structure employed by the Funds. The Trustees considered that fees payable to RIMCo by institutional clients with investment objectives similar to those of the Funds and other funds under the Board’s supervision are lower, and may, in some cases by substantially lower that the rates paid by funds supervised by the Board, including the Funds. The Trustees considered the differences in the scope of services it provides to institutional clients and the Funds. In response to the Trustees’ inquiries, RIMCO has previously noted, among other things, that institutional clients have fewer administrative needs than the Funds. RIMCo noted that since the Funds must constantly issue and redeem their shares, they are more difficult to manage than institutional accounts, where assets are relatively stable. Accordingly, the Trustees did not regard these fee differences as relevant to their deliberations.
On the basis of the Agreement Renewal Information, and other information previously received by the Board from RIMCo during the course of the current year or prior years or presented at the April 22 Board meeting by RIMCo, the Board, in respect of each Fund, found, after giving effect to any applicable waivers and/or reimbursements, (1) the advisory fee charged by RIMCo to be reasonable in light of the nature, scope and quality of the services provided to the Funds; (2) the relative expense ratio of the Fund was comparable to those of its Comparable Funds; (3) RIMCo’s methodology of allocating expenses of operating funds in the complex was reasonable; and (4) RIMCo’s profitability with respect to the Fund was not excessive in light of the nature, scope and quality of the services provided by RIMCo.
The Board further concluded that, under the circumstances, the performance of each of the Funds supported continuation of the RIMCo Agreement except that the Board concluded that, as discussed below, performance of the Non-U.S. Fund did not support a determination against continuation of the RIMCo Agreement in respect of that Fund. The Board, in assessing the Funds’ performance, focused upon each Fund’s performance for the 1-, 3- and 5-year periods as most relevant.
With respect to the RIF Non-U.S. Fund, the Third-Party Information showed that the Fund’s performance was ranked in the fourth quintile for the 1- and 3-year periods ended December 31, 2007 and in the third quintile for the 5- and 10-year periods ended such date. RIMCo noted that the quantitative investment strategy employed by one Money Manager for the Fund, like quantitative strategies generally, had been adversely affected by market conditions in the past year and that another Money Manager performed below expectations in a market environment that should have been more favorable for it and was subsequently replaced by a higher confidence manager. RIMCo noted further that the relatively small size of the RIF Non-U.S. Fund has constrained the number of Money Managers that may be employed to manage its portfolio, limiting its exposure to multiple, different investment strategies. Lastly, RIMCo noted that the Comparable Funds for the RIF Non-U.S. Fund have had greater emerging markets exposure and that the Fund tends to invest in larger cap stocks than the Comparable Funds, a tendency which has put it at a disadvantage in periods when emerging markets stocks and smaller cap stocks were the best performers.
In evaluating performance, the Board considered each Fund’s absolute performance and its performance relative to appropriate benchmarks and indices and its Comparable Funds. In assessing performance, the Board also considered RIMCo’s investment strategy of managing the Funds in a risk aware manner.
After considering the foregoing and other relevant factors, the Board concluded that continuation of the RIMCo Agreement on its current terms and conditions would be in the best interests of the Funds and their respective shareholders and voted to approve the continuation of the Agreement.
At the April 22 Board meeting, with respect to the evaluation of the terms of portfolio management contracts with Money Managers, the Board received and considered information from RIMCo reporting, among other things, for each Money Manager, the Money Manager’s performance over various periods; RIMCo’s assessment of the performance of each Money Manager; any significant business relationships between the Money Manager and RIMCo or Russell Financial Services, Inc., the Funds’ underwriter; and RIMCo’s recommendation to retain the Money Manager at the current fee rate, to retain the Money Manager at a reduced fee rate or to terminate the Money Manager. RIMCo recommended that each Money Manager be retained at its current fee rate. RIMCo has advised the Board that it does not regard Money Manager profitability as relevant to its evaluation of the portfolio management contracts with Money Managers because the willingness of Money Managers to serve in such capacity depends upon arm’s-length negotiations with RIMCo; RIMCo is aware of the fees charged by Money Managers to other clients; and RIMCo believes that the fees agreed upon with Money Managers are reasonable in light of the anticipated quality of investment advisory services to be rendered. The Board accepted RIMCo’s explanation in light of the Board’s findings as to the reasonableness of the aggregate investment advisory fees paid by each Fund and the fact that each Money Manager’s fee is paid by RIMCo.
