Russell Investment Funds NCSRS Certified semi-annual shareholder report (management investment company)


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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, 2009 – June 30, 2009

Item 1.

Reports to Stockholders

LOGO

2009 SEMIANNUAL REPORT

Russell Investment Funds

JUNE 30, 2009

FUND

Multi-Style Equity Fund

Aggressive Equity Fund

Non-U.S. Fund

Core Bond Fund

Real Estate Securities Fund

LOGO

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.

Russell Investment Funds

Semiannual Report

June 30, 2009 (Unaudited)

Table of Contents


		Page
Multi-Style Equity Fund		3
Aggressive Equity Fund		10
Non-U.S. Fund		20
Core Bond Fund		28
Real Estate Securities Fund		50
Notes to Schedules of Investments		55
Statements of Assets and Liabilities		56
Statements of Operations		58
Statements of Changes in Net Assets		60
Financial Highlights		62
Notes to Financial Highlights		64
Notes to Financial Statements		65
Basis for Approval of Investment Advisory Contracts		85
Shareholder Requests for Additional Information		89
Disclosure of Information about Fund Trustees and Officers		90
Adviser, Money Managers and Service Providers		94

Russell Investment Funds

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 products and services offered through Russell Financial Services, Inc., member FINRA, part of Russell Investments.

Performance quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

Russell Investment Funds

Multi-Style Equity Fund

Shareholder Expense Example — June 30, 2009 (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, 2009 to June 30, 2009.

Actual Expenses

The information in the table under the heading “Actual Performance” provides information about actual account values and actual expenses. You may use the information in this column, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first column in the row entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical Performance (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate

of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The fee and expenses shown in this section do not reflect any Insurance Company Separate Account or Policy Charges.


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2009	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2009	$	1,062.30	$	1,020.53
Expenses Paid During Period*	$	4.40	$	4.31

Expenses are equal to the Fund’s annualized expense ratio of 0.86% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 181/365 (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

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Common Stocks - 92.9%
Consumer Discretionary - 11.5%
Amazon.com, Inc. (Æ)	23,190	1,940
American Eagle Outfitters, Inc.	42,100	597
Apollo Group, Inc. Class A (Æ)	6,558	466
AutoZone, Inc. (Æ)(Ñ)	4,926	744
Avon Products, Inc.	39,760	1,025
Bed Bath & Beyond, Inc. (Æ)	15,760	485
Best Buy Co., Inc. (Ñ)	29,109	975
BJ’s Wholesale Club, Inc. (Æ)(Ñ)	4,300	139
CBS Corp. Class B	82,400	570
Clear Channel Outdoor Holdings, Inc. Class A (Æ)	5,724	30
Coach, Inc.	8,400	226
Costco Wholesale Corp.	22,000	1,005
DISH Network Corp. Class A (Æ)	16,300	264
Dollar Tree, Inc. (Æ)	8,466	356
DR Horton, Inc.	12,800	120
eBay, Inc. (Æ)	61,100	1,047
Estee Lauder Cos., Inc. (The) Class A	10,479	342
Foot Locker, Inc.	13,700	143
Ford Motor Co. (Æ)(Ñ)	75,882	461
Fortune Brands, Inc.	9,200	320
Garmin, Ltd. (Ñ)	30,300	722
Goodyear Tire & Rubber Co. (The) (Æ)	22,980	259
Guess?, Inc.	9,040	233
Home Depot, Inc.	23,341	552
JC Penney Co., Inc.	24,300	698
Johnson Controls, Inc. (Ñ)	42,000	912
Jones Apparel Group, Inc.	11,400	122
Kohl’s Corp. (Æ)	26,104	1,116
Limited Brands, Inc.	50,800	608
Lowe’s Cos., Inc. (Ñ)	124,659	2,420
Macy’s, Inc.	48,400	569
McDonald’s Corp.	57,529	3,307
McGraw-Hill Cos., Inc. (The)	21,300	641
Meritage Homes Corp. (Æ)(Ñ)	1,300	25
Newell Rubbermaid, Inc.	34,600	360
Nike, Inc. Class B (Ñ)	34,409	1,782
NVR, Inc. (Æ)(Ñ)	1,020	512
priceline.com, Inc. (Æ)(Ñ)	4,866	543
Pulte Homes, Inc. (Ñ)	39,390	348
Rent-A-Center, Inc. Class A (Æ)	8,100	144
Starbucks Corp. (Æ)	26,925	374
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö)	32,370	719
Target Corp.	15,900	628
Tiffany & Co. (Ñ)	12,500	317
Timberland Co. Class A (Æ)	3,100	41
Time Warner Cable, Inc.	7,100	225
TRW Automotive Holdings Corp. (Æ)(Ñ)	10,300	116
Viacom, Inc. Class B (Æ)	66,800	1,516
Wal-Mart Stores, Inc.	54,450	2,638
Walt Disney Co. (The)	32,800	765
WESCO International, Inc. (Æ)	7,700	193
Williams-Sonoma, Inc.	45,100	535
Wynn Resorts, Ltd. (Æ)(Ñ)	7,280	257

		35,452


	Principal Amount ($) or Shares	Market Value $
Consumer Staples - 7.4%
Casey’s General Stores, Inc.	2,500	64
Coca-Cola Co. (The)	83,244	3,995
Colgate-Palmolive Co.	20,060	1,419
CVS Caremark Corp.	113,335	3,612
Hansen Natural Corp. (Æ)(Ñ)	23,185	715
Hershey Co. (The) (Ñ)	9,600	346
Hormel Foods Corp.	4,600	159
JM Smucker Co. (The)	424	21
Kimberly-Clark Corp.	15,500	813
Kroger Co. (The)	12,700	280
Lorillard, Inc.	6,600	447
Molson Coors Brewing Co. Class B	13,100	554
Pepsi Bottling Group, Inc.	6,700	227
PepsiCo, Inc.	104,949	5,768
Procter & Gamble Co. (The)	36,540	1,867
Ralcorp Holdings, Inc. (Æ)	2,300	140
Safeway, Inc.	15,100	308
SUPERVALU, Inc.	18,800	243
Sysco Corp.	10,340	232
Tyson Foods, Inc. Class A	16,800	212
Walgreen Co.	25,800	758
Whole Foods Market, Inc. (Ñ)	27,151	515

		22,695


Energy - 9.6%
Anadarko Petroleum Corp.	17,200	781
Apache Corp.	2,500	180
Arch Coal, Inc. (Ñ)	44,500	684
Baker Hughes, Inc.	46,950	1,711
Berry Petroleum Co. Class A (Ñ)	3,600	67
Cameron International Corp. (Æ)	45,990	1,302
Chesapeake Energy Corp.	38,156	757
Chevron Corp.	29,500	1,954
ConocoPhillips	32,200	1,354
Devon Energy Corp.	22,300	1,215
ENSCO International, Inc.	7,100	248
Exxon Mobil Corp.	43,240	3,023
First Solar, Inc. (Æ)(Ñ)	4,751	770
Halliburton Co.	17,900	371
Hess Corp.	2,979	160
Key Energy Services, Inc. (Æ)	15,500	89
Marathon Oil Corp.	97,245	2,930
Occidental Petroleum Corp.	56,165	3,696
Oil States International, Inc. (Æ)	6,000	145
Patterson-UTI Energy, Inc. (Ñ)	10,300	133
Rowan Cos., Inc.	9,400	182
Schlumberger, Ltd.	26,100	1,412
Southwestern Energy Co. (Æ)	7,290	283
Sunoco, Inc. (Ñ)	22,300	517
Tesoro Corp. (Ñ)	10,600	135
Total SA - ADR	21,300	1,155
Transocean, Ltd. (Æ)	20,972	1,558
Valero Energy Corp.	16,900	286
Weatherford International, Ltd. (Æ)	18,730	366
Western Refining, Inc. (Æ)	8,900	63
Williams Cos., Inc. (The)	49,100	767
XTO Energy, Inc.	29,583	1,128

		29,422


4		Multi-Style Equity Fund

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Financial Services - 16.0%
ACE, Ltd.	28,800	1,274
Allied World Assurance Co. Holdings, Ltd.	2,400	98
Allstate Corp. (The)	11,700	285
American Express Co.	34,337	798
American Financial Group, Inc.	11,400	246
Annaly Capital Management, Inc. (ö)	48,600	736
Anworth Mortgage Asset Corp. (ö)	10,100	73
Apollo Investment Corp.	1,000	6
Arch Capital Group, Ltd. (Æ)	2,200	129
Arthur J Gallagher & Co.	7,100	152
Bank of America Corp.	90,000	1,188
Bank of New York Mellon Corp. (The)	99,841	2,926
BB&T Corp.	30,550	671
BioMed Realty Trust, Inc. (ö)	7,200	74
Brandywine Realty Trust (ö)	14,400	107
Brown & Brown, Inc.	1,000	20
Camden Property Trust (ö)	5,900	163
Capital One Financial Corp. (Ñ)	46,950	1,027
Capstead Mortgage Corp. (ö)	8,000	102
Cash America International, Inc.	4,800	112
CBL & Associates Properties, Inc. (ö)(Ñ)	12,900	70
Charles Schwab Corp. (The)	106,000	1,859
Chubb Corp.	19,800	790
Commerce Bancshares, Inc.	3,360	107
DCT Industrial Trust, Inc. (ö)(Ñ)	22,900	93
Discover Financial Services	28,900	297
Extra Space Storage, Inc. (ö)(Ñ)	9,900	83
Fidelity National Financial, Inc. Class A	7,700	104
Fifth Third Bancorp	22,700	161
Fulton Financial Corp. (Ñ)	12,700	66
Goldman Sachs Group, Inc. (The)	28,173	4,154
Hartford Financial Services Group, Inc.	2,500	30
Hospitality Properties Trust (ö)(Ñ)	14,400	171
Hudson City Bancorp, Inc.	17,700	235
JPMorgan Chase & Co.	199,179	6,794
Keycorp	85,400	447
Liberty Property Trust (ö)	7,000	161
Lincoln National Corp.	15,100	260
Mack-Cali Realty Corp. (ö)	7,600	173
Marsh & McLennan Cos., Inc.	36,900	743
Mastercard, Inc. Class A	5,685	951
Mercury General Corp. (Ñ)	18,700	625
MetLife, Inc.	29,333	880
MFA Financial, Inc. (ö)	7,600	53
Morgan Stanley	125,519	3,579
MSCI, Inc. Class A (Æ)	9,100	222
Nasdaq OMX Group, Inc. (The) (Æ)	11,300	241
Navigators Group, Inc. (Æ)	1,000	44
New York Community Bancorp, Inc. (Ñ)	52,700	563
PartnerRe, Ltd. - ADR (Ñ)	4,100	266
PNC Financial Services Group, Inc.	54,885	2,130
Prologis (ö)(Ñ)	33,000	266
Prudential Financial, Inc.	21,200	789
Regions Financial Corp. (Ñ)	54,361	220
StanCorp Financial Group, Inc.	3,100	89
State Street Corp.	2,000	94


	Principal Amount ($) or Shares	Market Value $
SunTrust Banks, Inc.	62,900	1,035
Susquehanna Bancshares, Inc. (Ñ)	12,100	59
Synovus Financial Corp. (Ñ)	58,500	175
T Rowe Price Group, Inc. (Ñ)	17,230	718
Travelers Cos., Inc. (The)	28,500	1,170
UDR, Inc. (ö)(Ñ)	23,772	246
Universal American Corp. (Æ)	4,400	38
Visa, Inc.	53,314	3,319
Wells Fargo & Co.	163,678	3,971
Wilmington Trust Corp. (Ñ)	24,500	335
WR Berkley Corp.	10,200	219
XL Capital, Ltd. Class A	9,300	107

		49,389


Health Care - 12.1%
Abbott Laboratories	77,350	3,639
Alexion Pharmaceuticals, Inc. (Æ)	12,720	523
Allergan, Inc.	18,800	895
Amgen, Inc. (Æ)	31,075	1,645
Boston Scientific Corp. (Æ)	77,082	782
Bristol-Myers Squibb Co.	17,400	353
Cardinal Health, Inc.	3,800	116
Centene Corp. (Æ)	4,500	90
Coventry Health Care, Inc. (Æ)	12,100	226
Covidien PLC	29,500	1,105
Eli Lilly & Co.	7,800	270
Express Scripts, Inc. Class A (Æ)	11,330	779
Forest Laboratories, Inc. (Æ)	13,400	337
Gilead Sciences, Inc. (Æ)	65,000	3,045
Health Net, Inc. (Æ)	4,200	65
Healthspring, Inc. (Æ)	5,200	56
Henry Schein, Inc. (Æ)	6,260	300
Humana, Inc. (Æ)	8,600	277
Illumina, Inc. (Æ)(Ñ)	3,880	151
Intuitive Surgical, Inc. (Æ)(Ñ)	4,027	659
Johnson & Johnson	22,400	1,272
King Pharmaceuticals, Inc. (Æ)	27,200	262
Laboratory Corp. of America Holdings (Æ)	12,000	814
Magellan Health Services, Inc. (Æ)	3,900	128
Merck & Co., Inc.	9,300	260
Mylan, Inc. (Æ)(Ñ)	43,304	565
Myriad Genetics, Inc. (Æ)	16,391	584
Myriad Pharmaceuticals, Inc. (Æ)	4,097	19
Novartis AG - ADR	48,700	1,986
Pfizer, Inc.	183,935	2,759
Schering-Plough Corp.	173,922	4,369
St. Jude Medical, Inc. (Æ)	49,602	2,039
Stryker Corp.	14,300	568
Teva Pharmaceutical Industries, Ltd. -ADR	6,440	318
Thermo Fisher Scientific, Inc. (Æ)	42,333	1,726
WellPoint, Inc. (Æ)	12,406	631
Wyeth	81,924	3,719

		37,332


Materials and Processing - 5.5%
Air Products & Chemicals, Inc.	11,200	723
Alcoa, Inc. (Ñ)	40,710	420
Archer-Daniels-Midland Co.	18,220	488


Multi-Style Equity Fund		5

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares		Market Value $

Ball Corp.	16,000		723
Barrick Gold Corp.	31,725		1,064
Bunge, Ltd.	4,200		253
Cabot Corp.	29,300		369
Celanese Corp. Class A	35,500		843
Cliffs Natural Resources, Inc.	7,700		188
Cytec Industries, Inc.	5,300		99
Domtar Corp. (Æ)(Ñ)	3,250		54
Dow Chemical Co. (The)	40,300		650
EI Du Pont de Nemours & Co.	48,950		1,254
Freeport-McMoRan Copper & Gold, Inc. Class B	16,220	��	813
Masco Corp. (Ñ)	36,000		345
Monsanto Co.	30,478		2,266
Newmont Mining Corp.	68,414		2,796
OM Group, Inc. (Æ)(Ñ)	4,000		116
Packaging Corp. of America	13,574		220
Pactiv Corp. (Æ)	3,900		85
Potash Corp. of Saskatchewan, Inc.	2,680		249
PPG Industries, Inc.	13,600		597
RPM International, Inc.	27,150		381
Silgan Holdings, Inc.	4,600		226
Timken Co.	32,500		555
United States Steel Corp. (Ñ)	13,840		495
Vulcan Materials Co.	16,900		728

			17,000


Producer Durables - 9.8%
3M Co.	25,100		1,509
Accenture, Ltd. Class A	19,900		666
AGCO Corp. (Æ)	600		17
Alaska Air Group, Inc. (Æ)	5,900		108
Alcatel-Lucent - ADR (Æ)	98,380		244
AO Smith Corp.	2,500		81
ASML Holding NV (Ñ)	12,700		275
Avery Dennison Corp.	21,100		542
Bucyrus International, Inc. Class A	7,200		206
Burlington Northern Santa Fe Corp.	4,700		346
Caterpillar, Inc. (Ñ)	19,650		649
CH Robinson Worldwide, Inc. (Ñ)	5,340		279
Continental Airlines, Inc. Class B (Æ)	40,902		362
Convergys Corp. (Æ)	3,900		36
CSX Corp.	108,180		3,746
Cummins, Inc.	30,780		1,084
Deere & Co.	8,900		356
Deluxe Corp.	5,300		68
Emerson Electric Co.	16,000		518
Fluor Corp. (Ñ)	18,000		923
Gardner Denver, Inc. (Æ)	1,000		25
General Dynamics Corp.	14,617		810
General Electric Co.	86,200		1,010
Honeywell International, Inc.	82,798		2,600
JetBlue Airways Corp. (Æ)(Ñ)	11,800		50
Joy Global, Inc.	4,540		162
KBR, Inc.	6,400		118
L-3 Communications Holdings, Inc.	3,300		229
Lexmark International, Inc. Class A (Æ)	14,500		230
Lockheed Martin Corp.	34,734		2,801


	Principal Amount ($) or Shares	Market Value $
Manitowoc Co., Inc. (The) (Ñ)	20,200	106
Manpower, Inc.	6,600	279
Nokia OYJ - ADR (Ñ)	60,900	888
Northrop Grumman Corp.	14,700	672
Pall Corp.	16,400	436
Pitney Bowes, Inc.	30,500	669
Republic Services, Inc. Class A	24,000	586
Robert Half International, Inc. (Ñ)	11,720	277
Rockwell Automation, Inc.	12,300	395
RR Donnelley & Sons Co.	37,600	437
Ryder System, Inc.	8,600	240
SPX Corp.	8,000	392
Steelcase, Inc. Class A (Ñ)	1,600	9
Sunpower Corp. (Æ)(Ñ)	24,061	576
Teleflex, Inc.	13,200	592
Tutor Perini Corp. (Æ)(Ñ)	6,800	118
Tyco International, Ltd.	21,500	559
Union Pacific Corp.	8,574	446
United Parcel Service, Inc. Class B	15,300	765
United Technologies Corp.	19,600	1,018
Watson Wyatt Worldwide, Inc. Class A	1,600	60
Xerox Corp.	99,300	643

		30,213


Technology - 18.4%
Activision Blizzard, Inc. (Æ)	76,920	971
Adobe Systems, Inc. (Æ)	9,840	278
Amphenol Corp. Class A	47,776	1,512
Apple, Inc. (Æ)	44,231	6,300
Applied Materials, Inc.	120,880	1,326
Arris Group, Inc. (Æ)	15,200	185
Avnet, Inc. (Æ)	11,300	238
Broadcom Corp. Class A (Æ)(Ñ)	64,069	1,588
Cisco Systems, Inc. (Æ)	178,616	3,329
Computer Sciences Corp. (Æ)	3,000	133
Corning, Inc.	38,480	618
Data Domain, Inc. (Æ)	4,189	140
Dell, Inc. (Æ)	63,400	870
F5 Networks, Inc. (Æ)(Ñ)	10,510	364
Google, Inc. Class A (Æ)(Ñ)	13,242	5,583
Hewlett-Packard Co.	138,247	5,343
Ingram Micro, Inc. Class A (Æ)	8,900	156
Intel Corp.	198,420	3,284
International Business Machines Corp.	25,231	2,635
International Game Technology (Ñ)	10,810	172
Jabil Circuit, Inc.	80,700	599
Juniper Networks, Inc. (Æ)(Ñ)	99,336	2,344
Lam Research Corp. (Æ)(Ñ)	18,650	485
Marvell Technology Group, Ltd. (Æ)	55,232	643
Maxim Integrated Products, Inc.	59,400	932
McAfee, Inc. (Æ)	6,080	256
Microsoft Corp.	113,250	2,692
Motorola, Inc.	48,700	323
Oracle Corp.	27,900	598
QUALCOMM, Inc.	151,126	6,831
Research In Motion, Ltd. (Æ)	37,641	2,674
SAIC, Inc. (Æ)	12,700	236


6		Multi-Style Equity Fund

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Salesforce.com, Inc. (Æ)(Ñ)	5,820	222
Seagate Technology, Inc. (Æ)(ß)	2,300	—
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR	55,300	520
Tellabs, Inc. (Æ)	41,100	235
Texas Instruments, Inc.	65,300	1,391
Xilinx, Inc. (Ñ)	24,820	508

		56,514


Utilities - 2.6%
Ameren Corp. (Ñ)	10,400	259
American Electric Power Co., Inc.	12,300	355
American Water Works Co., Inc.	21,500	411
AT&T, Inc.	31,900	792
Atmos Energy Corp.	5,700	143
Avista Corp.	2,500	45
BCE, Inc.	32,050	662
China Mobile, Ltd. - ADR	5,700	286
Clearwire Corp. (Æ)(Ñ)	2,400	13
DTE Energy Co.	9,600	307
Duke Energy Corp.	21,700	317
Embarq Corp.	6,600	278
Frontier Communications Corp.	65,500	468
Millicom International Cellular SA (Æ)(Ñ)	2,930	165
Mirant Corp. (Æ)	11,400	179
NiSource, Inc.	23,500	274
NRG Energy, Inc. (Æ)	22,731	590
Pepco Holdings, Inc.	14,000	188
Pinnacle West Capital Corp.	9,600	289
Progress Energy, Inc. - CVO (ß)(Æ)	1,300	—
Qwest Communications International, Inc. (Ñ)	20,000	83
Southwest Gas Corp.	2,900	64


	Principal Amount ($) or Shares	Market Value $
Sprint Nextel Corp. (Æ)	96,863	466
US Cellular Corp. (Æ)	900	35
Veolia Environnement - ADR	14,400	425
Verizon Communications, Inc.	2,700	83
Vodafone Group PLC - ADR (Ñ)	46,850	913

		8,090


Total Common Stocks (cost $294,240)		286,107


Short-Term Investments - 6.5%
Russell Investment Company Russell Money Market Fund (£)	15,775,000	15,775
State Street Euro Commercial Paper (ç)(ž) 0.010% due 07/01/09	4,400	4,400


Total Short-Term Investments (cost $20,175)		20,175


Other Securities - 8.0%
State Street Securities Lending Quality Trust (×)	25,154,968	24,603


Total Other Securities (cost $25,155)		24,603


Total Investments - 107.4% (identified cost $339,570)		330,885

Other Assets and Liabilities, Net - (7.4%)		(22,927	)


Net Assets - 100.0%		307,958

A portion of the portfolio has been fair valued as period end.

See accompanying notes which are an integral part of the financial statements.


Multi-Style Equity Fund		7

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except contracts)


Futures Contracts	Number of Contracts	Notional Amount		Expiration Date	Unrealized Appreciation (Depreciation) $

Long Positions
Russell 1000 Mini Index	34	USD	1,701	09/09	(39)
S&P 500 E-Mini Index (CME)	300	USD	13,733	09/09	(317)
S&P 500 Index (CME)	20	USD	4,578	09/09	(106)
S&P Midcap 400 E-Mini Index (CME)	30	USD	1,730	09/09	(56)


Total Unrealized Appreciation (Depreciation) on Open Futures Contracts					(518)

See accompanying notes which are an integral part of the financial statements.


8		Multi-Style Equity Fund

Russell Investment Funds

Multi-Style Equity Fund

Presentation of Portfolio Holdings — June 30, 2009 (Unaudited)


Portfolio Summary	Market Value $ Level 1			Market Value $ Level 2		Market Value $ Level 3		Total			% of Net Assets

Consumer Discretionary	$	35,451,863		$	—	$	—	$	35,451,863		11.5
Consumer Staples		22,695,537			—		—		22,695,537		7.4
Energy		29,421,498			—		—		29,421,498		9.6
Financial Services		49,389,309			—		—		49,389,309		16.0
Health Care		37,331,966			—		—		37,331,966		12.1
Materials and Processing		17,000,283			—		—		17,000,283		5.5
Producer Durables		30,213,174			—		—		30,213,174		9.8
Technology		56,513,763			—		—		56,513,763		18.4
Utilities		8,090,030			—		—		8,090,030		2.6
Short Term Investments		15,775,000			4,400,000		—		20,175,000		6.5
Other Securities		—			24,602,903		—		24,602,903		8.0


Total Investments		301,882,423			29,002,903		—		330,885,326		107.4

Other Assets and Liabilities, Net											(7.4	)


											100.0


Futures Contracts		(518,246	)		—		—		(518,246	)	(0.2	)

Total Other Financial Instruments**		(518,246	)		—		—		(518,246	)


Total	$	301,364,177		$	29,002,903	$	—	$	330,367,080

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.

See accompanying notes which are an integral part of the financial statements.


Multi-Style Equity Fund		9

Russell Investment Funds

Aggressive Equity Fund

Shareholder Expense Example — June 30, 2009 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2009	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2009	$	1,044.00	$	1,019.64
Expenses Paid During Period*	$	5.27	$	5.21

Expenses are equal to the Fund’s annualized expense ratio of 1.04% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 181/365 (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

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Common Stocks - 92.4%
Consumer Discretionary - 14.4%
99 Cents Only Stores (Æ)(Ñ)	27,738	377
Aaron’s, Inc. (Ñ)	9,700	289
Advance Auto Parts, Inc. (Ñ)	13,727	570
Aeropostale, Inc. (Æ)(Ñ)	4,800	165
American Eagle Outfitters, Inc. (Ñ)	21,282	302
American Woodmark Corp. (Ñ)	800	19
Arctic Cat, Inc. (Ñ)	1,800	7
Asbury Automotive Group, Inc. (Ñ)	7,300	75
ATC Technology Corp. (Æ)(Ñ)	1,400	20
Bally Technologies, Inc. (Æ)(Ñ)	5,984	179
Bebe Stores, Inc. (Ñ)	35,800	246
Bed Bath & Beyond, Inc. (Æ)(Ñ)	8,360	257
BJ’s Restaurants, Inc. (Æ)(Ñ)	7,400	125
BJ’s Wholesale Club, Inc. (Æ)(Ñ)	6,700	216
Black & Decker Corp. (Ñ)	4,200	120
Blyth, Inc.	1,500	49
Borders Group, Inc. (Æ)(Ñ)	7,300	27
Brightpoint, Inc. (Æ)	5,200	33
Brinker International, Inc. (Ñ)	18,100	308
Brunswick Corp. (Ñ)	23,000	99
Build-A-Bear Workshop, Inc. Class A (Æ)(Ñ)	3,900	17
Cabela’s, Inc. (Æ)(Ñ)	23,300	287
Callaway Golf Co. (Ñ)	300	2
Carter’s, Inc. (Æ)	17,100	421
Charlotte Russe Holding, Inc. (Æ)	14,000	180
Chico’s FAS, Inc. (Æ)(Ñ)	27,900	271
Childrens Place Retail Stores, Inc. (The) (Æ)(Ñ)	2,900	77
Chipotle Mexican Grill, Inc. Class A (Æ)(Ñ)	1,184	95
Chipotle Mexican Grill, Inc. Class B (Æ)	1,314	92
Christopher & Banks Corp. (Ñ)	34,572	232
Churchill Downs, Inc. (Ñ)	3,595	121
CKE Restaurants, Inc. (Ñ)	24,000	204
Columbia Sportswear Co. (Ñ)	9,818	304
Core-Mark Holding Co., Inc. (Æ)	900	23
Corinthian Colleges, Inc. (Æ)(Ñ)	7,600	129
CSS Industries, Inc.	300	6
DeVry, Inc. (Ñ)	8,643	433
DG FastChannel, Inc. (Æ)(Ñ)	12,910	236
Dick’s Sporting Goods, Inc. (Æ)(Ñ)	12,289	211
Dillard’s, Inc. Class A (Ñ)	27,700	255
Dollar Tree, Inc. (Æ)(Ñ)	20,000	842
DR Horton, Inc. (Ñ)	37,700	353
Dress Barn, Inc. (Æ)(Ñ)	11,500	164
DSW, Inc. Class A (Æ)(Ñ)	4,600	45
Elizabeth Arden, Inc. (Æ)(Ñ)	2,000	17
Ethan Allen Interiors, Inc. (Ñ)	14,500	150
Family Dollar Stores, Inc. (Ñ)	9,700	275
Fastenal Co. (Ñ)	6,871	228
Finish Line, Inc. (The) Class A (Ñ)	7,400	55
Foot Locker, Inc.	8,900	93
Fred’s, Inc. Class A (Ñ)	6,900	87
Furniture Brands International, Inc. (Ñ)	7,300	22
Gannett Co., Inc. (Ñ)	50,100	179


	Principal Amount ($) or Shares	Market Value $
Gap, Inc. (The) (Ñ)	11,250	185
Group 1 Automotive, Inc. (Ñ)	19,197	500
Gymboree Corp. (Æ)(Ñ)	7,550	268
Haverty Furniture Cos., Inc. (Æ)(Ñ)	1,700	16
hhgregg, Inc. (Æ)(Ñ)	11,700	177
Hooker Furniture Corp. (Ñ)	900	10
HOT Topic, Inc. (Æ)(Ñ)	6,000	44
Insight Enterprises, Inc. (Æ)	4,600	44
Intersections, Inc. (Æ)(Å)	26,666	124
Isle of Capri Casinos, Inc. (Æ)(Ñ)	17,134	228
ITT Educational Services, Inc. (Æ)(Ñ)	3,599	362
Jarden Corp. (Æ)(Ñ)	10,400	195
Jones Apparel Group, Inc. (Ñ)	22,900	246
Journal Communications, Inc. Class A (Ñ)	8,000	8
Kenneth Cole Productions, Inc. Class A (Ñ)	22,286	157
Leapfrog Enterprises, Inc. Class A (Æ)	2,500	6
Lennar Corp. Class A (Ñ)	41,100	398
Liz Claiborne, Inc. (Ñ)	9,800	28
LKQ Corp. (Æ)(Ñ)	14,283	235
Maidenform Brands, Inc. (Æ)	1,700	20
Meritage Homes Corp. (Æ)(Ñ)	7,400	140
New York & Co., Inc. (Æ)(Ñ)	4,000	12
O’Reilly Automotive, Inc. (Æ)(Ñ)	5,674	216
Pacific Sunwear of California, Inc. (Æ)	16,900	57
Papa John’s International, Inc. (Æ)(Ñ)	12,200	302
PC Connection, Inc. (Æ)(Ñ)	2,000	11
Penn National Gaming, Inc. (Æ)	8,134	237
Perceptron, Inc. (Æ)(Å)	45,969	158
Perry Ellis International, Inc. (Æ)(Ñ)	1,900	14
Polaris Industries, Inc. (Ñ)	7,700	247
Pool Corp. (Ñ)	150	3
Pulte Homes, Inc. (Ñ)	8,200	72
Quiksilver, Inc. (Æ)	18,300	34
RadioShack Corp. (Ñ)	22,800	318
Red Lion Hotels Corp. (Æ)	24,355	117
Rent-A-Center, Inc. Class A (Æ)(Ñ)	28,900	515
Ruby Tuesday, Inc. (Æ)(Ñ)	29,700	198
Scholastic Corp.	3,300	65
Shoe Carnival, Inc. (Æ)	1,400	17
Sina Corp. (Æ)	1,395	41
Skechers U.S.A., Inc. Class A (Æ)(Ñ)	2,100	21
Snap-On, Inc. (Ñ)	7,600	218
Stage Stores, Inc. (Ñ)	13,100	145
Starbucks Corp. (Æ)(Ñ)	12,750	177
Steven Madden, Ltd. (Æ)	6,640	169
Stewart Enterprises, Inc. Class A (Ñ)	60,100	290
Superior Industries International, Inc. (Ñ)	17,640	249
Tenneco, Inc. (Æ)(Ñ)	6,800	72
Texas Roadhouse, Inc. Class A (Æ)(Ñ)	25,250	275
Timberland Co. Class A (Æ)	3,800	50
TRW Automotive Holdings Corp. (Æ)(Ñ)	10,200	115
Tuesday Morning Corp. (Æ)(Ñ)	19,200	65
Tween Brands, Inc. (Æ)(Ñ)	1,400	9
United Stationers, Inc. (Æ)(Ñ)	4,500	157
Valassis Communications, Inc. (Æ)	6,200	38
Wabash National Corp. (Ñ)	2,800	2
Wendy’s/Arby’s Group, Inc. (Ñ)	50,000	200


Aggressive Equity Fund		11

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

WESCO International, Inc. (Æ)	4,400	110
Williams-Sonoma, Inc. (Ñ)	25,887	307

		18,283


Consumer Staples - 3.5%
Alberto-Culver Co. Class B (Ñ)	8,541	217
Alliance One International, Inc. (Æ)(Ñ)	91,200	347
Andersons, Inc. (The) (Ñ)	7,600	228
Casey’s General Stores, Inc. (Ñ)	4,400	113
Chiquita Brands International, Inc. (Æ)(Ñ)	11,300	116
Church & Dwight Co., Inc. (Ñ)	9,138	496
Constellation Brands, Inc. Class A (Æ)	3,700	47
Corn Products International, Inc. (Ñ)	10,900	292
Dean Foods Co. (Æ)(Ñ)	16,300	313
Del Monte Foods Co.	83,900	787
Energizer Holdings, Inc. (Æ)(Ñ)	4,801	251
Fresh Del Monte Produce, Inc. (Æ)	15,000	244
Great Atlantic & Pacific Tea Co. (Æ)(Ñ)	7,200	31
Imperial Sugar Co. (Ñ)	2,400	29
J&J Snack Foods Corp. (Ñ)	1,900	68
Lancaster Colony Corp. (Ñ)	7,600	335
Nash Finch Co. (Ñ)	3,300	89
Omega Protein Corp. (Æ)	500	2
Pantry, Inc. (The) (Æ)	4,400	73
Sanderson Farms, Inc.	1,500	67
Spartan Stores, Inc. (Ñ)	3,500	43
TreeHouse Foods, Inc. (Æ)(Ñ)	6,325	182
Weis Markets, Inc. (Ñ)	3,300	111
Winn-Dixie Stores, Inc. (Æ)(Ñ)	1,000	12

		4,493


Energy - 5.4%
Alon USA Energy, Inc. (Ñ)	2,800	29
Alpha Natural Resources, Inc. (Æ)(Ñ)	9,053	238
Arena Resources, Inc. (Æ)(Ñ)	12,900	411
ATP Oil & Gas Corp. (Æ)(Ñ)	3,200	22
Atwood Oceanics, Inc. (Æ)(Ñ)	6,123	152
Basic Energy Services, Inc. (Æ)(Ñ)	4,500	31
Berry Petroleum Co. Class A (Ñ)	9,700	180
BJ Services Co. (Ñ)	8,807	120
CARBO Ceramics, Inc. (Ñ)	8,300	284
Cimarex Energy Co. (Ñ)	4,790	136
Clayton Williams Energy, Inc. (Æ)	1,400	26
Complete Production Services, Inc. (Æ)	2,600	17
Continental Resources, Inc. (Æ)(Ñ)	6,380	177
Core Laboratories NV (Ñ)	4,597	401
Dawson Geophysical Co. (Æ)(Ñ)	5,426	162
Delek US Holdings, Inc. (Ñ)	4,400	37
EXCO Resources, Inc. (Æ)(Ñ)	30,513	394
Exterran Holdings, Inc. (Æ)	8,400	135
FMC Technologies, Inc. (Æ)(Ñ)	4,573	172
Geokinetics, Inc. (Æ)(Ñ)	12,496	171
GMX Resources, Inc. (Æ)(Ñ)	1,700	18
Goodrich Petroleum Corp. (Æ)(Ñ)	13,130	323
Gulf Island Fabrication, Inc.	2,200	35
Key Energy Services, Inc. (Æ)	5,000	29
Noble Corp.	6,060	183


	Principal Amount ($) or Shares	Market Value $
Oceaneering International, Inc. (Æ)	9,535	431
Oil States International, Inc. (Æ)(Ñ)	7,100	172
Parker Drilling Co. (Æ)(Ñ)	2,300	10
Patterson-UTI Energy, Inc. (Ñ)	38,155	491
Penn Virginia Corp.	21,200	347
Petroleum Development Corp. (Æ)	4,000	63
Petroquest Energy, Inc. (Æ)(Ñ)	6,300	23
Rosetta Resources, Inc. (Æ)	4,500	39
Rowan Cos., Inc. (Ñ)	7,550	146
RPC, Inc. (Ñ)	13,700	114
SandRidge Energy, Inc. (Æ)(Ñ)	5,700	49
Superior Energy Services, Inc. (Æ)	22,120	382
T-3 Energy Services, Inc. (Æ)	3,300	39
Tesoro Corp. (Ñ)	14,500	185
Union Drilling, Inc. (Æ)(Ñ)	1,300	9
Unit Corp. (Æ)(Ñ)	1,400	39
W&T Offshore, Inc. (Ñ)	17,200	167
Western Refining, Inc. (Æ)(Ñ)	9,700	68
Whiting Petroleum Corp. (Æ)(Ñ)	5,300	186

		6,843


Financial Services - 15.6%
Advance America Cash Advance Centers, Inc.	36,200	160
Affiliated Managers Group, Inc. (Æ)(Ñ)	15,293	890
Allied Capital Corp. (Ñ)	31,900	111
Allied World Assurance Co. Holdings, Ltd.	5,400	220
American Capital Agency Corp. (ö)(Ñ)	2,100	48
American Equity Investment Life Holding Co. (Ñ)	32,900	184
American Financial Group, Inc.	9,800	211
Ameriprise Financial, Inc.	8,064	196
Annaly Capital Management, Inc. (ö)(Ñ)	14,267	216
Anworth Mortgage Asset Corp. (ö)	57,800	417
Apartment Investment & Management Co. Class A (ö)(Ñ)	1	—
Apollo Investment Corp. (Ñ)	26,100	157
Arch Capital Group, Ltd. (Æ)(Ñ)	3,900	228
Ares Capital Corp. (Ñ)	50,179	404
Argo Group International Holdings, Ltd. (Æ)	3,800	107
Arthur J Gallagher & Co. (Ñ)	9,300	198
Aspen Insurance Holdings, Ltd.	6,200	138
Asset Acceptance Capital Corp. (Æ)(Ñ)	200	2
Bancfirst Corp. (Ñ)	1,000	35
Banco Latinoamericano de Exportaciones SA Class E	4,800	60
Bancorpsouth, Inc. (Ñ)	4,200	86
Bank of Hawaii Corp. (Ñ)	700	25
BioMed Realty Trust, Inc. (ö)	5,000	51
BOK Financial Corp. (Ñ)	13,625	513
Brandywine Realty Trust (ö)(Ñ)	28,200	210
Brookline Bancorp, Inc. (Ñ)	14,800	138
Calamos Asset Management, Inc. Class A (Ñ)	20,800	293
CapLease, Inc. (ö)(Ñ)	4,100	11
Capstead Mortgage Corp. (ö)(Ñ)	26,700	339


12		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Cash America International, Inc. (Ñ)	7,100	166
CBL & Associates Properties, Inc. (ö)(Ñ)	19,500	105
Cedar Shopping Centers, Inc. (ö)	2,600	12
Central Pacific Financial Corp. (Ñ)	6,500	24
Cigna Corp. (Ñ)	11,101	267
Citizens Republic Bancorp, Inc. (Æ)(Ñ)	20,200	14
City Holding Co. (Ñ)	900	27
Cogdell Spencer, Inc. (ö)	400	2
Cohen & Steers, Inc.	18,700	280
Colonial Properties Trust (ö)(Ñ)	13,900	103
Community Trust Bancorp, Inc. (Ñ)	1,000	27
Crawford & Co. Class B (Æ)(Ñ)	1,600	8
Cullen/Frost Bankers, Inc. (Ñ)	6,860	316
Cybersource Corp. (Æ)(Ñ)	13,893	213
Delphi Financial Group, Inc. Class A	17,035	331
Developers Diversified Realty Corp. (ö)(Ñ)	8,000	39
DiamondRock Hospitality Co. (ö)(Ñ)	18,154	114
Dime Community Bancshares (Ñ)	2,700	25
Duff & Phelps Corp. Class A	3,300	59
Duke Realty Corp. (ö)(Ñ)	23,000	202
DuPont Fabros Technology, Inc. (ö)(Ñ)	32,533	306
EMC Insurance Group, Inc. (Ñ)	900	19
Employers Holdings, Inc. (Ñ)	10,400	141
Endurance Specialty Holdings, Ltd.	5,900	173
Evercore Partners, Inc. Class A (Ñ)	6,200	122
FBL Financial Group, Inc. Class A (Ñ)	1,800	15
FelCor Lodging Trust, Inc. (ö)(Ñ)	11,200	28
Fidelity National Financial, Inc. Class A	14,100	191
First American Corp.	6,100	158
First Community Bancshares, Inc. (Ñ)	400	5
First Financial Bancorp	3,100	23
First Industrial Realty Trust, Inc. (ö)(Ñ)	6,300	27
First Niagara Financial Group, Inc.	29,000	331
First Potomac Realty Trust (ö)	4,400	43
Flushing Financial Corp. (Ñ)	8,200	77
Franklin Street Properties Corp. (ö)(Ñ)	20,208	268
Fulton Financial Corp. (Ñ)	14,500	76
Genworth Financial, Inc. Class A	15,400	108
Global Payments, Inc.	7,874	295
Green Bankshares, Inc. (Ñ)	2,018	9
Hanover Insurance Group, Inc. (The) (Ñ)	3,200	122
Harleysville National Corp.	3,300	15
Hatteras Financial Corp. (ö)(Ñ)	3,600	103
Hercules Technology Growth Capital, Inc.	3,900	33
Hersha Hospitality Trust (ö)(Ñ)	4,400	11
Horace Mann Educators Corp.	20,900	208
Hospitality Properties Trust (ö)	17,700	210
HRPT Properties Trust (ö)(Ñ)	39,400	160
IBERIABANK Corp. (Ñ)	5,100	201
Independent Bank Corp. (Ñ)	3,500	69
Inland Real Estate Corp. (ö)(Ñ)	3,500	24
Invesco, Ltd.	17,718	316
IPC Holdings, Ltd.	4,100	112
iStar Financial, Inc. (ö)(Ñ)	25,000	71
JER Investors Trust, Inc. (Æ)(þ)	1,771	1
Kite Realty Group Trust (ö)(Ñ)	6,700	20
Knight Capital Group, Inc. Class A (Æ)(Ñ)	17,008	290


	Principal Amount ($) or Shares	Market Value $
LaSalle Hotel Properties (ö)(Ñ)	11,900	147
Lazard, Ltd. Class A (Ñ)	9,410	253
Lexington Realty Trust (ö)(Ñ)	21,817	74
Life Partners Holdings, Inc. (Ñ)	300	4
LTC Properties, Inc. (ö)(Ñ)	900	18
Maguire Properties, Inc. (Æ)(ö)(Ñ)	10,500	9
MainSource Financial Group, Inc. (Ñ)	1,100	8
MarketAxess Holdings, Inc. (Æ)	23,417	223
Marshall & Ilsley Corp. (Ñ)	14,000	67
Meadowbrook Insurance Group, Inc.	5,485	36
Medical Properties Trust, Inc. (ö)(Ñ)	9,800	59
Montpelier Re Holdings, Ltd. (Ñ)	3,200	42
Moody’s Corp. (Ñ)	8,516	224
National Financial Partners Corp. (Ñ)	7,400	54
National Penn Bancshares, Inc.	1,800	8
National Retail Properties, Inc. (ö)(Ñ)	100	2
Nelnet, Inc. Class A (Æ)(Ñ)	9,700	132
NewAlliance Bancshares, Inc. (Ñ)	13,100	151
Old National Bancorp (Ñ)	21,400	210
Old Republic International Corp. (Ñ)	15,700	155
OneBeacon Insurance Group, Ltd. Class A	2,800	33
Oriental Financial Group, Inc. (Ñ)	27,607	268
PacWest Bancorp (Ñ)	4,300	57
Parkway Properties, Inc. (ö)(Ñ)	3,400	44
PartnerRe, Ltd. - ADR	3,500	227
PennantPark Investment Corp.	52,680	374
Piper Jaffray Cos. (Æ)(Ñ)	8,987	392
Platinum Underwriters Holdings, Ltd.	6,300	180
PMA Capital Corp. Class A (Æ)	1,700	8
Prosperity Bancshares, Inc. (Ñ)	4,400	131
Provident Financial Services, Inc. (Ñ)	22,300	203
PS Business Parks, Inc. (ö)(Ñ)	2,724	132
RAIT Financial Trust (ö)	8,900	12
Raymond James Financial, Inc. (Ñ)	12,997	224
RenaissanceRe Holdings, Ltd.	500	23
S1 Corp. (Æ)	18,500	128
Sandy Spring Bancorp, Inc. (Ñ)	1,700	25
Santander BanCorp (Æ)(Ñ)	1,900	13
Senior Housing Properties Trust (ö)(Ñ)	6,536	107
StanCorp Financial Group, Inc.	4,800	138
StellarOne Corp. (Ñ)	12,642	164
Sterling Bancorp Ñ)	3,100	26
Sterling Bancshares, Inc. (Ñ)	14,400	91
Sun Bancorp, Inc. (Æ)(Ñ)	1,653	9
Sunstone Hotel Investors, Inc. (ö)	11,499	61
SVB Financial Group (Æ)(Ñ)	12,505	340
SWS Group, Inc.	4,700	66
SY Bancorp, Inc. (Ñ)	900	22
Synovus Financial Corp. (Ñ)	53,200	159
TCF Financial Corp. (Ñ)	11,500	154
Texas Capital Bancshares, Inc. (Æ)(Ñ)	19,042	295
Tower Group, Inc.	14,523	360
U-Store-It Trust (ö)(Ñ)	8,600	42
United America Indemnity, Ltd. Class A (Æ)	3,802	18
United Western Bancorp, Inc.	5,300	50
Universal American Corp. (Æ)(Ñ)	7,500	65


Aggressive Equity Fund		13

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

ViewPoint Financial Group (Ñ)	8,400	128
Waddell & Reed Financial, Inc. Class A (Ñ)	6,800	179
Washington Federal, Inc. (Ñ)	12,700	165
WesBanco, Inc. (Ñ)	2,200	32
Western Alliance Bancorp (Æ)	1,000	7
Whitney Holding Corp. (Ñ)	16,670	153
Wintrust Financial Corp. (Ñ)	1,000	16
WSFS Financial Corp. (Ñ)	500	14
Zenith National Insurance Corp. (Ñ)	10,850	236