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Based substantially upon RIMCo’s recommendations, together with the information received from RIMCo in support of its recommendations at the April 22 meeting, the Board concluded that the fees paid to the Money Managers of each Fund are reasonable in light of the 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.
In their deliberations, the Trustees did not identify any particular information as to the RIMCo Agreement or, other than RIMCo’s recommendation, the portfolio management contract with any Money Manager that was all-important or controlling 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.
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Shareholder Requests for Additional Information — June 30, 2008 (Unaudited)
A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third quarters of each year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, (ii) on the Securities and Exchange Commission’s website at www.sec.gov, and (iii) at the Securities and Exchange Commission’s public reference room.
The Board has delegated to RIMCo, 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. RIMCo has established a proxy voting committee (“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 is available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, and (ii) on the Securities and Exchange Commission’s website at www.sec.gov.
If possible, depending on contract owner registration and address information, and unless you have otherwise opted out, only one copy of the RIF prospectus and each annual and semi-annual report will be sent to contract owners at the same address. If you would like to receive a separate copy of these documents, please contact your Insurance Company. If you currently receive multiple copies of the prospectus, annual report and semi-annual report and would like to request to receive a single copy of these documents in the future, please call your Insurance Company. Some Insurance Companies may offer electronic delivery of the Funds’ prospectus and annual and semiannual reports. Please contact your Insurance Company for further details.
Shareholder Requests for Additional Information | 101 |
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Russell Investment Funds
Disclosure of Information about Fund Trustees and Officers — June 30, 2008 (Unaudited)
The following tables provide information for each officer and trustee of the Russell Fund Complex. The Russell Fund Complex consists of Russell Investment Company (“RIC”), which has 44 funds, and Russell Investment Funds (“RIF”), which has 9 funds. Each of the trustees is a trustee of both RIC and RIF. The first table provides information for the interested trustee. The second table provides information for the independent trustees. The third table provides information for the trustees emeritus. The fourth table provides information for the officers.
Name, Age, Address | Position(s) Held with Fund and Length of Time Served | Term of Office* | Principal Occupation(s) During the Past 5 Years | No. of Portfolios in Russell Fund Complex Overseen by Trustee | Other Directorships Held by Trustee | |||||
INTERESTED TRUSTEES | ||||||||||
#Greg J. Stark Born May 3, 1968
909 A Street 98402-1616 | President and Chief Executive Officer since 2004
Trustee since 2007 | Appointed until successor is duly elected and qualified
Until successor is chosen and qualified by Trustees | • President and CEO RIC and RIF • Chairman of the Board, President and CEO, RIMCo • Chairman of the Board, President and CEO, RFD • Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) • Until 2004, Managing Director, of Individual Investor Services, FRC • 2000 to 2004 Managing Director, Sales and Client Service, RIMCo | 53 | None | |||||
INDEPENDENT TRUSTEES | ||||||||||
Thaddas L, Alston Born April 7, 1945
909 A Street 98402-1616 | Trustee since 2006 | Appointed until successor is duly elected and qualified | • Senior Vice President, Larco Investments, Ltd. (real estate firm) | 53 | None | |||||