		19,810


Health Care - 10.0%
Allscripts-Misys Healthcare Solutions, Inc. (Ñ)	10,049	159
Analogic Corp. (Ñ)	4,726	175
Angiodynamics, Inc. (Æ)	1,800	24
athenahealth, Inc. (Æ)(Ñ)	10,940	405
Centene Corp. (Æ)	9,900	198
Cephalon, Inc. (Æ)(Ñ)	3,400	193
Coventry Health Care, Inc. (Æ)	3,400	64
Cynosure, Inc. Class A (Æ)(Ñ)	24,981	191
DaVita, Inc. (Æ)(Ñ)	3,466	171
Dentsply International, Inc. (Ñ)	7,712	235
Edwards Lifesciences Corp. (Æ)(Ñ)	3,157	215
Endo Pharmaceuticals Holdings, Inc. (Æ)(Ñ)	7,000	126
eResearchTechnology, Inc. (Æ)	30,641	190
Gen-Probe, Inc. (Æ)(Ñ)	9,282	399
Gentiva Health Services, Inc. (Æ)(Ñ)	20,717	341
Harvard Bioscience, Inc. (Æ)(Ñ)	49,156	194
Health Net, Inc. (Æ)	7,300	114
Healthspring, Inc. (Æ)(Ñ)	27,100	294
Henry Schein, Inc. (Æ)	1,641	79
HMS Holdings Corp. (Æ)(Ñ)	10,550	430
Humana, Inc. (Æ)	3,500	113
Icon PLC - ADR (Æ)	7,931	171
Idexx Laboratories, Inc. (Æ)(Ñ)	6,567	303
Illumina, Inc. (Æ)(Ñ)	21,435	835
Invacare Corp.	3,800	67
Kindred Healthcare, Inc. (Æ)(Ñ)	17,234	213
King Pharmaceuticals, Inc. (Æ)(Ñ)	73,525	708
Laboratory Corp. of America Holdings (Æ)(Ñ)	4,018	272
Life Technologies Corp. (Æ)(Ñ)	5,998	250
Lincare Holdings, Inc. (Æ)(Ñ)	14,900	351
Magellan Health Services, Inc. (Æ)	5,200	171
MDS, Inc. (Æ)	8,552	46
Medcath Corp. (Æ)	600	7
Mednax, Inc. (Æ)(Ñ)	6,364	268
Molina Healthcare, Inc. (Æ)(Ñ)	5,200	124
Myriad Pharmaceuticals, Inc. (Æ)	376	2
NuVasive, Inc. (Æ)(Ñ)	5,278	235
Odyssey HealthCare, Inc. (Æ)	14,500	149
Omnicare, Inc. (Ñ)	22,700	585
OSI Systems, Inc. (Æ)(Ñ)	16,887	352
Owens & Minor, Inc. (Ñ)	700	31
Par Pharmaceutical Cos., Inc. (Æ)(Ñ)	15,934	241


	Principal Amount ($) or Shares	Market Value $
Parexel International Corp. (Æ)	8,589	124
Patterson Cos., Inc. (Æ)(Ñ)	7,986	173
PerkinElmer, Inc. (Ñ)	16,626	289
PharMerica Corp. (Æ)(Ñ)	5,000	98
Prestige Brands Holdings, Inc. (Æ)(Ñ)	2,800	17
ResMed, Inc. (Æ)(Ñ)	10,568	431
STERIS Corp. (Ñ)	16,181	422
Sun Healthcare Group, Inc. (Æ)	7,600	64
SXC Health Solutions Corp. (Æ)	14,250	362
Universal Health Services, Inc. Class B (Ñ)	3,100	152
Valeant Pharmaceuticals International (Æ)(Ñ)	11,400	293
VCA Antech, Inc. (Æ)(Ñ)	9,168	245
Watson Pharmaceuticals, Inc. Class B (Æ)(Ñ)	11,700	394

		12,755


Materials and Processing - 6.4%
Airgas, Inc. (Ñ)	9,363	380
Albemarle Corp. (Ñ)	10,533	269
Allegheny Technologies, Inc. (Ñ)	3,395	119
Ashland, Inc.	6,000	168
Buckeye Technologies, Inc. (Æ)	8,200	37
Bway Holding Co. (Æ)	8,999	158
Carpenter Technology Corp.	5,500	114
Clearwater Paper Corp. (Æ)(Ñ)	2,900	73
Comfort Systems USA, Inc.	9,800	100
Commercial Metals Co. (Ñ)	15,550	249
Crown Holdings, Inc. (Æ)(Ñ)	2,900	70
Cytec Industries, Inc.	4,800	89
Domtar Corp. (Æ)(Ñ)	4,191	70
Ecolab, Inc. (Ñ)	8,103	316
Encore Wire Corp. (Ñ)	4,600	98
Foster Wheeler AG (Æ)	15,237	362
General Cable Corp. (Æ)	843	32
Gibraltar Industries, Inc. (Ñ)	6,000	41
Glatfelter	4,000	36
Greif, Inc. Class A	3,300	146
Griffon Corp. (Æ)	5,000	42
HB Fuller Co. (Ñ)	3,300	62
IAMGOLD Corp.	13,155	133
Innophos Holdings, Inc.	2,700	46
Intrepid Potash, Inc. (Æ)(Ñ)	6,840	192
Kaydon Corp. (Ñ)	2,500	81
LB Foster Co. Class A (Æ)(Ñ)	1,100	33
Lubrizol Corp.	5,399	255
Mueller Water Products, Inc. Class A (Ñ)	36,000	135
Olin Corp. (Ñ)	11,600	138
OM Group, Inc. (Æ)(Ñ)	12,281	356
Owens-Illinois, Inc. (Æ)	7,900	221
Pactiv Corp. (Æ)(Ñ)	17,400	378
Pan American Silver Corp. (Æ)	3,051	56
PolyOne Corp. (Æ)(Ñ)	3,100	8
Quaker Chemical Corp.	1,000	13
Quanex Building Products Corp.	13,600	153
Rock-Tenn Co. Class A	9,600	366
RPM International, Inc.	16,500	232


14		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Schnitzer Steel Industries, Inc. Class A (Ñ)	5,830	308
Schulman A, Inc.	12,900	195
Schweitzer-Mauduit International, Inc. (Ñ)	2,700	74
Silgan Holdings, Inc.	4,100	201
Sims Metal Management, Ltd. - ADR	12,815	264
Sonoco Products Co.	7,700	184
Spartech Corp.	2,400	22
Steel Dynamics, Inc. (Ñ)	32,796	483
Symyx Technologies (Æ)	2,500	15
Thompson Creek Metals Co., Inc. (Æ)(Ñ)	15,952	163
Timken Co.	12,400	212
Titanium Metals Corp. (Ñ)	16,464	151
Universal Forest Products, Inc. (Ñ)	3,100	103
US Concrete, Inc. (Æ)(Ñ)	4,200	8
Wausau Paper Corp.	1,600	11

		8,221


Producer Durables - 14.6%
Administaff, Inc. (Ñ)	4,700	109
AGCO Corp. (Æ)(Ñ)	8,800	256
Alaska Air Group, Inc. (Æ)(Ñ)	2,800	51
Albany International Corp. Class A (Ñ)	4,200	48
Alexander & Baldwin, Inc. (Ñ)	16,115	378
AM Castle & Co. (Ñ)	1,308	16
American Commercial Lines, Inc. (Æ)(Ñ)	1,300	20
American Railcar Industries, Inc. (Ñ)	1,900	16
AO Smith Corp. (Ñ)	4,400	143
APAC Customer Services, Inc. (Æ)(Ñ)	18,431	95
Argon ST, Inc. (Æ)	4,300	88
Arkansas Best Corp. (Ñ)	15,113	398
Astec Industries, Inc. (Æ)(Ñ)	4,011	119
Atlas Air Worldwide Holdings, Inc. (Æ)	2,500	58
Baldor Electric Co. (Ñ)	12,500	297
BE Aerospace, Inc. (Æ)(Ñ)	26,834	385
Bucyrus International, Inc. Class A	19,760	564
Celadon Group, Inc. (Æ)	1,000	8
Columbus McKinnon Corp. (Æ)	2,600	33
Copart, Inc. (Æ)(Ñ)	15,616	541
Corporate Executive Board Co. (The) (Ñ)	9,700	201
Crane Co.	2,800	63
Cubic Corp.	7,800	279
Curtiss-Wright Corp. (Ñ)	8,800	262
Deluxe Corp.	15,900	204
Ducommun, Inc. (Ñ)	1,900	36
DXP Enterprises, Inc. (Æ)(Ñ)	1,000	12
Eagle Bulk Shipping, Inc. (Ñ)	13,700	64
Electro Rent Corp.	30,427	289
EMCOR Group, Inc. (Æ)	5,300	107
EnerSys (Æ)(Ñ)	14,940	272
Ennis, Inc. (Ñ)	600	8
EnPro Industries, Inc. (Æ)(Ñ)	3,000	54
Flowserve Corp.	3,700	258
Forward Air Corp. (Ñ)	12,600	269
Franklin Electric Co., Inc. (Ñ)	7,200	187
FreightCar America, Inc. (Ñ)	2,000	34
FTI Consulting, Inc. (Æ)(Ñ)	7,637	387
Gardner Denver, Inc. (Æ)	8,200	206


	Principal Amount ($) or Shares	Market Value $
Genesee & Wyoming, Inc. Class A (Æ)(Ñ)	6,307	167
Geo Group, Inc. (The) (Æ)	12,718	236
Global Sources, Ltd. (Æ)(Ñ)	1,300	9
Goodrich Corp.	3,267	163
Gulfmark Offshore, Inc. (Æ)	900	25
H&E Equipment Services, Inc. (Æ)(Ñ)	3,200	30
Heidrick & Struggles International, Inc. (Ñ)	2,300	42
Herman Miller, Inc.	1,100	17
Hewitt Associates, Inc. Class A (Æ)(Ñ)	14,200	423
IDEX Corp.	7,200	177
Insituform Technologies, Inc. Class A (Æ)(Ñ)	12,712	216
Jacobs Engineering Group, Inc. (Æ)	8,184	344
Joy Global, Inc. (Ñ)	3,339	119
Kaman Corp. Class A (Ñ)	13,200	220
KBR, Inc. (Ñ)	20,874	385
Kennametal, Inc. (Ñ)	7,200	138
Kforce, Inc. (Æ)	3,300	27
Kimball International, Inc. Class B (Ñ)	16,492	103
Kirby Corp. (Æ)(Ñ)	5,548	176
Knight Transportation, Inc. (Ñ)	13,570	225
Layne Christensen Co. (Æ)(Ñ)	8,139	166
Lexmark International, Inc. Class A (Æ)(Ñ)	13,400	212
LTX-Credence Corp. (Æ)(Ñ)	1,732	1
Manitowoc Co., Inc. (The) (Ñ)	16,800	88
McDermott International, Inc. (Æ)	27,270	554
MPS Group, Inc. (Æ)	2,800	21
MTS Systems Corp.	100	2
NACCO Industries, Inc. Class A (Ñ)	3,329	96
Nalco Holding Co.	10,447	176
National Instruments Corp. (Ñ)	8,100	183
Navios Maritime Holdings, Inc. (Ñ)	43,000	182
Navistar International Corp. (Æ)	9,000	392
Nice Systems, Ltd. - ADR (Æ)	19,922	460
Old Dominion Freight Line, Inc. (Æ)	4,557	153
Pacer International, Inc.	5,400	12
PHH Corp. (Æ)(Ñ)	19,462	354
PHI, Inc. (Æ)(Ñ)	14,921	256
Quanta Services, Inc. (Æ)(Ñ)	7,790	180
Republic Airways Holdings, Inc. (Æ)	2,000	13
Republic Services, Inc. Class A	10,054	245
Robbins & Myers, Inc. (Ñ)	14,567	280
RR Donnelley & Sons Co.	6,500	76
Ryder System, Inc. (Ñ)	10,600	296
Sauer-Danfoss, Inc.	4,700	29
Shaw Group, Inc. (The) (Æ)	6,600	181
Skywest, Inc.	8,200	84
Southwest Airlines Co. (Ñ)	15,738	106
Spherion Corp. (Æ)	3,900	16
Standard Register Co. (The) (Ñ)	2,100	7
Steelcase, Inc. Class A (Ñ)	9,100	53
Stericycle, Inc. (Æ)(Ñ)	9,589	494
Teekay Corp. (Ñ)	11,600	244
Teleflex, Inc.	6,740	302
Trinity Industries, Inc. (Ñ)	14,600	199
Triumph Group, Inc. (Ñ)	8,370	335
Tutor Perini Corp. (Æ)(Ñ)	8,600	149


Aggressive Equity Fund		15

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

URS Corp. (Æ)	22,241	1,101
Viad Corp.	1,900	33
Wabtec Corp. (Ñ)	9,611	309
Waste Connections, Inc. (Æ)(Ñ)	13,344	346
Werner Enterprises, Inc. (Ñ)	4,500	82
YRC Worldwide, Inc. (Æ)(Ñ)	11,800	20

		18,545


Technology - 18.0%
3Com Corp. (Æ)	125,500	591
ACI Worldwide, Inc. (Æ)(Ñ)	12,500	174
Acxiom Corp.	16,522	146
Adaptec, Inc. (Æ)	117,064	310
Advanced Analogic Technologies, Inc. (Æ)	31,900	146
Affiliated Computer Services, Inc. Class A (Æ)	14,646	651
Akamai Technologies, Inc. (Æ)(Ñ)	8,200	157
Amkor Technology, Inc. (Æ)(Ñ)	21,300	101
Amphenol Corp. Class A	17,513	554
Ansys, Inc. (Æ)(Ñ)	14,088	439
Ariba, Inc. (Æ)(Ñ)	26,580	262
Arris Group, Inc. (Æ)	7,000	85
Art Technology Group, Inc. (Æ)	53,408	203
Atmel Corp. (Æ)(Ñ)	28,500	106
Avnet, Inc. (Æ)	6,500	137
AVX Corp. (Ñ)	22,800	226
Benchmark Electronics, Inc. (Æ)	14,151	204
Broadcom Corp. Class A (Æ)(Ñ)	17,617	437
Brocade Communications Systems, Inc. (Æ)	23,785	186
Brooks Automation, Inc. (Æ)	3,000	13
Celestica, Inc. (Æ)(Ñ)	21,150	144
Ciber, Inc. (Æ)(Ñ)	43,800	136
Cognex Corp.	21,600	305
Cogo Group, Inc. (Æ)(Ñ)	14,600	87
Cohu, Inc. (Ñ)	17,050	153
CommScope, Inc. (Æ)(Ñ)	6,877	181
Compuware Corp. (Æ)	34,700	238
COMSYS IT Partners, Inc. (Æ)	100	1
Concur Technologies, Inc. (Æ)(Ñ)	14,840	461
Cray, Inc. (Æ)	1,400	11
CTS Corp.	4,700	31
Digital River, Inc. (Æ)(Ñ)	8,897	323
DSP Group, Inc. (Æ)(Ñ)	1,700	11
Earthlink, Inc. (Æ)(Ñ)	53,600	397
Electro Scientific Industries, Inc. (Æ)(Ñ)	39,170	438
Electronic Arts, Inc. (Æ)	14,595	317
Equinix, Inc. (Æ)(Ñ)	11,424	831
Exar Corp. (Æ)(Ñ)	1,800	13
Fairchild Semiconductor International, Inc. Class A (Æ)	3,200	22
Flextronics International, Ltd. (Æ)(Ñ)	81,875	336
Harris Stratex Networks, Inc. Class A (Æ)	6,000	39
Hittite Microwave Corp. (Æ)(Ñ)	8,326	289
Imation Corp.	4,000	30
Informatica Corp. (Æ)(Ñ)	10,820	186
Infospace, Inc. (Æ)	3,700	25
Ingram Micro, Inc. Class A (Æ)	21,200	371
Integrated Device Technology, Inc. (Æ)	14,647	88


	Principal Amount ($) or Shares	Market Value $
Internap Network Services Corp. (Æ)(Ñ)	3,600	13
International Rectifier Corp. (Æ)(Ñ)	22,333	331
Intersil Corp. Class A (Ñ)	20,273	255
Jabil Circuit, Inc.	48,200	358
Lam Research Corp. (Æ)(Ñ)	11,329	295
Macrovision Solutions Corp. (Æ)(Ñ)	24,780	540
MasTec, Inc. (Æ)(Ñ)	8,600	101
Micrel, Inc. (Ñ)	21,190	155
Microchip Technology, Inc. (Ñ)	12,947	292
Micros Systems, Inc. (Æ)(Ñ)	15,398	390
Monolithic Power Systems, Inc. (Æ)(Ñ)	20,729	465
Ness Technologies, Inc. (Æ)	2,700	11
Netlogic Microsystems, Inc. (Æ)	7,467	272
Netscout Systems, Inc. (Æ)	15,647	147
Newport Corp. (Æ)(Ñ)	2,300	13
Novatel Wireless, Inc. (Æ)(Ñ)	4,500	41
Novell, Inc. (Æ)	35,900	163
Nuance Communications, Inc. (Æ)(Ñ)	13,588	164
Nvidia Corp. (Æ)(Ñ)	57,925	654
Omnivision Technologies, Inc. (Æ)(Ñ)	5,400	56
Oplink Communications, Inc. (Æ)	12,297	140
Pegasystems, Inc. (Ñ)	17,751	468
Perot Systems Corp. Class A (Æ)(Ñ)	3,700	53
Photronics, Inc. (Æ)	33,400	135
QLogic Corp. (Æ)	10,413	132
Red Hat, Inc. (Æ)	6,800	137
SAIC, Inc. (Æ)	16,717	310
Salesforce.com, Inc. (Æ)(Ñ)	4,510	172
Sanmina-SCI Corp. (Æ)	90,700	40
SBA Communications Corp. Class A (Æ)(Ñ)	9,009	221
Seagate Technology	22,337	234
Silicon Image, Inc. (Æ)	8,300	19
Siliconware Precision Industries Co. - ADR (Ñ)	26,265	163
Skyworks Solutions, Inc. (Æ)(Ñ)	40,800	399
Solera Holdings, Inc. (Æ)	10,920	277
Starent Networks Corp. (Æ)(Ñ)	12,520	306
Sybase, Inc. (Æ)(Ñ)	10,600	332
Syniverse Holdings, Inc. (Æ)(Ñ)	13,530	217
SYNNEX Corp. (Æ)(Ñ)	13,600	340
Synopsys, Inc. (Æ)	8,000	156
Technitrol, Inc.	6,400	41
Tellabs, Inc. (Æ)	42,800	245
TIBCO Software, Inc. (Æ)	39,700	285
Tier Technologies, Inc. Class B (Æ)(Å)	50,456	387
Trimble Navigation, Ltd. (Æ)(Ñ)	5,649	111
TTM Technologies, Inc. (Æ)(Ñ)	5,100	41
United Online, Inc.	24,200	158
Varian Semiconductor Equipment Associates, Inc. (Æ)(Ñ)	13,222	317
Verint Systems, Inc. (Æ)	5,209	54
Vishay Intertechnology, Inc. (Æ)(Ñ)	91,237	619
Western Digital Corp. (Æ)	9,200	244
White Electronic Designs Corp. (Æ)(Å)	91,502	424
Zoran Corp. (Æ)	35,200	384

		22,869


16		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Utilities - 4.5%
AGL Resources, Inc.	5,800	184
Alliant Energy Corp.	5,700	149
Atmos Energy Corp.	23,800	596
Avista Corp. (Ñ)	12,236	218
Black Hills Corp. (Ñ)	9,600	221
California Water Service Group (Ñ)	3,900	144
CenturyTel, Inc. (Ñ)	8,700	267
El Paso Electric Co. (Æ)	3,800	53
Hawaiian Electric Industries, Inc. (Ñ)	2,400	46
Idacorp, Inc. (Ñ)	7,902	207
Integrys Energy Group, Inc. (Ñ)	3,700	111
j2 Global Communications, Inc. (Æ)(Ñ)	8,261	186
Laclede Group, Inc. (The)	6,000	199
Leap Wireless International, Inc. (Æ)(Ñ)	4,842	159
Millicom International Cellular SA (Æ)(Ñ)	3,721	209
Mirant Corp. (Æ)(Ñ)	16,100	253
New Jersey Resources Corp. (Ñ)	11,950	443
Nicor, Inc. (Ñ)	4,400	152
Northwest Natural Gas Co. (Ñ)	800	36
NorthWestern Corp.	5,400	123
Pepco Holdings, Inc.	2,500	34
Pinnacle West Capital Corp.	3,100	94
Portland General Electric Co. (Ñ)	8,800	171
RRI Energy, Inc. (Æ)(Ñ)	4,000	20
Southwest Gas Corp.	15,627	347
Southwest Water Co.	1,300	7
TECO Energy, Inc. (Ñ)	7,600	91
UGI Corp.	32,700	834
UIL Holdings Corp.	1,700	38
US Cellular Corp. (Æ)	2,300	88
USA Mobility, Inc. (Ñ)	3,400	43

		5,723


Total Common Stocks (cost $117,947)		117,542


	Principal Amount ($) or Shares	Market Value $
Short-Term Investments - 8.0%
Russell Investment Company Russell Money Market Fund (£)	8,357,000	8,357
State Street Euro Commercial Paper (ç)(ž) 0.010% due 07/01/09	1,800	1,800


Total Short-Term Investments (cost $10,157)		10,157

Other Securities - 42.3%
State Street Securities Lending Quality Trust (×)	54,937,562	53,732


Total Other Securities (cost $54,938)		53,732


Total Investments - 142.7% (identified cost $183,042)		181,431

Other Assets and Liabilities, Net - (42.7%)		(54,303	)


Net Assets - 100.0%		127,128

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.


Aggressive Equity Fund		17

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except contracts)


Futures Contracts	Number of Contracts	Notional Amount		Expiration Date	Unrealized Appreciation (Depreciation) $


Long Positions
Russell 2000 Mini Index (CME)	190	USD	9,637	09/09	(274)


Total Unrealized Appreciation (Depreciation) on Open Futures Contracts					(274)


18		Aggressive Equity Fund

See accompanying notes which are an integral part of the financial statements.

Russell Investment Funds

Aggressive Equity Fund

Presentation of Portfolio Holdings — June 30, 2009 (Unaudited)


Portfolio Summary	Market Value $ Level 1			Market Value $ Level 2		Market Value $ Level 3		Total			% of Net Assets


Consumer Discretionary	$	18,282,709		$	—	$	—	$	18,282,709		14.4
Consumer Staples		4,493,206			—		—		4,493,206		3.5
Energy		6,842,600			—		—		6,842,600		5.4
Financial Services		19,810,361			—		620		19,810,981		15.6
Health Care		12,753,809			—		—		12,753,809		10.0
Materials and Processing		8,221,148			—		—		8,221,148		6.4
Producer Durables		18,545,608			—		—		18,545,608		14.6
Technology		22,869,093			—		—		22,869,093		18.0
Utilities		5,722,664			—		—		5,722,664		4.5
Short Term Investments		8,357,000			1,800,000		—		10,157,000		8.0
Other Securities		—			53,731,872		—		53,731,872		42.3


Total Investments		125,898,198			55,531,872		620		181,430,690		142.7

Other Assets and Liabilities, Net											(42.7	)


											100.0


Futures Contracts		(274,374	)		—		—		(274,374	)	(0.2	)

Total Other Financial Instruments**		(274,374	)		—		—		(274,374	)


Total	$	125,623,824		$	55,531,872	$	620	$	181,156,316

See accompanying notes which are an integral part of the financial statements.


Aggressive Equity Fund		19

Russell Investment Funds

Non-U.S. Fund

Shareholder Expense Example — June 30, 2009 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2009	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2009	$	1,048.80	$	1,019.44
Expenses Paid During Period*	$	5.49	$	5.41

Expenses are equal to the Fund’s annualized expense ratio of 1.08% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher.


20		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Common Stocks - 88.8%
Australia - 1.1%
ABC Learning Centres, Ltd. (Æ)	5,058	2
Allco Finance Group, Ltd. (Æ)	99,445	12
CSL, Ltd.	59,552	1,539
National Australia Bank, Ltd.	21,089	380
Newcrest Mining, Ltd.	34,490	845
QBE Insurance Group, Ltd. (Ñ)	14,489	231
Transpacific Industries Group, Ltd.	10,659	15

		3,024


Austria - 0.1%
Erste Group Bank AG	12,382	336


Belgium - 0.8%
Anheuser-Busch InBev NV	57,663	2,088


Bermuda - 1.1%
Esprit Holdings, Ltd.	122,800	684
Jardine Matheson Holdings, Ltd.	62,100	1,699
Li & Fung, Ltd.	240,000	641

		3,024


Brazil - 1.6%
Gafisa SA	64,900	543
Itau Unibanco Holding SA - ADR	75,900	1,202
Petroleo Brasileiro SA - ADR	41,000	1,680
Vale SA Class B	51,000	899

		4,324


Canada - 2.0%
Canadian National Railway Co.	31,190	1,340
EnCana Corp.	13,017	645
Inmet Mining Corp.	18,800	690
Potash Corp. of Saskatchewan, Inc.	14,519	1,351
Suncor Energy, Inc.	23,629	719
Yamana Gold, Inc. (Ñ)	58,080	513

		5,258


China - 0.4%
Industrial & Commercial Bank of China	1,545,000	1,073


Czech Republic - 0.1%
Komercni Banka AS	2,564	354


Denmark - 1.0%
Vestas Wind Systems A/S (Æ)	37,510	2,697


Finland - 0.8%
Nokia OYJ	73,053	1,066
Pohjola Bank PLC Class A	124,000	992

		2,058

France - 10.9%
Accor SA	13,809	549
Air France-KLM	46,400	595


	Principal Amount ($) or Shares	Market Value $
Air Liquide SA (Ñ)	12,167	1,114
Alstom SA	13,459	797
AXA SA (Ñ)	72,918	1,379
BNP Paribas	21,515	1,396
Carrefour SA	35,470	1,517
Danone	12,868	636
GDF Suez	38,599	1,442
L’Oreal SA	9,657	723
Legrand SA	39,689	867
LVMH Moet Hennessy Louis Vuitton SA	28,372	2,172
Pernod-Ricard SA (Ñ)	15,494	978
Rallye SA	37,900	1,005
Sanofi-Aventis SA	48,424	2,848
Schneider Electric SA	24,532	1,876
SCOR SE	34,200	702
Thales SA	23,551	1,054
Total SA	48,923	2,650
UBISOFT Entertainment (Æ)	80,100	1,958
Vivendi (Ñ)	118,305	2,834

		29,092


Germany - 6.9%
Adidas AG	21,780	830
Allianz SE	7,361	681
BASF SE (Ñ)	6,674	266
Bayer AG	26,004	1,396
Bayerische Motoren Werke AG	15,198	574
Beiersdorf AG (Ñ)	6,960	328
Daimler AG	19,905	720
Deutsche Boerse AG (Ñ)	8,130	632
Deutsche Telekom AG	80,100	947
E.ON AG	49,324	1,751
Hochtief AG	6,192	313
Linde AG	23,730	1,951
MAN SE	14,100	867
Merck KGaA	12,630	1,288
Metro AG	11,087	530
MTU Aero Engines Holding AG	32,100	1,172
Muenchener Rueckversicherungs AG	4,100	555
SAP AG	38,600	1,556
Siemens AG	12,499	865
Symrise AG (Ñ)	78,667	1,164

		18,386


Hong Kong - 2.0%
Cheung Kong Holdings, Ltd.	159,310	1,826
CNOOC, Ltd.	900,000	1,108
Denway Motors, Ltd.	2,190,000	872
Hang Lung Properties, Ltd. - ADR	86,000	284
Industrial & Commercial Bank of China Asia, Ltd.	710,000	1,281

		5,371


India - 0.7%
ICICI Bank, Ltd. - ADR	29,915	882
Infosys Technologies, Ltd. - ADR (Ñ)	25,740	947

		1,829


Non-U.S. Fund		21

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Indonesia - 0.0%
Telekomunikasi Indonesia Tbk PT - ADR	1,750	52


Ireland - 0.4%
Covidien PLC	17,060	639
CRH PLC	14,865	341

		980


Israel - 0.6%
Teva Pharmaceutical Industries, Ltd. - ADR	30,666	1,513


Italy - 4.0%
Ansaldo STS SpA (Ñ)	18,758	346
ENI SpA	90,139	2,138
Finmeccanica SpA (Ñ)	84,200	1,188
Intesa Sanpaolo SpA (Æ)	136,285	442
Lottomatica SpA	55,500	1,072
Parmalat SpA	633,400	1,531
Snam Rete Gas SpA	259,700	1,142
Telecom Italia SpA	410,900	569
UniCredit SpA (Æ)	546,400	1,400
Unione di Banche Italiane SCPA	69,800	911

		10,739


Japan - 13.9%
Aeon Credit Service Co., Ltd.	35,900	467
Amada Co., Ltd.	123,000	760
Bank of Yokohama, Ltd. (The)	149,776	798
Canon, Inc.	101,830	3,314
Daikin Industries, Ltd.	19,400	620
Daiwa Securities Group, Inc.	226,750	1,340
Fanuc, Ltd.	17,780	1,419
Hirose Electric Co., Ltd. (Ñ)	3,900	415
Honda Motor Co., Ltd.	19,500	534
Hoya Corp.	60,300	1,207
Inpex Holdings, Inc.	156	1,243
Joyo Bank, Ltd. (The)	167,980	854
Kao Corp.	45,000	981
Keyence Corp.	3,516	716
Konica Minolta Holdings, Inc.	20,500	213
Kose Corp. (Ñ)	52,750	1,112
Lawson, Inc.	7,200	316
Marubeni Corp.	280,000	1,237
MID Reit, Inc. Class A (ö)(Ñ)	160	357
Mitsubishi Chemical Holdings Corp.	201,500	850
Mitsubishi Corp.	19,639	361
Mitsubishi UFJ Financial Group, Inc.	48,152	296
Mitsui Sumitomo Insurance Group Holdings, Inc.	24,730	645
Mizuho Financial Group, Inc.	592,800	1,379
Mori Seiki Co., Ltd.	62,400	646
Nintendo Co., Ltd.	2,600	715
Nippon Telegraph & Telephone Corp.	23,200	944
Nipponkoa Insurance Co., Ltd.	202,260	1,173
Nomura Holdings, Inc. (Ñ)	115,728	970
Nomura Research Institute, Ltd.	62,645	1,390
Secom Co., Ltd.	9,800	397


	Principal Amount ($) or Shares	Market Value $
Seven & I Holdings Co., Ltd.	40,100	941
Shin-Etsu Chemical Co., Ltd.	11,700	540
SMC Corp.	6,758	724
Sugi Holdings Co., Ltd. - GDR (Ñ)	39,759	818
Sumitomo Metal Mining Co., Ltd.	49,950	702
Sumitomo Realty & Development Co., Ltd.	33,000	600
Sumitomo Trust & Banking Co., Ltd. (The)	105,093	566
Suzuki Motor Corp.	51,749	1,157
Takeda Pharmaceutical Co., Ltd.	37,600	1,461
THK Co., Ltd.	26,010	388
Tokyo Electron, Ltd.	6,000	288
Toshiba TEC Corp. (Ñ)	273,779	1,109
United Urban Investment Corp. (ö)	70	300

		37,263


Luxembourg - 0.4%
ArcelorMittal	29,200	959


Malaysia - 0.2%
Sime Darby Berhad	266,956	526


Mexico - 0.9%
America Movil SAB de CV Series L (Ñ)	12,860	498
Cemex SAB de CV - ADR (Æ)	193,908	1,811
Grupo Modelo SAB de CV (Æ)(Ñ)	65,000	231

		2,540


Netherlands - 3.0%
ASML Holding NV	57,188	1,240
Heineken NV (Ñ)	103,848	3,858
Nutreco Holding NV	23,500	917
TNT NV	51,210	998
Wolters Kluwer NV (Ñ)	59,540	1,042

		8,055


Norway - 1.7%
Cermaq ASA (Æ)	101,000	809
DNB NOR ASA (Æ)	105,500	808
StatoilHydro ASA	150,062	2,964

		4,581


Portugal - 0.2%
Energias de Portugal SA	134,542	528


Singapore - 2.4%
CapitaLand, Ltd.	464,000	1,179
DBS Group Holdings, Ltd.	175,980	1,428
Jardine Cycle & Carriage, Ltd.	119,000	1,575
Singapore Airlines, Ltd.	36,000	330
Singapore Telecommunications, Ltd. (Ñ)	427,000	881
United Overseas Bank, Ltd. (Ñ)	99,000	1,000

		6,393


South Africa - 0.3%
Gold Fields, Ltd. - ADR (Ñ)	35,020	422
MTN Group, Ltd.	31,370	482

		904


22		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

South Korea - 0.7%
Hyundai Motor Co.	5,365	311
KB Financial Group, Inc. - ADR	7,428	248
Samsung Electronics Co., Ltd.	3,028	1,402

		1,961


Spain - 2.3%
Banco Bilbao Vizcaya Argentaria SA	76,334	962
Banco Santander SA	156,900	1,893
Gamesa Corp. Tecnologica SA	68,463	1,300
Telefonica SA	86,764	1,967

		6,122


Sweden - 1.1%
Hennes & Mauritz AB Series B Class B	6,052	302
Telefonaktiebolaget LM Ericsson Class B	281,516	2,754

		3,056


Switzerland - 8.9%
ABB, Ltd. (Æ)	38,200	601
Actelion, Ltd. (Æ)	20,229	1,061
Compagnie Financiere Richemont SA Class A (Ñ)	44,653	930
Credit Suisse Group AG	54,615	2,493
Georg Fischer AG (Æ)	3,000	514
Givaudan SA	1,926	1,180
Helvetia Holding AG	4,100	1,088
Julius Baer Holding AG	43,526	1,697
Lonza Group AG	15,210	1,511
Nestle SA	148,691	5,612
Novartis AG	11,575	470
Roche Holding AG	20,192	2,747
Sonova Holding AG	6,138	500
Swiss Reinsurance	10,869	360
Transocean, Ltd. (Æ)	27,530	2,045
UBS AG (Æ)	25,567	313
Zurich Financial Services AG	4,600	814

		23,936


Taiwan - 1.5%
Taiwan Semiconductor Manufacturing Co., Ltd.	434,870	722
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR (Ñ)	348,357	3,278

		4,000


Thailand - 0.2%
Bangkok Bank PCL	153,979	502


United Kingdom - 15.1%
Anglo American PLC	64,140	1,872
Antofagasta PLC (Ñ)	89,520	869
BAE Systems PLC	66,579	372
BG Group PLC	30,818	518
BHP Billiton PLC	16,093	363
BP PLC	226,937	1,796


	Principal Amount ($) or Shares	Market Value $
BP PLC - ADR (Ñ)	29,270	1,395
Brit Insurance Holdings PLC	216,400	675
Burberry Group PLC	74,740	522
Cadbury PLC	128,981	1,102
Dairy Crest Group PLC	138,600	733
Diageo PLC	194,060	2,787
Experian PLC	182,535	1,368
GlaxoSmithKline PLC	111,566	1,965
HSBC Holdings PLC	340,195	2,824
Imperial Tobacco Group PLC	63,300	1,646
Ladbrokes PLC	122,525	373
Lloyds Banking Group PLC	512	1
Reckitt Benckiser Group PLC	67,257	3,065
Royal Dutch Shell PLC Class A	101,585	2,539
Sage Group PLC (The)	406,600	1,194
Scottish & Southern Energy PLC	43,229	812
Smiths Group PLC	54,675	633
Spectris PLC	85,400	776
Standard Chartered PLC (Ñ)	71,389	1,344
Tesco PLC	195,389	1,139
Vodafone Group PLC	1,782,696	3,446
Vodafone Group PLC - ADR (Ñ)	76,350	1,488
William Hill PLC (Ñ)	195,297	636
WPP PLC (Ñ)	319,600	2,126

		40,379


United States - 1.5%
NII Holdings, Inc. (Æ)(Ñ)	14,600	279
Philip Morris International, Inc.	61,490	2,682
Synthes, Inc. (Æ)	11,466	1,110

		4,071


Total Common Stocks (cost $269,349)		237,974


Preferred Stocks - 0.4%
Germany - 0.4%
Henkel AG & Co. KGaA	37,917	1,185


Total Preferred Stocks (cost $1,902)		1,185


Warrants & Rights - 0.0%
Australia - 0.0%
Mirvac Group (Æ) 2009 Rights	6	—


Belgium - 0.0%
Fortis (Æ) 2014 Rights	10	—


Italy - 0.0%
Unione di Banche Italiane SCPA (Æ) 2009 Rights	70	5


Total Warrants & Rights (cost $—)		5


Non-U.S. Fund		23

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Short-Term Investments - 9.3%
United States - 9.3%
Russell Investment Company Russell Money Market Fund (£)	20,801,000	20,801
State Street Euro Commercial Paper (ç)(ž)
0.010% due 07/01/09	4,200	4,200


Total Short-Term Investments (cost $25,001)		25,001


Other Securities - 6.6%
State Street Securities Lending Quality Trust (×)	18,013,672	17,618


Total Other Securities (cost $18,014)		17,618


Total Investments - 105.1% (identified cost $314,266)		281,783

Other Assets and Liabilities, Net - (5.1%)		(13,823	)


Net Assets - 100.0%		267,960

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.


24		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except contracts)


Futures Contracts	Number of Contracts	Notional Amount		Expiration Date	Unrealized Appreciation (Depreciation) $


Long Positions
CAC-40 Index (France)	80	EUR	2,585	07/09	(106)
DAX Index (Germany)	14	EUR	1,718	09/09	(43)
EUR STOXX 50 Index (EMU)	186	EUR	4,545	09/09	(117)
FTSE-100 Index (UK)	82	GBP	3,546	09/09	(140)
TOPIX Index (Japan)	102	JPY	937,308	09/09	54


Total Unrealized Appreciation (Depreciation) on Open Futures Contracts					(352)


Non-U.S. Fund		25

See accompanying notes which are an integral part of the financial statements.

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands


Foreign Currency Exchange Contracts

Amount Sold		Amount Bought		Settlement Date	Unrealized Appreciation (Depreciation) $

USD	21	CHF	23	07/01/09	—
USD	24	CHF	26	07/02/09	—
USD	55	EUR	39	07/01/09	—
USD	143	EUR	101	07/01/09	(1	)
USD	35	EUR	25	07/02/09	—
USD	131	EUR	93	07/02/09	—
USD	134	EUR	96	07/03/09	—
USD	2,025	EUR	1,445	09/16/09	2
USD	2,025	EUR	1,445	09/16/09	2
USD	2,025	EUR	1,445	09/16/09	2
USD	2,025	EUR	1,445	09/16/09	1
USD	2,025	EUR	1,445	09/16/09	2
USD	2,025	EUR	1,445	09/16/09	2
USD	3,196	EUR	2,300	09/16/09	31
USD	321	GBP	200	09/16/09	8
USD	1,041	GBP	633	09/16/09	(1	)
USD	1,041	GBP	633	09/16/09	—
USD	1,041	GBP	633	09/16/09	(1	)
USD	1,041	GBP	633	09/16/09	—
USD	1,041	GBP	633	09/16/09	—
USD	1,041	GBP	633	09/16/09	—
USD	1,205	GBP	750	09/16/09	29
USD	36	HKD	278	07/02/09	—
USD	48	HKD	371	07/02/09	—
USD	18	JPY	1,703	07/01/09	—


Foreign Currency Exchange Contracts
Amount Sold		Amount Bought		Settlement Date	Unrealized Appreciation (Depreciation) $

USD	18	JPY	1,732	07/02/09	—
USD	1,571	JPY	154,167	09/16/09	30
USD	1,571	JPY	154,167	09/16/09	30
USD	1,571	JPY	154,167	09/16/09	30
USD	1,572	JPY	154,167	09/16/09	30
USD	1,572	JPY	154,167	09/16/09	30
USD	1,572	JPY	154,167	09/16/09	30
USD	2,236	JPY	220,000	09/16/09	49
USD	58	SGD	84	07/02/09	—
USD	72	SGD	104	07/02/09	—
CHF	50	USD	46	07/01/09	—
EUR	100	USD	141	09/16/09	—
EUR	300	USD	425	09/16/09	4
EUR	700	USD	979	09/16/09	(3	)
EUR	1,700	USD	2,377	09/16/09	(8	)
GBP	100	USD	164	09/16/09	—
GBP	150	USD	243	09/16/09	(4	)
GBP	200	USD	328	09/16/09	(1	)
GBP	700	USD	1,150	09/16/09	(1	)
JPY	15,000	USD	156	09/16/09	—
JPY	30,000	USD	313	09/16/09	1
JPY	40,000	USD	420	09/16/09	4
JPY	200,000	USD	2,035	09/16/09	(43	)


Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts					254


Amounts unrounded
Industry Diversification	Market Value $ Level 1			Market Value $ Level 2		Market Value $ Level 3		Total			% of Net Assets


Consumer Discretionary	$	—		$	29,085,242	$	2,201	$	29,087,443		10.9
Consumer Staples		2,912,809			30,950,987		—		33,863,796		12.6
Energy		7,929,307			13,512,266		—		21,441,573		8.0
Financial Services		23,132,416			45,857,086		11,219		69,000,721		18.0
Health Care		2,151,787			13,448,751		14,977		15,615,515		5.8
Materials and Processing		5,686,317			22,886,910		—		28,573,227		10.6
Producer Durables		1,882,771			29,663,981		—		31,546,752		11.8
Technology		4,224,757			9,378,586		—		13,603,343		5.1
Utilities		2,316,888			14,910,743		—		17,227,631		6.4
Warrents & Rights		4,769			—		—		4,769		—	*
Short Term Investments		—			4,200,000		—		4,200,000		9.3
Other Securities		—			17,618,334		—		17,618,334		6.6


Total Investments		50,241,821			231,512,886		28,397		281,783,104		105.1

Other Assets and Liabilities, Net											(5.1	)

											100.0


Foreign Currency		(1,547	)		255,661		—		254,114		0.1
Futures Contracts		(352,121	)		—		—		(352,121	)	(0.1	)

Total Other Financial Instruments**		(353,668	)		255,661		—		(98,007	)


Total	$	49,888,153		$	231,768,547	$	28,397	$	281,685,097

Less than .05% of net assets.

See accompanying notes which are an integral part of the financial statements.


26		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands


Geographic Diversification	% of Net Assets		Market Value $


Africa	0.3		904
Asia	9.2		24,731
Europe	43.0		115,157
Japan	13.9		37,263
Latin America	3.6		9,888
Middle East	0.6		1,513
Other Regions	12.8		34,330
United Kingdom	15.1		40,379
Other Securities	6.6		17,618


Total Investments	105.1		281,783
Other Assets and Liabilities, Net	(5.1	)	(13,823	)


Net Assets	100.0		267,960

Presentation of Portfolio Holdings — June 30, 2009 (Unaudited)


Categories	% of Net Assets


Australia	1.1
Austria	0.1
Belgium	0.8
Bermuda	1.1
Brazil	1.6
Canada	2.0
China	0.4
Czech Republic	0.1
Denmark	1.0
Finland	0.8
France	10.9
Germany	6.9
Hong Kong	2.0
India	0.7
Indonesia	—	*
Ireland	0.4
Israel	0.6
Italy	4.0
Japan	13.9
Luxembourg	0.4
Malaysia	0.2
Mexico	0.9
Netherlands	3.0
Norway	1.7


Categories	% of Net Assets


Portugal	0.2
Singapore	2.4
South Africa	0.3
South Korea	0.7
Spain	2.3
Sweden	1.1
Switzerland	8.9
Taiwan	1.5
Thailand	0.2
United Kingdom	15.1
United States	1.5
Preferred Stocks	0.4
Warrants & Rights	—	*
Short-Term Investments	9.3
Other Securities	6.6


Total Investments	105.1
Other Assets and Liabilities, Net	(5.1	)

	100.0


Futures Contracts	(0.1	)
Foreign Currency Exchange Contracts	0.1

*	Less than .05% of net assets.

See accompanying notes which are an integral part of the financial statements.


Non-U.S. Fund		27

Russell Investment Funds

Core Bond Fund

Shareholder Expense Example — June 30, 2009 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2009	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2009	$	1,059.60	$	1,021.42
Expenses Paid During Period*	$	3.47	$	3.41

Expenses are equal to the Fund’s annualized expense ratio of 0.68% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher.


28		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Long-Term Investments - 112.6%
Asset-Backed Securities - 4.5%
Access Group, Inc. (Ê) Series 2008-1 Class A 2.392% due 10/27/25	871	867
Accredited Mortgage Loan Trust (Ê) Series 2004-2 Class A2 0.614% due 07/25/34	34	15
ACE Securities Corp. (Ê) Series 2003-OP1 Class M2 1.814% due 12/25/33	29	18
Series 2005-SD3 Class A 0.714% due 08/25/45	153	124
Aegis Asset Backed Securities Trust (Ê) Series 2003-3 Class M2 2.789% due 01/25/34	110	55
American Express Credit Account Master Trust (Ê)(Þ) Series 2004-C Class C 0.819% due 02/15/12	32	32
Ameriquest Mortgage Securities, Inc. (Ê) Series 2002-D Class M1 4.064% due 02/25/33	90	30
ARES CLO Funds (Ê)(Å) Series 2005-10A Class A3 0.853% due 09/18/17	730	603
Armstrong Loan Funding, Ltd. (Ê)(Å) Series 2008-1A Class A 1.578% due 08/01/16	840	736
Bank of America Credit Card Trust (Ê) Series 2008-A1 Class A1 0.899% due 04/15/13	200	198
Bayview Financial Acquisition Trust Series 2006-A Class 1A3 5.865% due 02/28/41	190	80
Centex Home Equity (Ê) Series 2006-A Class AV4 0.564% due 06/25/36	700	263
CIT Mortgage Loan Trust (Ê) Series 2007-1 Class 2A1 (Å) 1.314% due 10/25/37	261	195
Series 2007-1 Class 2A2 1.564% due 10/25/37	130	37
Series 2007-1 Class 2A3 (Å) 1.764% due 10/25/37	180	49
Citigroup Mortgage Loan Trust, Inc. (Ê) Series 2006-WFH Class A2 0.414% due 10/25/36	563	528
Series 2007-AMC Class A2A 0.374% due 05/25/37	376	302
Countrywide Asset-Backed Certificates Series 2004-AB2 Class M3 (Ê) 0.914% due 05/25/36	95	4
Series 2004-BC1 Class M1 (Ê) 0.814% due 02/25/34	95	52
Series 2006-11 Class 1AF4 6.300% due 09/25/46	170	58


	Principal Amount ($) or Shares	Market Value $
Countrywide Home Equity Loan Trust (Ê) Series 2006-HW Class 2A1B 0.469% due 11/15/36	467	168
First Franklin Mortgage Loan Asset Backed Certificates (Ê) Series 2006-FF1 Class A3 0.364% due 11/25/36	76	72
Series 2007-FF1 Class A2B 0.404% due 01/25/38	1,000	341
GMAC Mortgage Corp. Loan Trust Series 2007-HE3 Class 1A1 7.000% due 09/25/37	65	29
Series 2007-HE3 Class 2A1 7.000% due 09/25/37	72	24
GSAA Trust (Ê) Series 2006-2 Class 2A3 0.584% due 12/25/35	320	273
Series 2006-4 Class 1A2 5.916% due 03/25/36	207	28
Series 2006-4 Class 3A1 6.096% due 03/25/36	1,431	757
GSAMP Trust (Ê) Series 2003-HE2 Class M1 0.964% due 08/25/33	61	39
Series 2004-SEA Class A2A 0.604% due 03/25/34	14	14
HFC Home Equity Loan Asset Backed Certificates (Ê) Series 2005-1 Class A 0.605% due 01/20/34	191	132
Series 2006-4 Class A3V 0.465% due 03/20/36	800	474
Series 2007-1 Class AS 0.515% due 03/20/36	753	404
Series 2007-3 Class APT 1.515% due 11/20/36	333	218
HSI Asset Securitization Corp. Trust (Ê) Series 2006-HE2 Class 2A1 0.364% due 12/25/36	27	16
Indymac Residential Asset Backed Trust (Ê) Series 2006-H2 Class A 0.458% due 06/28/36	292	123
JP Morgan Mortgage Acquisition Corp. (Ê) Series 2007-CH4 Class A4 0.474% due 05/25/37	1,000	308
Lehman XS Trust (Ê) Series 2005-1 Class 2A2 1.814% due 07/25/35	70	39
Series 2005-5N Class 3A1A 0.614% due 11/25/35	410	175
Series 2005-7N Class 1A1A 0.584% due 12/25/35	448	210
Series 2006-16N Class A1A 0.394% due 11/25/46	86	72
Series 2006-16N Class A4A 0.504% due 11/25/46	710	286