Kristianne Blake Born January 22, 1954
909 A Street 98402-1616 | Trustee since 2000
Chairperson since 2005 | Appointed until successor is duly elected and qualified
Annual | • Director and Chairman of the Audit Committee, Avista Corp. • Trustee and Chairman of the Operations Committee, Principal Funds and Principal Variable Contracts Funds • Regent, University of Washington • President, Kristianne Gates Blake, P.S. (accounting services) • February 2002 to June 2005, Chairman of the Audit Committee, RIC and RIF • Trustee and Chairman of the Operations and Distribution Committee, WM Group of Funds, 1999–2006 | 53 | • Director, Avista Corp; (electric utilities) • Trustee, Principal Investors Funds (investment company); • Trustee, Principal Variable Contracts Funds (investment company) |
# | Mr. Stark is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee. |
* | Each Trustee is subject to mandatory retirement at age 72. |
102 | Disclosure of Information about Fund Trustees and Officers |
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Russell Investment Funds
Disclosure of Information about Fund Trustees and Officers, continued — June 30,2008
(Unaudited)
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 | |||||
INDEPENDENT TRUSTEES (continued) | ||||||||||
Daniel P. Connealy Born June 6, 1946
909 A Street 98402-1616 | Trustee since 2003
Chairman of Audit Committee since 2005 | Appointed until successor is duly elected and qualified
Appointed until successor is duly elected and qualified | • June 2004 to present, Senior Vice President and Chief Financial Officer, Waddell & Reed Financial, Inc. • 2001–2003, Vice President and Chief Financial Officer, Janus Capital Group Inc. | 53 | None | |||||
Jonathan Fine
909 A Street 98402-1616 | Trustee since 2004 | Appointed until successor is duly elected and qualified | • President and Chief Executive Officer, United Way of King County, WA | 53 | None | |||||
Raymond P. Tennison, Jr.
909 A Street 98402-1616 | Trustee since 2000
Chairman of the Nominating and Governance Committee since 2007 | Appointed until successor is duly elected and qualified.
Appointed until successor is duly elected and qualified. | • President, Simpson Investment Company and several additional subsidiary companies, including Simpson Timber Company, Simpson Paper Company and Simpson Tacoma Kraft Company | 53 | None | |||||
Jack R. Thompson Born March 21, 1949
909 A Street 98402-1616 | Trustee since 2005 | Appointed until successor is duly elected and qualified | • September 2003 to present, Independent Board Chair and Chairman of the Audit Committee, Sparx Funds • September 2007 to present, Director, Life Advantage Corporation (health products company) • May 1999 to May 2003, President, Chief Executive Officer and Director, Berger Financial Group, LLC • May 1999 to May 2003, President and Trustee, Berger Funds | 53 | • Director, Sparx Japan Funds (investment company) • Director, Life Advantage Corporation (health products company) | |||||
Julie W.Weston Born October 2, 1943
909 A Street 98402-1616 | Trustee since 2002
Chairperson of the Investment Committee since 2006 | Appointed until successor is duly elected and qualified
Appointed until successor is duly elected and qualified | • Retired | 53 | None |
* | Each Trustee is subject to mandatory retirement at age 72. |
Disclosure of Information about Fund Trustees and Officers | 103 |
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Russell Investment Funds
Disclosure of Information about Fund Trustees and Officers, continued — June 30, 2008
(Unaudited)
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 | |||||
TRUSTEES EMERITUS | ||||||||||
*George F. Russell, Jr. Born July 3, 1932