Core Bond Fund		29

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Series 2006-2N Class 1A2 0.654% due 02/25/46	197	42
Long Beach Mortgage Loan Trust (Ê) Series 2004-4 Class 1A1 0.594% due 10/25/34	5	3
Series 2006-9 Class 2A1 0.374% due 10/25/36	97	91
Master Asset Backed Securities Trust (Ê) Series 2003-WMC Class M2 2.789% due 08/25/33	57	17
Morgan Stanley ABS Capital I (Ê) Series 2003-NC8 Class M3 3.464% due 09/25/33	29	3
Series 2006-HE7 Class A2A 0.364% due 09/25/36	123	117
Series 2007-HE2 Class A2B 0.404% due 01/25/37	1,043	298
New Century Home Equity Loan Trust (Ê) Series 2004-4 Class M2 0.844% due 02/25/35	215	129
Novastar Home Equity Loan (Ê) Series 2007-1 Class A2A1 0.414% due 03/25/37	334	273
Option One Mortgage Loan Trust (Ê) Series 2003-2 Class M2 2.864% due 04/25/33	38	3
Series 2003-3 Class M3 3.314% due 06/25/33	27	4
Series 2003-4 Class M2 1.964% due 07/25/33	25	7
Park Place Securities, Inc. (Ê) Series 2005-WCW Class M1 0.764% due 09/25/35	210	89
Popular ABS Mortgage Pass-Through Trust Series 2005-6 Class A3 5.680% due 01/25/36	191	163
Renaissance Home Equity Loan Trust Series 2005-1 Class M1 5.357% due 05/25/35	61	18
Series 2005-2 Class AF4 4.934% due 08/25/35	85	48
Series 2006-1 Class AF6 5.746% due 05/25/36	173	104
Residential Asset Mortgage Products, Inc. Series 2003-RS1 Class AI6A 5.980% due 12/25/33	146	84
Series 2003-RS9 Class AI6A 6.110% due 10/25/33	459	263
Series 2006-RZ4 Class A1A (Ê) 0.394% due 10/25/36	98	97
Residential Asset Securities Corp. Series 2003-KS2 Class MI1 4.800% due 04/25/33	155	65
Series 2003-KS2 Class MI3 6.100% due 04/25/33	59	7
Series 2003-KS4 Class AIIB (Ê) 0.894% due 06/25/33	40	17


	Principal Amount ($) or Shares	Market Value $
Series 2006-KS9 Class AI1 (Ê) 0.384% due 11/25/36	21	21
Series 2007-KS2 Class AI1 (Ê) 0.384% due 02/25/37	158	145
SBI Heloc Trust (Ê)(Þ) Series 2006-1A Class 1A2A 0.484% due 08/25/36	40	36
SLM Student Loan Trust (Ê) Series 2007-3 Class A1 1.082% due 10/27/14	238	237
Series 2008-2 Class A1 1.392% due 01/26/15	73	73
Series 2008-7 Class A2 1.592% due 10/25/17	2,800	2,732
Small Business Administration Participation Certificates Series 2005-20G Class 1 4.750% due 07/01/25	758	788
Soundview Home Equity Loan Trust Series 2006-WF1 Class A2 (Ê) 5.589% due 10/25/36	256	193
Structured Asset Investment Loan Trust (Ê) Series 2005-3 Class M2 0.754% due 04/25/35	120	23
Structured Asset Securities Corp. (Ê) Series 2006-BC3 Class A2 0.364% due 10/25/36	61	56
Series 2007-BC3 Class 2A2 0.454% due 05/25/47	920	210

		14,904


Corporate Bonds and Notes - 20.5%
Ace Capital Trust II 9.700% due 04/01/30	175	159
Allied Waste NA, Inc. Series B 7.125% due 05/15/16	90	90
Allstate Life Global Funding Trusts 5.375% due 04/30/13	200	207
Altria Group, Inc. 9.700% due 11/10/18	150	172
American Airlines Pass Through Trust 2009-1A 10.375% due 07/02/19	500	505
American Express Bank FSB Series BKNT 5.500% due 04/16/13	300	294
6.000% due 09/13/17	400	365
American Express Centurion Bank Series BKN1 6.000% due 09/13/17	400	365
American Express Co. 7.000% due 03/19/18	200	194
American Express Travel Related Services Co., Inc. (Ê) 0.508% due 06/01/11	100	88


30		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

American General Finance Corp. 6.900% due 12/15/17	400	217
American International Group, Inc. 4.700% due 10/01/10	20	16
5.850% due 01/16/18	900	476
Americo Life, Inc. (Þ) 7.875% due 05/01/13	75	49
Amgen, Inc. 6.900% due 06/01/38	1,000	1,133
Anheuser-Busch InBev Worldwide, Inc. (Þ) 7.750% due 01/15/19	350	383
ANZ Capital Trust (ƒ)(Þ) 4.484% due 12/31/49	225	221
Appalachian Power Co. Series O 5.650% due 08/15/12	65	69
Arizona Public Service Co. 5.800% due 06/30/14	100	101
6.250% due 08/01/16	150	148
AT&T, Inc. 4.950% due 01/15/13	200	208
5.500% due 02/01/18	200	200
6.300% due 01/15/38	975	942
6.400% due 05/15/38	250	245
BAC Capital Trust XV(Ê) 1.468% due 06/01/56	375	185
Bank of America Corp. 5.625% due 10/14/16	115	104
6.000% due 09/01/17	335	305
5.750% due 12/01/17	290	258
5.650% due 05/01/18	175	155
7.625% due 06/01/19	375	377
Bank of America NA (Ê) Series BKNT 0.909% due 06/15/16	200	149
BankAmerica Capital III (Ê) Series * 1.701% due 01/15/27	350	179
Bear Stearns Cos. LLC (The) 1.507% due 07/19/10 (Ê)	600	600
6.950% due 08/10/12	600	652
7.250% due 02/01/18	645	680
BellSouth Telecommunications, Inc. 7.000% due 12/01/95	245	214
BNP Paribas Capital Trust (ƒ)(Å) 9.003% due 12/29/49	450	381
Boardwalk Pipelines, LP 5.875% due 11/15/16	225	214
Burlington Northern Santa Fe Corp. 6.875% due 12/01/27	25	25
6.750% due 03/15/29	10	10
Capital One Bank USA NA 8.800% due 07/15/19	300	306
Capital One Financial Corp. 7.375% due 05/23/14	448	462
Caterpillar Financial Services Corp. 4.850% due 12/07/12	100	104


	Principal Amount ($) or Shares	Market Value $
Catlin Insurance Co., Ltd. (ƒ)(Å) 7.249% due 12/31/49	100	56
CenterPoint Energy Houston Electric LLC (Ñ) Series J2 5.700% due 03/15/13	110	112
CenterPoint Energy Resources Corp. 6.125% due 11/01/17	50	46
Series B 7.875% due 04/01/13	295	315
Chubb Corp. 6.375% due 03/29/67	175	140
Series 1 6.500% due 05/15/38	50	54
Citigroup Capital XXI 8.300% due 12/21/77	650	507
Citigroup, Inc. 2.125% due 04/30/12 (Ñ)	700	703
5.500% due 08/27/12	200	194
5.625% due 08/27/12	200	187
5.500% due 04/11/13	700	656
5.850% due 07/02/13	100	95
6.500% due 08/19/13	565	549
4.700% due 05/29/15	50	41
5.850% due 08/02/16	55	49
6.000% due 08/15/17	400	349
6.125% due 11/21/17	405	355
8.500% due 05/22/19	450	458
6.125% due 08/25/36	300	223
5.875% due 05/29/37	150	117
6.875% due 03/05/38	75	66
CNA Financial Corp. 6.500% due 08/15/16	125	101
Columbus Southern Power Co. Series C 5.500% due 03/01/13	10	10
Comcast Cable Communications Holdings, Inc. 9.455% due 11/15/22	100	117
Comcast Cable Holdings LLC 9.800% due 02/01/12	180	203
7.875% due 08/01/13	245	279
Comcast Corp. 5.500% due 03/15/11	100	104
Comcast Holdings Corp. 10.625% due 07/15/12	125	146
Commonwealth Edison Co. 6.950% due 07/15/18	50	51
5.900% due 03/15/36	75	72
Series 105 5.400% due 12/15/11	125	131
Community Health Systems, Inc. Series WI 8.875% due 07/15/15	235	230
Continental Airlines, Inc. 9.000% due 07/08/16	250	250
Series 071A 5.983% due 04/19/22	150	124


Core Bond Fund		31

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Series 991A 6.545% due 02/02/19	290	268
Countrywide Financial Corp. Series MTN 5.800% due 06/07/12	100	101
Countrywide Home Loans, Inc. Series MTNL 4.000% due 03/22/11	290	286
COX Communications, Inc. (Þ) 5.875% due 12/01/16	75	74
8.375% due 03/01/39	125	139
Credit Suisse USA, Inc. 5.500% due 08/15/13 (Ñ)	45	47
4.875% due 01/15/15	55	55
CSC Holdings, Inc. Series WI 6.750% due 04/15/12	90	87
CSX Corp. 6.250% due 03/15/18	75	76
DCP Midstream LLC 6.875% due 02/01/11	20	21
Dell, Inc. 4.700% due 04/15/13	400	412
Delta Air Lines, Inc. Series 00A2 7.570% due 11/18/10	205	196
Series 01A2 7.111% due 03/18/13	400	372
DISH DBS Corp. (Ñ) 7.125% due 02/01/16	125	117
Dow Chemical Co. (The) 7.600% due 05/15/14	250	257
DPL, Inc. 6.875% due 09/01/11	193	203
El Paso Corp. 8.050% due 10/15/30	200	166
El Paso Natural Gas Co. 7.500% due 11/15/26	100	99
Energy Transfer Partners, LP 5.950% due 02/01/15	300	302
6.700% due 07/01/18	175	179
Enterprise Products Operating LLC 6.500% due 01/31/19 (Ñ)	100	102
8.375% due 08/01/66	100	80
Equities Corp. 8.125% due 06/01/19	40	43
Express Scripts, Inc. 5.250% due 06/15/12	100	103
6.250% due 06/15/14	100	106
Federal Express Corp. 7.600% due 07/01/97	75	69
Fifth Third Bancorp 8.250% due 03/01/38	1,100	842
FirstEnergy Corp. Series B 6.450% due 11/15/11	280	292
Series C 7.375% due 11/15/31	125	118


	Principal Amount ($) or Shares	Market Value $
Florida Gas Transmission Co. LLC(Þ) 7.900% due 05/15/19	225	247
Frontier Communications Corp. 9.250% due 05/15/11	125	130
General Electric Capital Corp. 0.609% due 12/21/12 (Ê)	1,000	1,003
5.900% due 05/13/14	350	357
5.625% due 05/01/18	230	218
5.875% due 01/14/38	300	237
6.375% due 11/15/67	1,900	1,268
Series EMTN (Ê) 0.915% due 03/20/14	400	343
Series GMTN (Ñ) 5.500% due 04/28/11	220	228
Series MTNA (Ê) 0.889% due 09/15/14	300	255
General Electric Co. 5.250% due 12/06/17	150	147
GMAC LLC 6.875% due 09/15/11	525	451
7.500% due 12/31/13 (Þ)	200	155
Goldman Sachs Group, Inc. (The) 4.750% due 07/15/13	350	350
6.000% due 05/01/14	150	157
6.250% due 09/01/17	600	594
6.150% due 04/01/18	150	146
7.500% due 02/15/19	550	589
6.750% due 10/01/37	800	711
Series MTNB (Ê) 1.501% due 07/22/15	100	86
GrafTech Finance, Inc. 10.250% due 02/15/12	12	11
HBOS PLC (Þ) 6.750% due 05/21/18	825	623
HCA, Inc. 8.500% due 04/15/19 (Þ)	300	294
9.125% due 11/15/14	125	124
Historic TW, Inc. 8.050% due 01/15/16	195	196
Inmarsat Finance II PLC 10.375% due 11/15/12	125	129
Inter-American Development Bank 3.000% due 04/22/14	900	897
International Finance Corp. Series GMTN 3.000% due 04/22/14	900	880
International Game Technology (Ñ) 7.500% due 06/15/19	100	101
International Lease Finance Corp. 4.950% due 02/01/11	100	85
Jackson National Life Fund LLC (Ê) 1.282% due 08/06/11	2,800	2,516
Jersey Central Power & Light Co. 5.625% due 05/01/16	90	88
JP Morgan Chase Capital XIII (Ê) Series M 1.548% due 09/30/34	480	270


32		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

JPMorgan Chase & Co. 2.200% due 06/15/12 (Ñ)	200	201
5.375% due 01/15/14	170	171
6.000% due 01/15/18	200	199
6.300% due 04/23/19	250	251
6.400% due 05/15/38	323	324
Series 1 (ƒ) 7.900% due 04/29/49	840	735
JPMorgan Chase Bank NA Series BKNT 5.875% due 06/13/16	70	67
6.000% due 10/01/17	400	389
KCP&L Greater Missouri Operations Co. 11.875% due 07/01/12	425	470
Kinder Morgan Energy Partners, LP 5.950% due 02/15/18	700	685
Kraft Foods, Inc. 6.125% due 02/01/18	200	207
L-3 Communications Corp. Series B 6.375% due 10/15/15	125	113
Lehman Brothers Holdings, Inc. 5.625% due 01/24/13 (Ø)	200	30
6.200% due 09/26/14	200	29
1.000% due 04/03/49	400	59
1.000% due 12/31/49 (Ø)	600	88
Manufacturers & Traders Trust Co. 5.585% due 12/28/20	84	65
MBNA Corp. 6.125% due 03/01/13	200	203
Merrill Lynch & Co., Inc.
6.050% due 08/15/12	100	100
5.450% due 02/05/13	200	195
6.400% due 08/28/17	325	288
6.875% due 04/25/18	625	578
MetLife, Inc. 6.125% due 12/01/11	205	215
6.400% due 12/15/66	100	71
Series A 6.817% due 08/15/18	200	201
Metropolitan Life Global Funding I (Þ) 5.125% due 06/10/14	200	198
Midamerican Energy Holdings Co. 5.750% due 04/01/18 (Ñ)	125	130
Series WI 6.125% due 04/01/36	125	124
Mirant Mid Atlantic Pass Through Trust A Series A 8.625% due 06/30/12	294	292
Morgan Stanley 3.250% due 12/01/11 (Ñ)	200	207
1.600% due 03/01/13 (Ê)	600	742
6.000% due 05/13/14	440	445
1.557% due 10/18/16 (Ê)	435	352
5.450% due 01/09/17	225	210
6.250% due 08/28/17	100	97
5.950% due 12/28/17	125	120
6.625% due 04/01/18	450	449
7.300% due 05/13/19	100	104


	Principal Amount ($) or Shares	Market Value $
Series GMTN 5.750% due 08/31/12	125	129
1.449% due 01/09/14 (Ê)	425	382
Nevada Power Co. 7.125% due 03/15/19	100	107
Series L 5.875% due 01/15/15	100	102
New Cingular Wireless Services, Inc. 7.875% due 03/01/11	150	162
News America Holdings, Inc. 7.900% due 12/01/95	90	79
8.250% due 10/17/96	20	18
NGPL Pipeco LLC (Þ) 6.514% due 12/15/12	200	210
Nisource Finance Corp. 7.875% due 11/15/10	125	129
10.750% due 03/15/16	100	111
6.400% due 03/15/18	145	133
Norfolk Southern Corp. 7.900% due 05/15/97	415	434
Ohio Power Co. (Ñ)(Þ) Series F 5.500% due 02/15/13	20	21
Oncor Electric Delivery Co. 6.800% due 09/01/18	550	588
Pacific Gas & Electric Co. 6.250% due 03/01/39	125	134
Panhandle Eastern Pipeline Co., LP 8.125% due 06/01/19	450	485
Philip Morris International, Inc. 5.650% due 05/16/18	225	236
6.375% due 05/16/38	100	106
Phoenix Life Insurance Co. (Þ) 7.150% due 12/15/34	150	42
PNC Bank NA Series BKNT 6.875% due 04/01/18	250	247
Progress Energy, Inc. 7.100% due 03/01/11	77	82
5.625% due 01/15/16	40	41
7.050% due 03/15/19 (Ñ)	200	222
Prudential Holdings LLC (Þ) 8.695% due 12/18/23	350	335
Public Service Co. of New Mexico 7.950% due 05/15/18	260	252
Puget Sound Energy, Inc. Series A 6.974% due 06/01/67	100	71
Pulte Homes, Inc. 5.250% due 01/15/14	1,000	870
Qwest Communications International, Inc. Series* 7.250% due 02/15/11	234	227
Qwest Corp. 7.875% due 09/01/11	120	120
7.625% due 06/15/15	100	94
Reckson Operating Partnership, LP 5.150% due 01/15/11	92	85


Core Bond Fund		33

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Reinsurance Group of America, Inc. 6.750% due 12/15/65	75	42
Roche Holdings, Inc. (Þ) 6.000% due 03/01/19	225	240
Sabine Pass LNG, LP 7.250% due 11/30/13	500	424
Simon Property Group, LP 5.600% due 09/01/11	200	202
5.300% due 05/30/13	395	382
6.100% due 05/01/16	130	121
6.125% due 05/30/18	50	46
SLM Corp. Series MTN 5.400% due 10/25/11	100	90
5.125% due 08/27/12	75	64
8.450% due 06/15/18	100	86
Southern Union Co. 7.200% due 11/01/66	100	68
State Street Capital Trust III 8.250% due 03/15/42	200	169
Sun Life Financial Global Funding, LP (Ê)(Þ) 1.416% due 07/06/10	700	679
Swiss Re Capital I, LP (ƒ)(Þ) 6.854% due 05/29/49	225	124
Symetra Financial Corp. (Å) 6.125% due 04/01/16	150	114
Target Corp. (Ñ) 5.125% due 01/15/13	400	424
Tennessee Gas Pipeline Co. 8.000% due 02/01/16	200	209
7.000% due 10/15/28 (Ñ)	50	48
TEPPCO Partners, LP 6.650% due 04/15/18	250	254
Time Warner Cable, Inc. Series WI 5.400% due 07/02/12	300	310
6.550% due 05/01/37	75	72
Time Warner, Inc. 5.875% due 11/15/16	400	394
Union Electric Co. 6.400% due 06/15/17	205	210
Union Pacific Corp. 5.700% due 08/15/18	400	401
UnitedHealth Group, Inc. 5.250% due 03/15/11	95	98
4.875% due 02/15/13	200	202
6.000% due 06/15/17 (Ñ)	35	34
Series WI 6.500% due 06/15/37	45	39
Valero Energy Corp. 6.625% due 06/15/37	225	192
Verizon Wireless Capital LLC (Þ) 3.316% due 05/20/11 (Ê)	400	412
5.250% due 02/01/12	700	738
8.500% due 11/15/18	175	209
Wachovia Capital Trust III (ƒ) 5.800% due 03/29/49	50	30
Wachovia Corp. 5.500% due 05/01/13	450	465


	Principal Amount ($) or Shares	Market Value $
5.625% due 10/15/16	100	96
5.750% due 06/15/17	155	153
5.750% due 02/01/18	500	491
Series* (Ê) 1.379% due 10/28/15	200	157
WEA Finance LLC/WT Finance Aust Pty, Ltd. (Þ) 7.500% due 06/02/14	205	203
Wells Fargo & Co. 1.424% due 03/23/16	400	452
5.625% due 12/11/17	300	295
Series K (ƒ) 7.980% due 03/29/49	3,585	2,976
Whirlpool Corp. 8.000% due 05/01/12	25	26
8.600% due 05/01/14	75	78
Williams Cos., Inc. 7.625% due 07/15/19	300	296
8.750% due 01/15/20 (Þ)	150	156
Williams Cos., Inc. (The) 7.875% due 09/01/21	150	148
Windstream Corp. Series WI 8.625% due 08/01/16	125	120
XTO Energy, Inc. 6.500% due 12/15/18	175	188
ZFS Finance USA Trust I (Þ) 6.150% due 12/15/65	500	385

		67,865


International Debt - 6.2%
ANZ National International, Ltd. (Þ) 6.200% due 07/19/13	600	618
Apidos CDO (Ê)(Å) Series 2007-CA Class A1 1.146% due 05/14/20	500	379
ArcelorMittal Series WI 6.125% due 06/01/18	300	263
Argentina Bonos 7.000% due 10/03/15	550	274
AstraZeneca PLC 5.900% due 09/15/17	100	107
AXA SA (ƒ)(Þ) 6.463% due 12/14/18	100	63
Ballyrock CDO, Ltd. (Ê)(Þ) Series 2005-3A Class A2 1.389% due 07/25/17	—	—
Barclays Bank PLC 5.450% due 09/12/12	1,300	1,355
6.050% due 12/04/17 (Þ)	200	173
Barrick Gold Corp. 6.950% due 04/01/19	135	151
Barrick Gold Financeco LLC (Ñ) 6.125% due 09/15/13	270	290
BAT International Finance PLC (Þ) 9.500% due 11/15/18	150	176


34		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Black Diamond CLO, Ltd. (Ê)(Å) Series 2007-1A Class AD 1.304% due 04/29/19	1,000	748
BNP Paribas (ƒ)(Þ) 5.186% due 06/29/49	300	195
Canadian Natural Resources, Ltd. 5.150% due 02/01/13	100	102
5.700% due 05/15/17	75	76
6.500% due 02/15/37	100	100
Corp. Nacional del Cobre de Chile - CODELCO (Þ) 7.500% due 01/15/19	200	231
Credit Suisse NY 5.000% due 05/15/13	330	337
6.000% due 02/15/18	450	449
Deutsche Bank AG 6.000% due 09/01/17	600	612
Electricite De France (Þ) 5.500% due 01/26/14	200	215
6.500% due 01/26/19	200	219
6.950% due 01/26/39	200	225
Endurance Specialty Holdings, Ltd. 6.150% due 10/15/15	100	83
Enel Finance International SA (Þ) 6.250% due 09/15/17	600	626
European Investment Bank 3.125% due 06/04/14	1,200	1,203
Export Development Canada 3.125% due 04/24/14	400	402
HSBC Holdings PLC 6.500% due 05/02/36	100	98
6.500% due 09/15/37	100	97
Korea Electric Power Corp. (Þ) 5.125% due 04/23/34	60	55
Kreditanstalt fuer Wiederaufbau (Ñ) 4.875% due 06/17/19	1,200	1,243
LeasePlan Corp. NV(Þ) 3.000% due 05/07/12	400	402
MUFG Capital Finance 1, Ltd. (ƒ)(Ñ) 6.346% due 07/29/49	200	175
National Australia Bank, Ltd. (Þ) 5.350% due 06/12/13	800	824
Petroleos Mexicanos (Þ) 8.000% due 05/03/19	320	347
Province of Ontario Canada 4.100% due 06/16/14	600	612
Qtel International Finance, Ltd. (Å) 6.500% due 06/10/14	120	122
Ras Laffan Liquefied Natural Gas Co., Ltd. III (Þ) 5.838% due 09/30/27	250	210
Republic of Peru 7.125% due 03/30/19	180	192
Resona Bank, Ltd. (ƒ)(Þ) 5.850% due 09/29/49	100	76
Resona Preferred Global Securities Cayman, Ltd. (ƒ)(Þ) 7.191% due 12/29/49	325	237


	Principal Amount ($) or Shares	Market Value $
Rogers Communications, Inc. 6.800% due 08/15/18	200	214
Royal Bank of Scotland Group PLC (ƒ) 6.990% due 10/29/49 (Þ)	300	147
Series 1 9.118% due 03/31/49	700	571
Royal Bank of Scotland PLC (The) (Þ) 1.320% due 04/08/11 (Ê)	800	799
3.000% due 12/09/11 (Ñ)	200	204
2.625% due 05/11/12	900	907
Santander Perpetual SA Unipersonal (ƒ)(Þ) 6.671% due 10/29/49	300	222
SMFG Preferred Capital USD 1, Ltd. (ƒ)(Þ) 6.078% due 01/29/49	100	80
Societe Financement de l’Economie Francaise (Þ) 3.375% due 05/05/14	700	702
StatoilHydro ASA 5.250% due 04/15/19	175	180
Sumitomo Mitsui Banking Corp. (ƒ)(Þ) 5.625% due 07/29/49	300	276
Systems 2001 AT LLC (Þ) 7.156% due 12/15/11	65	65
Telecom Italia Capital SA 6.200% due 07/18/11	255	264
7.721% due 06/04/38	200	204
Thomson Reuters Corp. (Ñ) 6.500% due 07/15/18	225	234
TransCapitalInvest, Ltd. for OJSC AK Transneft (Þ) 8.700% due 08/07/18	100	96
Transocean, Inc. 6.800% due 03/15/38	150	160
UBS AG Series DPNT 5.875% due 12/20/17	400	373
5.750% due 04/25/18	100	91
UBS Luxembourg SA for OJSC Vimpel Communications Series REGS 8.250% due 05/23/16	100	84
WEA Finance LLC / WCI Finance LLC (Þ) 5.400% due 10/01/12	125	120
Westfield Capital Corp., Ltd./WT Finance Aust Pty Ltd/WEA Finance LLC (Þ) 5.125% due 11/15/14	125	113
Xstrata Canada Corp. 7.250% due 07/15/12	50	48
6.000% due 10/15/15	45	40

		20,556


Loan Agreements - 0.8%
Adam Aircraft Term Loan (Ø)(Å) 0.000% due 05/01/12	56	6
HCA, Inc. Term Loan A (Ê) 2.348% due 11/18/12	428	388


Core Bond Fund		35

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Kelson Holdings, Inc. Term Loan 3.850% due 03/08/13	1,000	871
NRG Energy, Inc. Term Loan B (Ê) 2.978% due 02/01/13	1,579	1,327

		2,592


Mortgage-Backed Securities - 73.2%
ABN Amro Mortgage Corp. Series 2003-13 Class A3 5.500% due 01/25/34	1,758	1,485
Adjustable Rate Mortgage Trust (Ê) Series 2004-5 Class 2A1 4.987% due 04/25/35	72	49
Series 2005-3 Class 8A2 0.554% due 07/25/35	105	45
American Home Mortgage Assets (Ê) Series 2007-4 Class A2 0.504% due 08/25/37	1,060	414
American Home Mortgage Investment Trust (Ê) Series 2004-4 Class 4A 4.390% due 02/25/45	95	75
Banc of America Alternative Loan Trust Series 2003-2 Class CB2 (Ê) 0.814% due 04/25/33	63	54
Series 2003-10 Class 2A2 (Ê) 0.764% due 12/25/33	166	122
Series 2006-5 Class CB17 6.000% due 06/25/46	187	131
Banc of America Commercial Mortgage, Inc. Series 2004-3 Class A3 4.875% due 06/10/39	22	21
Series 2005-2 Class A4 4.783% due 07/10/43	333	314
Series 2005-3 Class A2 4.501% due 07/10/43	150	147
Series 2005-5 Class A4 5.115% due 10/10/45	500	427
Series 2006-1 Class A4 (Ê) 5.372% due 09/10/45	280	231
Series 2006-2 Class A4 5.929% due 05/10/45	200	167
Banc of America Funding Corp. Series 2005-D Class A1 (Ê) 3.781% due 05/25/35	113	96
Series 2006-3 Class 5A8 5.500% due 03/25/36	475	328
Series 2006-A Class 3A2 (Ê) 5.826% due 02/20/36	155	72
Series 2006-A Class 4A1 (Ê) 5.529% due 02/20/36	405	255
Banc of America Mortgage Securities, Inc. Series 2003-9 Class 1A12 (Ê) 0.764% due 12/25/33	228	212
Series 2004-1 Class 5A1 6.500% due 09/25/33	10	10


	Principal Amount ($) or Shares	Market Value $
Series 2004-2 Class 1A9 (Ê) 0.764% due 03/25/34	137	123
Series 2004-11 Class 2A1 5.750% due 01/25/35	336	290
Series 2005-H Class 2A5 (Ê) 4.803% due 09/25/35	220	121
Series 2005-L Class 3A1 (Ê) 5.458% due 01/25/36	200	170
Series 2006-2 Class A15 6.000% due 07/25/36	182	156
Series 2006-B Class 1A1 (Ê) 6.158% due 11/20/36	102	44
Bear Stearns Adjustable Rate Mortgage Trust (Ê) Series 2003-1 Class 6A1 5.021% due 04/25/33	42	38
Series 2003-8 Class 4A1 5.106% due 01/25/34	84	64
Series 2004-1 Class 21A1 4.271% due 04/25/34	68	58
Series 2004-9 Class 22A1 4.808% due 11/25/34	72	60
Series 2005-2 Class A1 2.900% due 03/25/35	1,098	949
Series 2005-3 Class 2A1 5.084% due 06/25/35	262	166
Bear Stearns Alt-A Trust (Ê) Series 2005-4 Class 23A1 5.362% due 05/25/35	198	128
Series 2005-7 Class 22A1 5.490% due 09/25/35	94	51
Series 2006-4 Class 13A1 0.474% due 08/25/36	719	284
Bear Stearns Alt-A Trust II (Ê) Series 2007-1 Class 1A1 6.094% due 09/25/47	812	367
Bear Stearns Commercial Mortgage Securities Series 2006-PW1 Class A4 5.540% due 09/11/41	1,000	829
Bear Stearns Mortgage Funding Trust (Ê) Series 2006-AR2 Class 1A1 0.514% due 09/25/46	780	290
Series 2006-AR2 Class 2A1 0.544% due 10/25/36	657	245
Chase Mortgage Finance Corp. Series 2003-S8 Class A1 4.500% due 09/25/18	119	116
Series 2006-S4 Class A3 6.000% due 12/25/36	192	158
Series 2006-S4 Class A4 6.000% due 12/25/36	107	97
Series 2007-A1 Class 1A3 (Ê) 4.747% due 02/25/37	489	428
Citigroup Commercial Mortgage Trust (Ê) Series 2006-C4 Class A3 5.917% due 03/15/49	330	278


36		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Citigroup Mortgage Loan Trust, Inc. Series 2005-11 Class A2A 4.700% due 12/25/35	68	54
Series 2007-AR8 Class 2A1A 5.910% due 07/25/37	197	121
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2005-CD1 Class A4 (Ê) 5.399% due 07/15/44	1,340	1,188
Series 2006-CD3 Class A5 5.617% due 10/15/48	190	155
Citimortgage Alternative Loan Trust Series 2006-A3 Class 1A5 6.000% due 07/25/36	121	88
Commercial Mortgage Loan Trust Series 2008-LS1 Class A4B 6.220% due 12/10/49	425	315
Commercial Mortgage Pass Through Certificates Series 2006-C8 Class A4 5.306% due 12/10/46	200	146
Series 2007-C9 Class A4 (Ê) 6.010% due 12/10/49	360	286
Countrywide Alternative Loan Trust Series 2005-1CB Class 2A1 6.000% due 03/25/35	553	356
Series 2005-32T Class A7 (Ê) 0.564% due 08/25/35	103	83
Series 2005-J8 Class 1A3 5.500% due 07/25/35	181	125
Series 2005-J13 Class 2A3 5.500% due 11/25/35	117	89
Series 2006-9T1 Class A7 6.000% due 05/25/36	90	55
Series 2006-43C Class 1A7 6.000% due 02/25/37	218	168
Series 2006-J2 Class A3 6.000% due 04/25/36	137	87
Series 2006-OA1 Class 2A1 (Ê) 0.525% due 03/20/46	551	226
Series 2006-OA1 Class 4A1 (Ê) 0.504% due 08/25/46	603	237
Series 2006-OA1 Class A1 (Ê) 0.495% due 02/20/47	742	288
Series 2007-15C Class A5 5.750% due 07/25/37	799	427
Series 2007-J2 Class 2A1 6.000% due 07/25/37	238	130
Series 2007-OA1 Class A1A (Ê) 2.720% due 04/25/43	950	332
Countrywide Home Loan Mortgage Pass Through Trust Series 2003-8 Class A2 (Ê) 0.814% due 05/25/18	124	103
Series 2003-52 Class A1 (Ê) 5.269% due 02/19/34	150	127
Series 2004-16 Class 1A1 (Ê) 0.714% due 09/25/34	141	61


	Principal Amount ($) or Shares	Market Value $
Series 2004-22 Class A3 4.786% due 11/25/34	190	144
Series 2004-HYB Class 1A1 (Ê) 4.711% due 02/20/35	326	259
Series 2005-1 Class 2A1 (Ê) 0.604% due 03/25/35	1,722	765
Series 2005-3 Class 1A2 (Ê) 0.604% due 04/25/35	26	12
Series 2005-HYB Class 3A2A 5.250% due 02/20/36	62	42
Series 2006-OA5 Class 2A1 (Ê) 0.514% due 04/25/46	687	292
Series 2007-18 Class 2A1 6.500% due 11/25/37	210	150
Series 2007-HY1 Class 1A2 (Ê) 5.676% due 04/25/37	82	20
Credit Suisse First Boston Mortgage Securities Corp. Series 2005-9 Class 2A1 5.500% due 10/25/35	400	293
Credit Suisse Mortgage Capital Certificates Series 2006-8 Class 4A1 6.500% due 10/25/21	680	414
Series 2006-C2 Class A3 (Ê) 5.846% due 03/15/39	100	71
Deutsche ALT-A Securities, Inc. Alternate Loan Trust (Ê) Series 2005-AR1 Class 2A3 4.998% due 08/25/35	465	246
Series 2007-OA1 Class A1 0.464% due 02/25/47	2,673	1,004
Series 2007-OA2 Class A1 2.209% due 04/25/47	1,488	569
DLJ Commercial Mortgage Corp. Series 1999-CG1 Class S (Ê) Interest Only STRIP 1.228% due 03/10/32	373	7
Fannie Mae 5.190% due 2012	204	216
6.000% due 2016	9	10
3.296% due 2017 (Ê)	39	39
5.000% due 2017	381	399
6.000% due 2017	56	60
4.000% due 2018	621	635
4.500% due 2018	1,786	1,854
5.000% due 2018	168	176
5.000% due 2019	856	894
6.000% due 2019	342	364
4.500% due 2020	132	137
5.000% due 2020	551	574
5.500% due 2020	177	186
6.000% due 2020	428	456
5.000% due 2021	953	991
5.500% due 2021	286	299
5.500% due 2022	337	353
5.000% due 2023	5,351	5,577
5.500% due 2023	359	376
6.000% due 2026	788	830


Core Bond Fund		37

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

6.000% due 2027	401	422
6.000% due 2028	26	28
5.500% due 2029	90	94
5.500% due 2032	306	318
6.000% due 2032	386	408
7.000% due 2032	133	144
3.727% due 2033 (Ê)	152	153
4.390% due 2033 (Ê)	64	65
5.000% due 2033	480	491
5.500% due 2033	2,065	2,142
6.000% due 2033	155	164
5.000% due 2034	2,207	2,257
5.500% due 2034	1,418	1,471
5.000% due 2035	1,358	1,387
5.500% due 2035	1,916	1,988
6.000% due 2035	143	150
4.005% due 2036 (Ê)	348	348
5.000% due 2036	2,205	2,252
5.500% due 2036	3,617	3,745
6.000% due 2036	1,799	1,883
6.500% due 2036	96	102
7.000% due 2036	20	22
5.000% due 2037	4,532	4,621
5.500% due 2037	7,542	7,813
5.548% due 2037 (Ê)	243	254
6.000% due 2037	2,901	3,040
6.500% due 2037	1,220	1,297
5.500% due 2038	14,014	14,489
6.000% due 2038	6,990	7,314
5.500% due 2039	1,510	1,561
Series 2003-343 Class 6 Interest Only STRIP 5.000% due 10/01/33	214	32
Series 2003-345 Class 18 Interest Only STRIP 4.500% due 12/01/18	555	52
Series 2003-345 Class 19 Interest Only STRIP 4.500% due 01/01/19	616	57
Series 2005-365 Class 12 Interest Only STRIP 5.500% due 12/01/35	869	115
Series 2006-369 Class 8 Interest Only STRIP 5.500% due 04/01/36	172	26
30 Year TBA (Ï) 4.500%	1,000	998
5.000%	6,180	6,292
5.500%	19,500	20,128
6.000%	25,800	26,961
6.500%	19,000	20,235
Fannie Mae REMICS Series 1999-56 Class Z 7.000% due 12/18/29	83	90
Series 2003-32 Class FH (Ê) 0.714% due 11/25/22	227	224
Series 2003-35 Class FY (Ê) 0.714% due 05/25/18	299	295


	Principal Amount ($) or Shares	Market Value $
Series 2003-78 Class FI (Ê) 0.714% due 01/25/33	228	225
Series 2004-21 Class FL (Ê) 0.664% due 11/25/32	119	117
Series 2005-79 Class FC (Ê) 0.614% due 02/25/22	92	92
Series 2006-48 Class LG (Ê) Zero coupon due 06/25/36	55	47
Series 2008-22 Class FD (Ê) 1.154% due 04/25/48	872	866
Series 2008-56 Class FD (Ê) 1.254% due 07/25/48	907	906
Fannie Mae Whole Loan Series 2003-W1 Class 1A1 6.500% due 12/25/42	34	36
Federal Home Loan Mortgage Corp. Structured Pass Through Securities (Ê) Series 2005-63 Class 1A1 2.639% due 02/25/45	27	26
First Horizon Alternative Mortgage Securities Series 2004-AA3 Class A1 (Ê) 5.292% due 09/25/34	40	27
Series 2006-AA5 Class A2 (Ê) 6.509% due 09/25/36	124	17
Series 2006-FA3 Class A6 6.000% due 07/25/36	162	123
First Horizon Asset Securities, Inc. (Ê) Series 2004-AR6 Class 2A1 4.750% due 12/25/34	32	29
Series 2005-AR5 Class 3A1 5.531% due 10/25/35	84	67
Freddie Mac 6.000% due 2016	18	19
5.000% due 2018	483	505
5.000% due 2019	538	563
5.000% due 2020	989	1,031
5.500% due 2020	565	595
4.751% due 2030 (Ê)	1	1
5.000% due 2033	155	159
4.884% due 2034 (Ê)	66	67
5.000% due 2035	1,699	1,735
5.863% due 2036 (Ê)	89	92
5.920% due 2036 (Ê)	153	160
5.967% due 2036 (Ê)	130	136
5.464% due 2037 (Ê)	111	116
5.500% due 2037	2,589	2,672
5.525% due 2037 (Ê)	384	402
5.687% due 2037 (Ê)	501	524
5.707% due 2037 (Ê)	76	80
5.712% due 2037 (Ê)	199	208
5.736% due 2037 (Ê)	156	163
5.805% due 2037 (Ê)	52	54
5.806% due 2037 (Ê)	163	171
5.888% due 2037 (Ê)	80	84
6.000% due 2037	1,377	1,435
5.500% due 2038	8,166	8,442


38		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

6.000% due 2038	9,423	9,845
5.000% due 2039	1,697	1,727
5.500% due 2039	56	57
6.000% due 2039	123	129
30 Year TBA (Ï)
5.500%	1,000	1,032
6.000%	1,900	1,983
Freddie Mac REMICS
Series 2000-226 Class F (Ê)
0.769% due 11/15/30	14	14
Series 2003-256 Class FJ (Ê)
0.719% due 02/15/33	107	106
Series 2003-262 Class AB
2.900% due 11/15/14	76	77
Series 2004-281 Class DF (Ê)
0.769% due 06/15/23	87	85
Series 2005-294 Class FA (Ê)
0.489% due 03/15/20	163	159
Series 2005-299 Class KF (Ê)(Å)
0.719% due 06/15/35	42	42
Series 2005-301 Class IM
Interest Only STRIP
5.500% due 01/15/31	108	7
Series 2006-313 Class FP (Ê)
Principal Only STRIP (Å)
Zero coupon due 04/15/36	90	82
Series 2006-317 Class XI (Ê)
Principal Only STRIP (Å)
Zero coupon due 10/15/35	46	—
Series 2006-323 Class PA
6.000% due 03/15/26	67	68
Series 2007-330 Class GL (Ê)
23.314% due 04/15/37	40	40
Series 2007-333 Class AF (Ê)
0.469% due 10/15/20	965	945
Series 2007-333 Class BF (Ê)
0.469% due 07/15/19	251	246
Series 2007-333 Class FT (Ê)
0.469% due 08/15/19	500	490
Ginnie Mae I
6.000% due 2029	10	11
6.000% due 2038	279	290
5.500% due 2039	956	990
30 Year TBA (Ï)
4.500%	3,525	3,518
5.500%	410	423
Ginnie Mae II
5.375% due 2026	144	149
4.625% due 2027	10	10
3.750% due 2032	58	59
GMAC Mortgage Corp. Loan Trust (Ê) Series 2004-JR1 Class A6 0.764% due 12/25/33	64	51
Government National Mortgage Association (Ê)
Series 1999-40 Class FE
0.868% due 11/16/29	85	85
Series 2000-29 Class F
0.815% due 09/20/30	17	17


	Principal Amount ($) or Shares	Market Value $
Greenwich Capital Commercial Funding Corp.
Series 2003-C2 Class A2
4.022% due 01/05/36	55	54
Series 2004-GG1 Class A7
5.317% due 06/10/36	465	430
Series 2006-GG7 Class A4 (Ê)
6.115% due 07/10/38	690	566
Series 2007-GG9 Class A4
5.444% due 03/10/39	315	251
GS Mortgage Securities Corp. II
Series 2006-GG6 Class A4
5.553% due 04/10/38	320	264
Series 2006-GG8 Class AAB
5.535% due 11/10/39	200	180
GSR Mortgage Loan Trust Series 2005-AR7 Class 6A1 (Ê) 5.241% due 11/25/35	228	177
Harborview Mortgage Loan Trust
Series 2005-3 Class 2A1A (Ê)
0.553% due 06/19/35	1,563	732
Series 2005-4 Class 3A1
5.143% due 07/19/35	147	85
Series 2005-14 Class 3A1A
5.307% due 12/19/35	81	51
Series 2005-16 Class 3A1A (Ê)
0.563% due 01/19/36	380	158
Indymac Index Mortgage Loan Trust
Series 2005-AR1 Class A1
5.302% due 09/25/35	604	374
Series 2006-AR2 Class A2 (Ê)
0.394% due 11/25/36	63	57
Series 2006-AR3 Class 2A1A (Ê)
0.484% due 01/25/37	686	249
Series 2006-AR9 Class 1A1
5.752% due 06/25/36	742	387
Series 2007-AR5 Class 1A1
5.996% due 05/25/37	784	344
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2001-CIB Class A2
6.244% due 04/15/35	43	43
Series 2004-LN2 Class A1
4.475% due 07/15/41	299	298
Series 2005-LDP Class A3A1
4.871% due 10/15/42	210	192
Series 2005-LDP Class A4
4.918% due 10/15/42	325	276
5.344% due 12/15/44 (Ê)	390	330
Series 2006-CB1 Class A4
5.552% due 05/12/45	220	177
Series 2006-LDP Class A3B
5.447% due 05/15/45	250	207
Series 2006-LDP Class A4
6.065% due 04/15/45 (Ê)	650	552
5.399% due 05/15/45	290	230
Series 2007-CB1 Class A4
5.440% due 06/12/47	1,200	904
5.935% due 02/12/49 (Ê)	340	257


Core Bond Fund		39

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Series 2007-LD1 Class A4
5.882% due 02/15/51	380	285
Series 2007-LDP Class A3
5.420% due 01/15/49	1,525	1,123
JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1 (Ê)
5.012% due 02/25/35	106	93
Series 2005-A5 Class TA1
5.431% due 08/25/35	918	763
Series 2007-A1 Class 2A2 (Ê)
4.741% due 07/25/35	661	570
Series 2007-S3 Class 1A35
6.000% due 07/25/37	1,104	712
LB-UBS Commercial Mortgage Trust
Series 2006-C1 Class A4
5.156% due 02/15/31	1,000	833
Series 2006-C3 Class A4
5.661% due 03/15/39	210	177
Series 2006-C4 Class A4 (Ê)
6.080% due 06/15/38	105	88
Series 2007-C6 Class A4
5.858% due 07/15/40	270	196
Lehman Mortgage Trust
Series 2005-3 Class 1A3
5.500% due 01/25/36	491	352
Series 2006-8 Class 2A1 (Ê)
0.734% due 12/25/36	783	318
Series 2007-8 Class 3A1
7.250% due 09/25/37	887	475
Lehman XS Trust (Ê) Series 2007-7N Class 1A2 0.554% due 06/25/47	900	177
Mastr Alternative Loans Trust
Series 2003-4 Class B1 (Ê)
5.696% due 06/25/33	174	109
Series 2004-10 Class 5A6
5.750% due 09/25/34	170	156
Mastr Asset Securitization Trust (Ê)
Series 2003-7 Class 4A35
0.714% due 09/25/33	143	131
Series 2004-4 Class 2A2
0.764% due 04/25/34	59	54
Mellon Residential Funding Corp. (Ê) Series 2000-TBC Class A1 0.799% due 06/15/30	153	127
Merrill Lynch Floating Trust (Ê)(Þ) Series 2006-1 Class A1 0.389% due 06/15/22	554	388
Merrill Lynch Mortgage Investors, Inc. (Ê) Series 2005-A10 Class A 0.524% due 02/25/36	88	48
Merrill Lynch/Countrywide Commercial Mortgage Trust Series 2007-6 Class A4 5.485% due 03/12/51	100	67
MLCC Mortgage Investors, Inc. (Ê)
Series 2004-HB1 Class A2
1.998% due 04/25/29	29	15


	Principal Amount ($) or Shares	Market Value $
Series 2005-3 Class 5A
0.564% due 11/25/35	55	36
Morgan Stanley Capital I
Series 2005-HQ6 Class A4A
4.989% due 08/13/42	740	632
Series 2005-IQ1 Class AAB
5.178% due 09/15/42	415	401
Series 2006-HQ1 Class A4
5.328% due 11/12/41	130	105
Series 2006-HQ8 Class A4 (Ê)
5.558% due 03/12/44	310	251
Series 2006-HQ9 Class A4
5.731% due 07/12/44	295	242
Series 2007-IQ1 Class A4
5.809% due 12/12/49	320	244
MortgageIT Trust (Ê) Series 2005-AR1 Class 1A1 0.564% due 11/25/35	419	181
Prime Mortgage Trust (Ê) Series 2004-CL1 Class 1A2 0.714% due 02/25/34	29	23
Residential Accredit Loans, Inc.
Series 2004-QS5 Class A6 (Ê)
0.914% due 04/25/34	48	36
Series 2004-QS8 Class A4 (Ê)
0.714% due 06/25/34	223	186
Series 2005-QA8 Class NB3 (Ê) 5.473% due 07/25/35	194	130
Series 2005-QO5 Class A1 (Ê) 2.340% due 01/25/46	2,062	933
Series 2005-QS1 Class 2A3 5.750% due 09/25/35	580	401
Series 2006-QS6 Class 1A13 6.000% due 06/25/36	248	137
Series 2007-QH9 Class A1 (Ê) 6.540% due 11/25/37	942	295
Residential Asset Securitization Trust Series 2003-A15 Class 1A2 (Ê) 0.764% due 02/25/34	244	201
Series 2007-A5 Class 2A3 6.000% due 05/25/37	110	69
Residential Funding Mortgage Securities I Series 2003-S5 Class 1A2 (Ê) 0.764% due 11/25/18	129	128
Series 2003-S14 Class A5 (Ê) 0.714% due 07/25/18	146	104
Series 2003-S20 Class 1A7 (Ê) 0.814% due 12/25/33	25	25
Series 2005-SA4 Class 2A1 5.205% due 09/25/35	585	433
Series 2006-SA4 Class 2A1 6.124% due 11/25/36	377	224
Sequoia Mortgage Trust (Ê) Series 2001-5 Class A 0.663% due 10/19/26	54	41
Small Business Administration Series 2000-P10 Class 1 7.449% due 08/10/10	5	5