909 A Street 98402-1616 | Trustee Emeritus and Chairman Emeritus since 1999 | Until resignation or removal | • Director Emeritus, Frank Russell Company (investment consultant to institutional investors (“FRC”)); and RIMCo • Chairman Emeritus, RIC and RIF; Russell Implementation Services Inc. (broker-dealer and investment adviser (“RIS”)); Russell 20-20 Association (non-profit corporation); and Russell Trust Company (non-depository trust company (“RTC”)) • Chairman, Sunshine Management Services, LLC (investment adviser) | 53 | None | |||||
Paul E. Anderson Born October 15, 1931
909 A Street 98402-1616 | Trustee Emeritus since 2007 | Five year term | • President, Anderson Management Group LLC (private investments consulting) • February 2002 to June 2005, Lead Trustee, RIC and RIF • Trustee of RIC and RIF Until 2006 • Chairman of the Nominating and Governance Committee 2006 | 53 | None | |||||
William E. Baxter Born June 8, 1925
909 A Street 98402-1616 | Trustee Emeritus since 2004 | Five year term | • Retired since 1986 • Trustee of RIC and RIF Until 2004 | 53 | None | |||||
Lee C. Gingrich Born October 6, 1930
909 A Street 98402-1616 | Trustee Emeritus since 2006 | Five year term | • Retired since 1995 • Trustee of RIC and RIF Until 2005 • Chairman of the Nominating and Governance Committee 2001–2005 | 53 | None | |||||
Eleanor W. Palmer Born May 5, 1926
909 A Street 98402-1616 | Trustee Emeritus since 2004 | Five year term | • Retired since 1981 • Trustee of RIC and RIF Until 2004 | 53 | None |
* | Mr. Russell is also a director emeritus of one or more affiliates of RIC and RIF. |
104 | Disclosure of Information about Fund Trustees and Officers |
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Russell Investment Funds
Disclosure of Information about Fund Trustees and Officers, continued — June 30, 2008
(Unaudited)
Name, Age, Address | Position(s) Held with Fund and Length of Time Served | Term of Office | Principal Occupation(s) During the Past 5 Years | |||
OFFICERS | ||||||
Greg J. Stark Born May 3, 1968
909 A Street 98402-1616 | President and Chief Executive Officer since 2004 | Until successor is chosen and qualified by Trustees | • President and CEO, RIC and RTF • Chairman of the Board, President and CEO, RIMCo • Chairman of the Board, President and CEO, RFD • Chairman of the Board and President, Russell Insurance Agency, Inc. (insurance agency (“RIA”)) • Until 2004, Managing Director of Individual Investor Services, FRC • 2000 to 2004, Managing Director, Sales and Client Service, RIMCo | |||
Cheryl Wichers Born December 16, 1966
909 A Street 98402-1616 | Chief Compliance Officer since 2005 | Until removed by Independent Trustees | • Chief Compliance Officer, RIC • Chief Compliance Officer, RTF • Chief Compliance Officer, RIMCo • April 2002–May 2005, Manager, Global Regulatory Policy • 1998–2002, Compliance Supervisor, Russell Investment Group | |||
Peter Gunning
909 A Street 98402-1616 | Chief Investment Officer since 2008 | Until removed by Trustees | • Chief Investment Officer, RIC, RIF • 1996 to 2008, Chief Financial Officer, Russell, Asia Pacific | |||
Mark E. Swanson Born November 26, 1963
909 A Street 98402-1616 | Treasurer and Chief Accounting Officer since 1998 | Until successor is chosen and qualified by Trustees | • Treasurer, Chief Accounting Officer and CFO, RIC and RIF • Director, Funds Administration, RIMCo, RTC and RFD • Treasurer and Principal Accounting Officer, SSgA Funds | |||
Gregory J. Lyons Born August 24, 1960
909 A Street 98402-1616 | Secretary since 2007 | Until successor is chosen and qualified by Trustees | • Associate General Counsel and Assistant Secretary FRC and RIA • Director and Secretary, RIMCo and RFD • Secretary and Chief Legal Counsel, RIC and RIF |
Disclosure of Information about Fund Trustees and Officers | 105 |
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909 A Street, Tacoma, Washington 98402
(800) 787-7354
Interested Trustees
Greg J. Stark
Independent Trustees
Thaddas L. Alston
Kristianne Blake
Daniel P. Connealy
Jonathan Fine
Raymond P. Tennison, Jr.
Jack R. Thompson
Julie W. Weston
Trustees Emeritus
George F. Russell, Jr.