40		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Structured Adjustable Rate Mortgage Loan Trust Series 2004-5 Class 3A1 3.766% due 05/25/34	121	97
Series 2004-12 Class 3A2 (Ê) 5.192% due 09/25/34	57	43
Series 2004-16 Class 3A1 (Ê) 5.355% due 11/25/34	213	154
Series 2005-21 Class 7A1 6.007% due 11/25/35	1,137	717
Series 2006-12 Class 2A1 (Ê) 5.883% due 01/25/37	755	380
Structured Asset Mortgage Investments, Inc. (Ê) Series 2005-AR5 Class A3 0.563% due 07/19/35	154	97
Series 2006-AR2 Class A1 0.544% due 02/25/36	518	205
Series 2006-AR8 Class A1A 0.514% due 10/25/36	728	300
Series 2007-AR6 Class A1 2.939% due 08/25/47	922	362
Structured Asset Securities Corp. Series 2004-21X Class 1A3 4.440% due 12/25/34	171	166
Thornburg Mortgage Securities Trust (Ê) Series 2003-2 Class A1 0.994% due 04/25/43	64	52
Series 2006-5 Class A1 0.434% due 08/25/11	607	557
Series 2006-6 Class A1 0.424% due 11/25/46	108	97
Wachovia Bank Commercial Mortgage Trust Series 2005-C21 Class A4 5.384% due 10/15/44	1,000	905
Washington Mutual Alternative Mortgage Pass-Through Certificates Series 2005-4 Class CB11 5.500% due 06/25/35	90	53
Series 2007-OA1 Class 2A (Ê) 2.159% due 12/25/46	689	226
Washington Mutual Mortgage Pass Through Certificates (Ê) Series 2003-S9 Class A2 (Ê) 0.864% due 10/25/33	237	233
Series 2004-AR3 Class A2 3.144% due 06/25/34	125	110
Series 2005-AR1 Class 1A1 4.825% due 10/25/35	216	168
Series 2005-AR1 Class A1A1 0.604% due 10/25/45	33	17
0.574% due 11/25/45	819	396
0.584% due 12/25/45	398	188
Series 2005-AR6 Class B3 (Å) 0.974% due 04/25/45	196	8
Series 2006-AR1 Class 3A1A 2.260% due 09/25/46	703	248


	Principal Amount ($) or Shares		Market Value $
Series 2006-AR2 Class 1A1 5.269% due 03/25/37		682	420
Series 2007-HY3 Class 4B1 5.330% due 03/25/37		124	14
Series 2007-HY4 Class 1A1 5.468% due 04/25/37		138	82
Wells Fargo Mortgage Backed Securities Trust Series 2006-2 Class 2A3 5.500% due 03/25/36		354	317
Series 2006-AR2 Class 2A1 4.950% due 03/25/36		266	188
Series 2007-8 Class 1A16 6.000% due 07/25/37		306	213
Series 2007-10 Class 2A5 6.250% due 07/25/37		142	108

			242,449


Municipal Bonds - 1.0%
Chicago Transit Authority Revenue Bonds 6.899% due 12/01/40		400	428
Los Angeles Unified School District General Obligation Unlimited (µ) 4.500% due 07/01/22		400	384
New York City Municipal Water Finance Authority Revenue Bonds 4.750% due 06/15/37		1,300	1,233
State of California General Obligation Unlimited 7.500% due 04/01/34		100	91
5.650% due 04/01/39 (Ê)		100	98
7.550% due 04/01/39		600	546
State of Louisiana Revenue Bonds (Ê) 3.000% due 05/01/43		400	397
Tennessee Valley Authority Revenue Bonds 5.500% due 07/18/17		200	218

			3,395


Non-US Bonds - 0.5%
Brazilian Government International Bond 12.500% due 01/05/22	BRL	300	169
Federative Republic of Brazil 10.250% due 01/10/28	BRL	1,400	704
Fortis Bank Nederland Holding NV 3.000% due 04/17/12	EUR	200	283
Hellas Telecommunications Luxembourg V (Ê) Series REGS 4.935% due 10/15/12	EUR	125	117
Impress Holdings BV (Ê) Series REGS 5.737% due 09/15/13	EUR	125	153
Societe Financement de l’Economie Francaise 2.125% due 05/20/12	EUR	100	140
UBS AG (Å) Zero coupon due 12/31/2017	EUR	270	56

			1,622


Core Bond Fund		41

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

United States Government Agencies - 2.4%
Fannie Mae 5.000% due 02/13/17	900	982
5.000% due 05/11/17 (Ñ)	600	651
Federal Home Loan Bank (Ñ) Series 467 5.250% due 06/18/14	700	772
Federal Home Loan Mortgage Corp.
1.625% due 04/26/11	800	806
0.926% due 05/04/11 (Ê)	2,430	2,435
0.937% due 08/05/11 (Ê)	800	800
3.000% due 07/28/14 (Ñ)	600	601
5.300% due 12/01/15	600	665
5.000% due 12/14/18	100	95
Series 1 (Ê)
0.888% due 02/01/11	100	100
Freddie Mac 4.875% due 06/13/18	100	108

		8,015


United States Government Treasuries - 3.5%
United States Treasury Principal
Principal Only STRIP
Zero coupon due 05/15/20	600	380
Zero coupon due 08/15/20	1,400	872
Zero coupon due 05/15/21	100	60
Zero coupon due 11/15/21 (Ñ)	1,938	1,124
Zero coupon due 11/15/26	300	137
Zero coupon due 11/15/27 (Ñ)	1,130	495
United States Treasury Inflation Indexed Bonds
2.000% due 07/15/14	1,135	1,161
1.625% due 01/15/15	893	889
2.000% due 01/15/16 (Ñ)	1,464	1,486
2.500% due 07/15/16 (Ñ)	422	443
2.625% due 07/15/17	309	329
2.000% due 01/15/26 (Ñ)	430	421
1.750% due 01/15/28 (Ñ)	3,138	2,961
United States Treasury Notes
1.750% due 01/31/14	425	413
2.750% due 06/30/14	190	191
4.250% due 05/15/39	200	198

		11,560


Total Long-Term Investments (cost $398,561)		372,958


Preferred Stocks - 0.2%
Financial Services - 0.2%
DG Funding Trust (Å)(Æ)	49	422
General Motors Corp.	80,000	209


Total Preferred Stocks (cost $766)		631


	Notional Amount		Market Value $
Options Purchased - 0.2%
(Number of Contracts)
Mortgage-Backed Securities
Fannie Mae TBA Jul 2009 84.00 Put (1)	USD	6,000	—
Swaptions
(Fund Pays/Fund Receives)
USD Three Month LIBOR/USD 3.600% July 2009 0.00 Call (1)		2,300	93
USD Three Month LIBOR/USD 3.450% Aug 2009 0.00 Call (5)		13,900	494

Total Options Purchased (cost $168)			587

	Principal Amount ($) or Shares

Short-Term Investments - 11.5%
American Electric Power Co., Inc. Series C 5.375% due 03/15/10		35	36
Bank of America Corp. (Ê) 1.127% due 11/06/09		100	100
Bank of Scotland PLC (Ê)(Ñ)(Þ) Series MtN 1.153% due 07/17/09		300	300
Bear Stearns Cos. LLC (The) (Ê) 1.392% due 07/16/09		1,200	1,200
BNP Paribas Financial, Inc.
1.000% due 07/07/09 (ç)(ž)		1,125	1,125
1.000% due 08/05/09 (ç)(ž)		1,150	1,150
Citigroup Global Markets Deutschland AG for OAO Gazprom 10.500% due 10/21/09		200	205
Citigroup, Inc. (Ê) 0.631% due 12/28/09		400	396
Continental Airlines, Inc. Series 99A2 7.056% due 09/15/09		300	297
Countrywide Home Loans, Inc.
Series MTNK
5.625% due 07/15/09		175	175
4.125% due 09/15/09		335	336
COX Communications, Inc. 4.625% due 01/15/10		350	352
DnB NOR Bank ASA (Ê)(Þ) 1.209% due 10/13/09		1,000	994
Enterprise Products Operating LLC 4.950% due 06/01/10		125	127
Federal Home Loan Bank Discount Notes (ç)(ž) Zero Coupon due 07/01/09		1,700	1,700
Federal National Mortgage Association Discount Notes (ç)(ž) Zero Coupon due 07/21/09		2,390	2,390


42		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Ford Motor Credit Co. LLC 7.875% due 06/15/10	200	190
General Electric Capital Corp. (Ê)
Series MTN
1.122% due 10/26/09	100	100
1.177% due 01/20/10 (Ê)(Ñ)	200	199
Goldman Sachs Group, Inc. (The) 4.500% due 06/15/10	125	128
HSBC Finance Corp. (Ê)
1.162% due 10/21/09	100	100
0.719% due 03/12/10 (Ñ)	300	295
1.206% due 05/10/10	100	97
KeyBank NA (Ê) Series BKNT 2.906% due 06/02/10	300	291
Korea Development Bank/Republic of Korea (Ê) 1.565% due 04/03/10	900	881
Lehman Brothers Holdings, Inc. (Ø) 2.951% due 05/25/10	200	30
Merrill Lynch & Co., Inc. (Ê) 0.726% due 12/04/09	200	200
Metropolitan Life Global Funding I (Ê)(Þ) 0.894% due 05/17/10	400	397
Morgan Stanley (Ê)
Series MTN
1.221% due 01/15/10	300	298
3.006% due 05/14/10 (Ê)	400	399
Nationwide Life Global Funding I (Ê)(Þ) 1.026% due 05/19/10	1,300	1,205
Russell Investment Company Russell Money Market Fund (£)	20,784,000	20,784
Sprint Nextel Corp. (Ê) 1.001% due 06/28/10	350	330
UBS AG/Stamford Branch (Ê) 1.927% due 05/05/10	700	702
United States Treasury Bills (§)
0.106% due 07/16/09 (ç)(ž)	10	10
0.010% due 08/20/09 (ç)(ž)	165	165
Zero coupon due 09/17/09	300	300


Total Short-Term Investments (cost $38,245)		37,984

Other Securities - 3.7%
State Street Securities Lending Quality Trust (×)	12,536,951	12,262

Total Other Securities (cost $12,537)		12,262

Total Investments - 128.2% (identified cost $450,277)		424,422
Other Assets and Liabilities, Net - (28.2%)		(93,429	)

Net Assets - 100.0%		330,993


Core Bond Fund		43

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except contracts)


Futures Contracts	Number of Contracts	Notional Amount		Expiration Date	Unrealized Appreciation (Depreciation) $


Long Positions
Euribor Futures (Germany)	3	EUR	739	12/09	3
Euribor Futures (Germany)	6	EUR	1,474	03/10	8
Eurodollar Futures (CME)	53	USD	12,864	09/09	297
Eurodollar Futures (CME)	73	USD	17,872	12/09	213
Eurodollar Futures (CME)	18	USD	4,328	03/10	119
Eurodollar Futures (CME)	20	USD	4,911	06/10	12
Eurodollar Futures (CME)	2	USD	484	09/10	6
Eurodollar Futures (CME)	25	USD	6,123	12/10	(17)
Three Month Short Sterling Interest Rate Futures (UK)	1	GBP	119	12/09	6
Three Month Short Sterling Interest Rate Futures (UK)	2	GBP	245	03/10	—
Three Month Short Sterling Interest Rate Futures (UK)	4	GBP	489	06/10	—
Three Month Short Sterling Interest Rate Futures (UK)	4	GBP	488	09/10	(2)
Three Month Short Sterling Interest Rate Futures (UK)	4	GBP	486	12/10	(3)
Three Month Short Sterling Interest Rate Futures (UK)	2	GBP	242	03/11	(3)
United States Treasury 2 Year Notes	50	USD	10,825	09/09	(14)
United States Treasury 5 Year Notes	92	USD	10,694	09/09	(140)
United States Treasury 10 Year Notes	35	USD	4,145	09/09	(76)
United States Treasury 30 Year Bond	48	USD	5,563	09/09	118

Short Positions
Australian 3 Year Bond (Australia)	15	AUD	1,556	09/09	3
Euro-Bobl Futures (Germany)	14	EUR	1,616	09/09	—
Long Gilt Bond (UK)	3	GBP	352	09/09	(3)


Total Unrealized Appreciation (Depreciation) on Open Futures Contracts					527

See accompanying notes which are an integral part of the financial statements.


44		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands


Options Written (Number of Contracts)	Notional Amount $	Market Value $


Swaptions
(Fund Receives/Fund Pays) USD 2.000%/USD Three Month LIBOR Jul 2009 0.00 Put (3)	2,000	(2	)
USD 4.400%/USD Three Month LIBOR Aug 2009 0.00 Put (2)	1,600	(3	)
USD 4.550%/USD Three Month LIBOR Aug 2009 0.00 Put (2)	1,500	(2	)


Total Liability for Options Written (premiums received - $21)		(7	)

See accompanying notes which are an integral part of the financial statements.


Core Bond Fund		45

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands


Foreign Currency Exchange Contracts

Amount Sold		Amount Bought		Settlement Date	Unrealized Appreciation (Depreciation) $

USD	203	AUD	258	07/23/09	5
USD	240	AUD	297	09/16/09	(2	)
USD	995	AUD	1,244	09/16/09	1
USD	201	BRL	412	08/04/09	8
USD	248	BRL	530	08/04/09	25
USD	147	CAD	161	08/04/09	(9	)
USD	145	CAD	161	09/16/09	(6	)
USD	193	CAD	212	09/16/09	(10	)
USD	263	CAD	301	09/16/09	(4	)
USD	242	CHF	259	09/16/09	(3	)
USD	24	GBP	15	07/02/09	1
USD	202	GBP	122	07/02/09	(1	)
USD	283	GBP	170	07/02/09	(3	)
USD	121	GBP	74	09/16/09	1
USD	126	GBP	78	09/16/09	2
USD	129	GBP	77	09/16/09	(2	)
USD	188	GBP	116	09/16/09	3
USD	405	GBP	255	09/16/09	14
USD	51	JPY	4,960	07/02/09	—
USD	107	JPY	10,523	07/16/09	2
USD	52	JPY	4,960	08/04/09	—
USD	244	JPY	23,375	09/16/09	(1	)
USD	461	JPY	44,404	09/16/09	—
USD	97	NOK	617	09/16/09	(1	)
USD	412	NOK	2,672	09/16/09	3
USD	72	NZD	116	09/16/09	3
USD	181	NZD	282	09/16/09	—
USD	208	NZD	330	09/16/09	4
AUD	370	CHF	316	09/16/09	(6	)
AUD	370	CHF	316	09/16/09	1
AUD	157	EUR	88	09/16/09	(4	)
AUD	157	EUR	88	09/16/09	1
AUD	237	EUR	137	09/16/09	2
AUD	237	EUR	137	09/16/09	—
AUD	309	EUR	176	09/16/09	(2	)
AUD	309	EUR	176	09/16/09	1
AUD	92	JPY	7,097	09/16/09	(2	)
AUD	92	JPY	7,097	09/16/09	2
AUD	154	JPY	11,636	09/16/09	(3	)
AUD	154	JPY	11,636	09/16/09	—
AUD	302	JPY	23,312	09/16/09	(5	)
AUD	302	JPY	23,312	09/16/09	5
AUD	1	USD	1	07/01/09	—
AUD	92	USD	72	09/16/09	(1	)
AUD	96	USD	77	09/16/09	—
AUD	209	USD	168	09/16/09	—
BRL	82	USD	37	08/03/09	(5	)
BRL	1,181	USD	550	08/04/09	(51	)
CAD	211	CHF	201	09/16/09	3
CAD	211	CHF	201	09/16/09	1
CAD	117	EUR	74	09/16/09	2
CAD	117	EUR	74	09/16/09	1
CAD	54	USD	48	09/16/09	1


Foreign Currency Exchange Contracts
Amount Sold		Amount Bought		Settlement Date	Unrealized Appreciation (Depreciation) $

CAD	130	USD	116	09/16/09	4
CHF	80	USD	73	09/16/09	—
CHF	181	USD	169	09/16/09	3
CHF	260	USD	243	09/16/09	3
CHF	264	USD	242	09/16/09	(2	)
CHF	265	USD	242	09/16/09	(2	)
EUR	90	JPY	12,131	09/16/09	(1	)
EUR	90	JPY	12,131	09/16/09	—
EUR	42	USD	59	07/01/09	—
EUR	18	USD	25	07/27/09	—
EUR	841	USD	1,173	07/27/09	(6	)
EUR	80	USD	113	07/31/09	—
EUR	126	USD	178	07/31/09	—
EUR	510	USD	706	09/16/09	(9	)
GBP	117	EUR	138	09/16/09	—
GBP	117	EUR	138	09/16/09	—
GBP	77	JPY	12,170	09/16/09	—
GBP	77	JPY	12,170	09/16/09	(1	)
GBP	91	NZD	232	09/16/09	2
GBP	91	NZD	232	09/16/09	(3	)
GBP	2	USD	3	07/01/09	—
GBP	10	USD	16	07/02/09	—
GBP	127	USD	196	07/02/09	(12	)
GBP	172	USD	276	07/02/09	(7	)
GBP	122	USD	202	08/06/09	1
GBP	170	USD	283	08/07/09	3
GBP	35	USD	58	09/16/09	—
GBP	75	USD	122	09/16/09	(1	)
GBP	134	USD	219	09/16/09	(1	)
JPY	11,261	AUD	147	09/16/09	—
JPY	11,261	AUD	147	09/16/09	1
JPY	35,432	CHF	389	09/16/09	(7	)
JPY	35,432	CHF	389	09/16/09	(3	)
JPY	12,662	GBP	80	09/16/09	—
JPY	12,662	GBP	80	09/16/09	—
JPY	4,960	USD	51	07/02/09	—
JPY	9,411	USD	96	07/16/09	(2	)
JPY	14,221	USD	146	09/16/09	(2	)
JPY	87,935	USD	898	09/16/09	(16	)
NOK	628	SEK	771	09/16/09	—
NOK	628	SEK	771	09/16/09	2
NOK	1,241	SEK	1,530	09/16/09	3
NOK	1,241	SEK	1,530	09/16/09	3
NZD	155	EUR	70	09/16/09	(3	)
NZD	155	EUR	70	09/16/09	1
NZD	228	EUR	103	09/16/09	(1	)
NZD	228	EUR	103	09/16/09	(1	)
NZD	150	USD	96	09/16/09	—
SEK	902	USD	115	09/16/09	(2	)
SEK	927	USD	121	09/16/09	1


Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts					(84	)

See accompanying notes which are an integral part of the financial statements.


46		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands


Interest Rate Swaps Contracts
Counter Party	Notional Amount		Fund Receives	Fund Pays	Termination Date	Market Value $

Bank of America	USD	700	Three Month LIBOR	3.750%	12/16/24	34
Bank of America	USD	100	Three Month LIBOR	4.000%	12/17/29	3
Bank of America	USD	800	Three Month LIBOR	4.000%	12/17/29	24
Bank of America	USD	400	4.000%	Three Month LIBOR	12/16/19	2
Bank of America	USD	1,500	5.628%	Three Month LIBOR	06/16/36	369
Barclays Bank PLC	BRL	100	11.360%	Brazil Interbank Deposit Rate	01/04/10	—
Barclays Bank PLC	USD	146	Three Month LIBOR	4.420%	11/15/21	(5	)
Barclays Bank PLC	USD	144	Three Month LIBOR	4.524%	11/15/21	(9	)
Barclays Bank PLC	USD	530	Three Month LIBOR	4.633%	11/15/21	(40	)
Barclays Bank PLC	USD	266	Three Month LIBOR	4.540%	11/15/21	(14	)
BNP Paribas	EUR	500	2.090%	Consumer Price Index (France)	10/15/10	24
BNP Paribas	EUR	300	4.500%	Six Month EURIBOR	03/18/14	34
Deutsche Bank	EUR	1,350	Six Month EURIBOR	3.000%	12/16/14	11
Deutsche Bank	KRW	416,000	2.820%	Korean Interbank Offer Rate	01/28/11	(6	)
Deutsche Bank	KRW	200,000	3.870%	Korean Interbank Offer Rate	06/12/11	1
Deutsche Bank	KRW	1,120,000	3.693%	Korean Interbank Offer Rate	06/26/11	3
Deutsche Bank	USD	5,700	2.250%	Three Month LIBOR	12/17/12	(69	)
Deutsche Bank	USD	400	Three Month LIBOR	3.000%	12/16/14	6
Deutsche Bank	USD	300	Three Month LIBOR	3.750%	12/16/24	14
Deutsche Bank	USD	200	Three Month LIBOR	4.000%	12/17/29	6
Deutsche Bank	USD	200	4.000%	Three Month LIBOR	12/17/29	(6	)
Deutsche Bank	AUD	200	4.500%	Three Month BBSW	06/15/11	—
Deutsche Bank	GBP	100	5.000%	Six Month LIBOR	03/18/14	11
Goldman Sachs	GBP	100	5.250%	Six Month LIBOR	03/18/14	13
HSBC	GBP	300	5.000%	Six Month LIBOR	09/17/13	33
JP Morgan	EUR	1,350	3.000%	Six Month LIBOR	12/16/14	(11	)
JP Morgan	KRW	405,000	2.830%	Korean Interbank Offer Rate	01/28/11	(6	)
JP Morgan	KRW	350,000	3.900%	Korean Interbank Offer Rate	06/15/11	2
JP Morgan	KRW	1,100,000	3.720%	Korean Interbank Offer Rate	06/22/11	3
JP Morgan	USD	600	Three Month LIBOR	3.500%	12/16/19	23
JP Morgan	USD	600	Three Month LIBOR	3.750%	12/16/24	29
JP Morgan	USD	400	Three Month LIBOR	3.750%	12/16/24	19
JP Morgan	USD	300	Three Month LIBOR	4.000%	12/17/29	9
JP Morgan	USD	200	4.000%	Three Month LIBOR	12/17/29	(6	)
JP Morgan	USD	500	4.000%	Three Month LIBOR	12/17/29	(15	)
Merrill Lynch	BRL	100	14.765%	Brazil Interbank Deposit Rate	01/02/12	4
Merrill Lynch	USD	1,500	4.000%	Three Month LIBOR	06/17/11	74
Merrill Lynch	BRL	200	12.948%	Brazil Interbank Deposit Rate	01/04/10	4
Merrill Lynch	BRL	700	11.980%	Brazil Interbank Deposit Rate	01/02/12	6
Merrill Lynch	BRL	800	12.540%	Brazil Interbank Deposit Rate	01/02/12	12
Morgan Stanley	USD	1,500	4.000%	Three Month LIBOR	12/16/19	6
Morgan Stanley	BRL	400	12.670%	Brazil Interbank Deposit Rate	01/04/10	4
Royal Bank of Scotland	EUR	100	1.955%	Consumer Price Index (France)	03/28/12	7
Royal Bank of Scotland	GBP	200	5.250%	Six Month LIBOR	03/18/14	26
Royal Bank of Scotland	USD	1,100	4.000%	Three Month LIBOR	06/17/11	55
UBS	AUD	2,900	4.500%	Three Month LIBOR	06/15/11	(6	)
UBS	AUD	1,600	4.250%	Six Month BBSW	09/15/11	(4	)
UBS	BRL	400	12.410%	Brazil Interbank Deposit Rate	01/04/10	5
UBS	BRL	800	10.575%	Brazil Interbank Deposit Rate	01/02/12	(4	)


Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $172						675

See accompanying notes which are an integral part of the financial statements.