Paul E. Anderson
William E. Baxter
Lee C. Gingrich
Eleanor W. Palmer
Officers
Greg J. Stark, President and Chief Executive Officer
Cheryl Wichers, Chief Compliance Officer
Peter Gunning, Chief Investment Officer
Mark E. Swanson, Treasurer and Chief Accounting Officer
Gregory J. Lyons, Secretary
Adviser
Russell Investment Management Company
909 A Street
Tacoma, WA 98402
Administrator and Transfer and Dividend Disbursing Agent
Russell Fund Services Company
909 A Street
Tacoma, WA 98402
Custodian
State Street Bank and Trust Company
Josiah Quincy Building
200 Newport Avenue
North Quincy, MA 02171
Office of Shareholder Inquiries
909 A Street
Tacoma, WA 98402
(800) 787-7354
Legal Counsel
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116-5021
Distributor
Russell Financial Services, Inc.
909 A Street
Tacoma, WA 98402
Money Managers as of June 30, 2008
Multi-Style Equity Fund
Arnhold and S. Bleichroeder Advisers, LLC, New York, NY
Columbus Circle Investors, Stamford, CT
DePrince, Race & Zollo, Inc., Winter Park, FL
Institutional Capital LLC, Chicago, IL
Jacobs Levy Equity Management, Inc., Florham Park, NJ
Montag & Caldwell, Inc., Atlanta, GA
Suffolk Capital Management, LLC, New York, NY
Turner Investment Partners, Inc., Berwyn, PA
Aggressive Equity Fund
ClariVest Asset Management LLC, San Diego, CA
DePrince, Race & Zollo, Inc., Winter Park, FL
Gould Investment Partners LLC, Berwyn, PA
Jacobs Levy Equity Management, Inc., Florham Park, NJ
PanAgora Asset Management, Inc., Boston, MA
Ranger Investment Management, L.P., Dallas, TX
Signia Capital Management, LLC, Spokane, WA
Tygh Capital Management, Inc., Portland, OR
Non-U.S. Fund
Altrinsic Global Advisors, LLC, Stamford, CT
AQR Capital Management, LLC, Greenwich, CT
MFS Institutional Advisors, Inc., Boston, MA
Wellington Management Company, LLP, Boston, MA
Real Estate Securities Fund
AEW Management and Advisors, L.P., Boston, MA
Cohen & Steers Capital Management, Inc., New York, NY
Heitman Real Estate Securities LLC, Chicago, IL
INVESCO Institutional (N.A.), Inc. which acts as a money manager to the Fund through its INVESCO Real Estate division, Dallas, TX
RREEF America L.L.C., Chicago, IL
Core Bond Fund
Goldman Sachs Asset Management, L.P., New York, NY
Metropolitan West Asset Management, LLC, Los Angeles, CA
Pacific Investment Management Company LLC, Newport Beach, CA
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.
106 | Manager, Money Managers and Service Providers |
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Russell Investment Funds | 909 A Street | 800-787-7354 | ||
Tacoma, Washington 98402 | Fax: 253-591-3495 | |||
www.russell.com |
36-08-072
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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] |
Items 5. | Audit Committee of Listed Registrants. [Not Applicable] |
Item 6. | [Schedule of investments is included as part of the report to shareholders filed under Item 1 of this form] |
Items 7-9. | [Not Applicable] |
Item 10. | Submission of Matters to a Vote of Security Holders |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. | Controls and Procedures |
(a) Registrant’s principal executive officer and principal financial officer have concluded that Registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the date this report is filed with the Securities and Exchange Commission.
(b) There were no significant changes in Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected or is likely to materially affect Registrant’s internal control over financial reporting.
Item 12. | Exhibit List |
(a) Certification for principal executive officer of Registrant as required by Rule 30a-2(a) under the Act and certification for principal financial officer of Registrant as required by Rule 30a-2(a) under the Act.
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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/ Greg J. Stark | |||||||
Greg J. Stark Principal Executive Officer and Chief Executive Officer |
Date: September 3, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Greg J. Stark | |||||||
Greg J. Stark Principal Executive Officer and Chief Executive Officer |
Date: September 3, 2008
By: | /s/ Mark E. Swanson | |||||||
Mark E. Swanson Principal Financial Officer, Principal Accounting Officer and Treasurer |
Date: September 3, 2008