Core Bond Fund		47

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)


Credit Default Swap Contracts
Corporate Issues
Reference Entity	Counter Party	Implied Credit Spread	Notional Amount		Fund (Pays)/ Receives Fixed Rate		Termination Date	Market Value $

Arrow Electronics, Inc.	Citigroupglobal Markets, Inc.	0.087%	USD	135	(0.820%	)	03/20/14	—
Centex Corporation	JP Morgan	0.163%	USD	325	(4.400%	)	12/20/13	(37	)
Citigroup, Inc.	Barclays Bank PLC	1.763%	USD	600	5.650%		03/20/13	(158	)
Citigroup, Inc.	JP Morgan	1.763%	USD	200	5.170%		03/20/13	(55	)
Darden Restaurants, Inc.	Deutsche Bank	0.129%	USD	400	(2.250%	)	03/20/14	(17	)
Ford Motor Credit Co.	Barclays Bank PLC	0.929%	USD	1,000	6.150%		09/20/12	(81	)
Ford Motor Credit Co.	Goldman Sachs	0.929%	USD	600	5.850%		09/20/12	(53	)
Ford Motor Credit Co.	Merrill Lynch	2.128%	USD	200	5.000%		12/20/09	(15	)
Gaz Capital for Gazprom	Barclays Bank PLC	0.495%	USD	300	1.600%		12/20/12	(30	)
Gaz Capital for Gazprom	Morgan Stanely	0.493%	USD	100	2.180%		02/20/13	(8	)
Gaz Capital for Gazprom	Morgan Stanely	0.493%	USD	1,000	2.480%		02/20/13	(69	)
GE Capital Corp.	Banque National De Paris	0.372%	USD	400	1.100%		12/20/09	(5	)
GE Capital Corp.	Citibank	0.417%	USD	200	4.000%		12/20/13	(1	)
GE Capital Corp.	Deutsche Bank	0.417%	USD	100	(4.900%	)	12/20/13	3
General Motors Acceptance Corp.	Merrill Lynch	1.191%	USD	1,000	1.850%		09/20/09	(22	)
Hewelett-Packard Co.	Citigroupglobal Markets, Inc.	0.051%	USD	135	(0.720%	)	03/20/14	(1	)
Lowe’s Companies, Inc.	Citigroupglobal Markets, Inc.	0.074%	USD	340	(1.450%	)	03/20/14	(11	)
Mexico Government International Bond	Morgan Stanely	0.161%	USD	100	0.750%		01/20/12	(2	)
Nordstrom, Inc.	Deutsche Bank	0.221%	USD	425	(2.100%	)	03/20/14	2
Pulte Homes, Inc.	JP Morgan	0.241%	USD	725	(2.550%	)	12/20/13	(5	)
Pulte Homes, Inc.	JP Morgan	0.238%	USD	1,000	(3.870%	)	03/20/14	(63	)
SLM Corp.	Citibank	0.787%	USD	200	4.850%		03/20/13	(17	)
The Home Depot, Inc.	Citigroupglobal Markets, Inc.	0.094%	USD	340	(3.250%	)	03/20/14	(34	)


Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - ($70)								(679	)


Credit Indices
Reference Entity	Counter Party	Notional Amount		Fund (Pays)/ Receives Fixed Rate	Termination Date	Market Value $

ABX - HE Index for Sub-Prime Home Equity Sector	Barclays Bank PLC	USD	1,300	0.760%	01/25/38	(945	)
ABX - HE Index for Sub-Prime Home Equity Sector	Citibank	USD	650	0.170%	05/25/46	(601	)
ABX - HE Index for Sub-Prime Home Equity Sector	Credit Suisse First Boston	USD	2,050	0.840%	10/12/52	951
ABX - HE Index for Sub-Prime Home Equity Sector	JP Morgan	USD	1,300	0.090%	08/25/37	(965	)
CMBX AJ Index	Bank of America	USD	100	0.840%	10/12/52	46
CMBX AJ Index	Barclays Bank PLC	USD	340	(0.840%)	10/12/52	157
CMBX AJ Index	Barclays Bank PLC	USD	360	(0.840%)	10/12/52	167
CMBX AJ Index	Deutsche Bank	USD	2,000	(1.500%)	12/20/13	21
CMBX AJ Index	Deutsche Bank	USD	3,000	(1.500%)	12/20/13	16
CMBX AJ Index	Deutsche Bank	USD	3,000	(1.500%)	12/20/13	21
Dow Jones CDX Index	Deutsche Bank	USD	778	0.708%	12/20/12	9
Dow Jones CDX Index	JP Morgan	USD	389	0.553%	12/20/17	(21	)
Dow Jones CDX Index	Pershing LLC 1st Republic P.B. CNS	USD	194	0.548%	12/20/17	(11	)


Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - ($649)						(1,155	)


Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($719)						(1,834	)

See accompanying notes which are an integral part of the financial statements.


48		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Presentation of Portfolio Holdings — June 30, 2009 (Unaudited)


Portfolio Summary	Market Value $ Level 1			Market Value $ Level 2			Market Value $ Level 3		Total			% of Net Assets

Asset-Backed Securities	$	—		$	14,623,624		$	280,704	$	14,904,328		4.5
Corporate Bonds and Notes		—			67,864,847			—		67,864,847		20.5
International Debt		—			20,556,678			—		20,556,678		6.2
Loan Agreements		—			2,586,299			6,144		2,592,443		0.8
Mortgage-Backed Securities		—			242,448,682			—		242,448,682		73.2
Municipal Bonds		—			3,394,883			—		3,394,883		1.0
Non-US Bonds		—			1,565,895			55,902		1,621,797		0.5
United States Government Agencies		—			8,015,331			—		8,015,331		2.4
United States Government Treasuries		—			11,559,838			—		11,559,838		3.5
Preferred Stocks		632,625			—			—		632,625		0.2
Options Purchased		—			587,315			—		587,315		0.2
Short-Term Investments		20,784,000			17,197,372			—		37,981,372		11.5
Other Securities		—			12,261,809			—		12,261,809		3.7


Total Investments		21,416,625			402,662,573			342,750		424,421,948		128.2

Other Assets and Liabilities, Net												(28.2	)


												100.0


Futures Contracts		527,472			—			—		527,472		0.2
Options Written		—			(6,854	)		—		(6,854	)	(—	)*
Foreign Currency Exchange Contracts		(3,089	)		(80,600	)		—		(83,689	)	(—	)*
Interest Rate Swap Contracts		—			447,762			55,686		503,448		0.2
Credit Default Swap Contracts		—			(1,115,420	)		—		(1,115,420	)	(0.3	)

Total Other Financial Instruments**		524,383			(755,112	)		55,686		(175,043	)


Total	$	21,941,008		$	401,907,461		$	398,436	$	424,246,905

Less than .05% of net assets.

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.

See accompanying notes which are an integral part of the financial statements.


Core Bond Fund		49

Russell Investment Funds

Real Estate Securities Fund

Shareholder Expense Example — June 30, 2009 (Unaudited)

Fund Expenses

Example

Actual Expenses

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.


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2009	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2009	$	911.10	$	1,019.84
Expenses Paid During Period*	$	4.74	$	5.01

*	Expenses are equal to the Fund’s annualized expense ratio of 1.00% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).


50		Real Estate Securities Fund

Russell Investment Funds

Real Estate Securities Fund

Schedule of Investments — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Common Stocks - 96.1%
Diversified - 8.9%
Agile Property Holdings, Ltd.	78,400	111
Allgreen Properties, Ltd.	228,000	157
British Land Co. PLC (ö)	107,703	679
Canadian Real Estate Investment Trust (ö)	20,506	434
CapitaLand, Ltd.	186,500	474
Castellum AB	11,825	75
Dexus Property Group (ö)	640,841	384
Gecina SA (ö)	1,885	117
GPT Group (ö)	729,027	284
Hang Lung Properties, Ltd. - ADR	117,000	386
Henderson Land Development Co., Ltd.	80,336	460
Hysan Development Co., Ltd.	163,470	419
ICADE (ö)	2,708	223
Keppel Land, Ltd.	181,500	275
Kerry Properties, Ltd.	61,500	273
Mirvac Group (ö)	211,339	182
Mitsubishi Estate Co., Ltd.	66,000	1,093
Mitsui Fudosan Co., Ltd.	54,100	937
New World Development, Ltd.	387,000	699
Shui On Land, Ltd.	225,200	153
Sino Land Co.	82,000	135
Sponda OYJ (Æ)	27,500	78
Stockland (ö)	154,524	396
Sun Hung Kai Properties, Ltd.	144,606	1,800
Suntec Real Estate Investment Trust (Æ)(ö)	115,000	68
Tokyo Tatemono Co., Ltd.	41,000	227
Tokyu Land Corp.	34,000	154
Unibail-Rodamco SE (ö)	6,341	947
Vornado Realty Trust (ö)(Ñ)	266,858	12,017
Washington Real Estate Investment Trust (ö)(Ñ)	96,198	2,152
Wharf Holdings, Ltd.	38,000	161

		25,950


Free Standing Retail - 1.0%
National Retail Properties, Inc. (ö)(Ñ)	136,100	2,361
Realty Income Corp. (ö)(Ñ)	25,900	568

		2,929


Health Care - 13.8%
Brookdale Senior Living, Inc.	20,372	198
Cogdell Spencer, Inc. (ö)	90,100	387
HCP, Inc. (ö)(Ñ)	425,368	9,014
Health Care REIT, Inc. (ö)	158,977	5,421
LTC Properties, Inc. (ö)	14,050	287
Medical Properties Trust, Inc. (ö)(Ñ)	117,904	716
Nationwide Health Properties, Inc. (ö)	323,362	8,323
Omega Healthcare Investors, Inc. (ö)	232,826	3,613
Senior Housing Properties Trust (ö)	289,080	4,718
Ventas, Inc. (ö)	254,437	7,598

		40,275


	Principal Amount ($) or Shares	Market Value $
Industrial - 5.5%
AMB Property Corp. (ö)(Ñ)	266,337	5,010
DCT Industrial Trust, Inc. (ö)	738,799	3,014
EastGroup Properties, Inc. (ö)	60,200	1,988
First Potomac Realty Trust (ö)	76,200	743
Goodman Group (ö)	257,232	75
ProLogis (ö)(Ñ)	605,255	4,878
ProLogis European Properties	55,519	212
Segro PLC (ö)	301,316	121

		16,041


Lodging/Resorts - 3.5%
DiamondRock Hospitality Co. (ö)	72,100	451
Host Hotels & Resorts, Inc. (ö)(Ñ)	725,900	6,090
LaSalle Hotel Properties (ö)(Ñ)	141,450	1,746
Orient-Express Hotels, Ltd. Class A	12,563	107
Shangri-La Asia, Ltd.	124,000	185
Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö)	60,646	1,346
Sunstone Hotel Investors, Inc. (ö)	76,400	409

		10,334


Mixed Industrial/Office - 3.0%
Duke Realty Corp. (ö)	144,650	1,269
Liberty Property Trust (ö)	220,701	5,085
PS Business Parks, Inc. (ö)	47,672	2,309

		8,663


Office - 11.7%
Alexandria Real Estate Equities, Inc. (ö)(Ñ)	40,600	1,453
Beni Stabili SpA	93,795	73
BioMed Realty Trust, Inc. (ö)	231,076	2,364
Boston Properties, Inc. (ö)(Ñ)	290,092	13,837
Brandywine Realty Trust (ö)	87,518	652
Brookfield Properties Corp.	45,829	365
CapitaCommercial Trust (Æ)(ö)	234,000	131
Commonwealth Property Office Fund (ö)	222,611	148
Corporate Office Properties Trust SBI MD (ö)(Ñ)	86,800	2,546
Derwent London PLC (ö)	14,730	227
Government Properties Income Trust (Æ)(ö)	15,650	321
Great Portland Estates PLC (ö)	110,520	401
Highwoods Properties, Inc. (ö)	73,600	1,646
Hongkong Land Holdings, Ltd.	139,300	492
HRPT Properties Trust (ö)	154,800	628
ING Office Fund (ö)	134,865	50
ING Office Fund	55,464	21
Japan Prime Realty Investment Corp. Class A (ö)	41	89
Kenedix Realty Investment Corp. Class A (ö)	19	66
Kilroy Realty Corp. (ö)(Ñ)	199,298	4,094
Mack-Cali Realty Corp. (ö)	84,281	1,922


Real Estate Securities Fund		51

Russell Investment Funds

Real Estate Securities Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Macquarie Office Trust (ö)	485,346	81
Nippon Building Fund, Inc. Class A (ö)	8	68
Nomura Real Estate Office Fund, Inc. Class A (ö)	13	83
NTT Urban Development Corp.	165	159
SL Green Realty Corp. (ö)(Ñ)	95,798	2,198

		34,115

Regional Malls - 11.9%
Aeon Mall Co., Ltd.	12,100	229
CBL & Associates Properties, Inc. (ö)	51,186	276
Macerich Co. (The) (ö)(Ñ)	193,501	3,408
Simon Property Group, Inc. (ö)	554,605	28,523
Taubman Centers, Inc. (ö)(Ñ)	33,800	908
Westfield Group (ö)	149,336	1,360

		34,704

Residential - 15.0%
American Campus Communities, Inc. (ö)(Ñ)	220,723	4,896
Apartment Investment & Management Co. Class A (ö)(Ñ)	81,471	721
AvalonBay Communities, Inc. (ö)(Ñ)	179,318	10,031
Boardwalk Real Estate Investment Trust (ö)	5,543	156
Camden Property Trust (ö)	175,926	4,856
China Overseas Land & Investment, Ltd.	342,200	792
China Resources Land, Ltd.	144,000	317
Country Garden Holdings Co.	345,000	160
Equity Lifestyle Properties, Inc. (ö)(Ñ)	61,281	2,279
Equity Residential (ö)	521,378	11,590
Essex Property Trust, Inc. (ö)(Ñ)	91,000	5,663
Mid-America Apartment Communities, Inc. (ö)	24,719	907
MRV Engenharia e Participacoes SA	6,192	86
PDG Realty SA Empreendimentos e Participacoes	7,500	81
Post Properties, Inc. (ö)	57,700	775
Shimao Property Holdings, Ltd.	227,500	440

		43,750

Self Storage - 6.3%
Extra Space Storage, Inc. (ö)(Ñ)	204,200	1,705
Public Storage (ö)	256,166	16,774

		18,479

Shopping Centers - 8.6%
Acadia Realty Trust (ö)	58,424	762
Corio NV (ö)	9,044	441
Federal Realty Investment Trust (ö)(Ñ)	149,330	7,694

A portion of the portfolio has been fair valued as of period end.


	Principal Amount ($) or Shares	Market Value $
Hammerson PLC (ö)	61,178	310
Kimco Realty Corp. (ö)	482,451	4,849
Kite Realty Group Trust (ö)	239,800	700
Link REIT (The) (ö)	28,128	60
Mercialys SA (ö)	4,766	147
Primaris Retail Real Estate Investment Trust (ö)	20,344	207
Regency Centers Corp. (ö)(Ñ)	241,999	8,448
Tanger Factory Outlet Centers (ö)	36,800	1,193
Weingarten Realty Investors (ö)	22,726	330

		25,141

Specialty - 6.9%
Digital Realty Trust, Inc. (ö)(Ñ)	270,716	9,705
DuPont Fabros Technology, Inc. (ö)	115,586	1,089
Entertainment Properties Trust (ö)(Ñ)	29,200	602
Plum Creek Timber Co., Inc. (ö)(Ñ)	195,804	5,831
Rayonier, Inc. (ö)	75,550	2,746

		19,973


Total Common Stocks (cost $298,766)		280,354


Short-Term Investments - 4.4%
Russell Investment Company Russell Money Market Fund (£)	12,923,000	12,923


Total Short-Term Investments (cost $12,923)		12,923


Other Securities - 23.1%
State Street Securities Lending Quality Trust (×)	68,752,224	67,243


Total Other Securities (cost $68,752)		67,243


Total Investments - 123.6% (identified cost $380,441)		360,520

Other Assets and Liabilities, Net - (23.6%)		(68,792	)


Net Assets - 100.0%		291,728

See accompanying notes which are an integral part of the financial statements.


52		Real Estate Securities Fund

Russell Investment Funds

Real Estate Securities Fund

Schedule of Investments, continued — June 30, 2009 (Unaudited)

Amounts in thousands


Foreign Currency Exchange Contracts

Amount Sold		Amount Bought		Settlement Date	Unrealized Appreciation (Depreciation) $

USD	7	AUD	9	7/1/2009	—
USD	7	AUD	9	7/1/2009	—
USD	35	AUD	43	7/1/2009	—
USD	1	AUD	1	7/2/2009	—
USD	1	AUD	1	7/2/2009	—
USD	7	AUD	9	7/2/2009	—
USD	7	AUD	9	7/2/2009	—
USD	15	AUD	18	7/2/2009	—
USD	20	AUD	25	7/6/2009	—
USD	9	BRL	18	7/1/2009	—
USD	9	EUR	7	7/1/2009	—
USD	9	EUR	6	7/1/2009	—
USD	35	EUR	25	7/1/2009	—
USD	13	EUR	9	7/2/2009	—
USD	244	EUR	5	7/2/2009	—
USD	12	GBP	7	7/1/2009	—
USD	13	GBP	8	7/2/2009	—
USD	3	JPY	333	7/1/2009	—
USD	164	JPY	15,647	7/1/2009	(2	)
USD	10	JPY	1,005	7/2/2009	—
USD	17	SGD	25	7/1/2009	—
EUR	1	USD	1	7/1/2009	—
EUR	3	USD	4	7/2/2009	—
EUR	6	USD	9	7/2/2009	—
HKD	70	USD	9	7/2/2009	—
HKD	244	USD	31	7/2/2009	—
JPY	3,141	USD	33	7/1/2009	—
JPY	7,618	USD	80	7/1/2009	1
SGD	41	USD	28	7/1/2009	—
SGD	89	USD	61	7/2/2009	—


Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts					(1	)

See accompanying notes which are an integral part of the financial statements.


Real Estate Securities Fund		53

Russell Investment Funds

Real Estate Securities Fund

Presentation of Portfolio Holdings — June 30, 2009 (Unaudited)


Portfolio Summary	Market Value $ Level 1			Market Value $ Level 2		Market Value $ Level 3		Total			% of Net Assets

Diversified	$	14,602,256		$	11,348,139	$	—	$	25,950,395		8.9
Free Standing Retail		2,929,063			—		—		2,929,063		1.0
Health Care		40,274,688			—		—		40,274,688		13.8
Industrial		15,633,208			408,122		—		16,041,330		5.5
Lodging/Resorts		10,148,881			185,431		—		10,334,312		3.5
Mixed Industrial/Office		8,662,763			—		—		8,662,763		3.0
Office		32,047,047			2,068,208		—		34,115,255		11.7
Regional Malls		33,114,648			1,589,176		—		34,703,824		11.9
Residential		42,040,887			1,708,599		—		43,749,486		15.0
Self Storage		18,478,820			—		—		18,478,820		6.3
Shopping Centers		24,183,213			958,031		—		25,141,244		8.6
Specialty		19,972,794			—		—		19,972,794		6.9
Short-Term Investments		12,923,000			—		—		12,923,000		4.4
Other Securities		—			67,243,350		—		67,243,350		23.1

Total Investments		275,011,268			85,509,056		—		360,520,324		123.6

Other Assets and Liabilities, Net											(23.6	)

											100.0

Foreign Currency		(558	)		—		—		(558	)	(—	)*

Total Other Financial Instruments**		(558	)		—		—		(558	)

Total	$	275,010,711		$	85,509,056	$	—	$	360,519,767

Less than .05% of net assets.

See accompanying notes which are an integral part of the financial statements.


54		Real Estate Securities Fund

Russell Investment Funds

Notes to Schedules of Investments — June 30, 2009 (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.

(µ)	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.

(£)	A portion of this asset has been segregated to cover the liability caused by the valuation of the State Street Securities Lending Quality Trust Fund.

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

BBSW - Australian Bank Bill Short Term Rate

CIBOR - Copenhagen Interbank Offered Rate

CME - Chicago Mercantile Exchange

CMO - Collateralized Mortgage Obligation

CVO - Contingent Value Obligation

EMU - European Economic and Monetary Union

EURIBOR - Euro Interbank Offered Rate

FDIC - Federal Deposit Insurance Company

GDR - Global Depositary Receipt

GDS - Global Depositary Share

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		55

Russell Investment Funds

Statements of Assets and Liabilities — June 30, 2009 (Unaudited)


Amounts in thousands	Multi-Style Equity Fund		Aggressive Equity Fund		Non-U.S. Fund		Core Bond Fund		Real Estate Securities Fund

Assets
Investments, at identified cost	$	339,570	$	183,042	$	314,266	$	450,277	$	380,441
Investments, at market***		330,885		181,431		281,783		424,422		360,520
Cash		—		—		—		117		—
Cash (restricted)		2,500		1,200		2,800		1,651		—
Foreign currency holdings*		—		—		1,551		287		150
Unrealized appreciation on foreign currency exchange contracts		—		—		317		119		1
Receivables:
Dividends and interest		320		137		658		2,421		1,269
Dividends from affiliated RIC Russell Money Market Fund		3		2		4		3		2
Investments sold		2,869		1,405		77		54,126		687
Fund shares sold		30		152		92		63		67
Foreign taxes recoverable		—		—		170		—		—
Daily variation margin on futures contracts		—		—		69		472		—
Prepaid expenses		1		—		1		7		1
Interest rate swap contracts, at market value****		—		—		—		876		—
Credit default swap contracts, at market value*****		—		—		—		1,393		—

Total assets		336,608		184,327		287,522		485,957		362,697


Liabilities
Payables:
Due to Custodian or Broker		—		—		6		1,112		—
Investments purchased		3,001		2,064		880		135,467		1,907
Fund shares redeemed		108		37		45		131		13
Accrued fees to affiliates		202		89		194		140		211
Other accrued expenses		51		57		120		69		84
Daily variation margin on futures contracts		133		14		236		156		—
Deferred tax liability		—		—		4		—		—
Other payable		—		—		—		1,714		—
Unrealized depreciation on foreign currency exchange contracts		—		—		63		203		2
Options written, at market value**		—		—		—		7		—
Payable upon return of securities loaned		25,155		54,938		18,014		12,537		68,752
Interest rate swap contracts, at market value****		—		—		—		201		—
Credit default swap contracts, at market value*****		—		—		—		3,227		—

Total liabilities		28,650		57,199		19,562		154,964		70,969


Net Assets	$	307,958	$	127,128	$	267,960	$	330,993	$	291,728

See accompanying notes which are an integral part of the financial statements.


56		Statement of Assets and Liabilities

Russell Investment Funds

Statements of Assets and Liabilities, continued — June 30, 2009 (Unaudited)


Amounts in thousands	Multi-Style Equity Fund			Aggressive Equity Fund			Non-U.S. Fund			Core Bond Fund			Real Estate Securities Fund

Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	831		$	144		$	1,920		$	5,684		$	2,376
Accumulated net realized gain (loss)		(136,464	)		(83,602	)		(101,446	)		(1,362	)		(133,326	)
Unrealized appreciation (depreciation) on:
Investments		(8,685	)		(1,611	)		(32,487	)		(25,855	)		(19,921	)
Futures contracts		(518	)		(274	)		(352	)		527			—
Options written		—			—			—			14			—
Credit default swap contracts		—			—			—			(1,115	)		—
Interest rate swap contracts		—			—			—			503			—
Foreign currency-related transactions		—			—			268			(78	)		(1	)
Shares of beneficial interest		322			166			344			342			349
Additional paid-in capital		452,472			212,305			399,713			352,333			442,251

Net Assets	$	307,958		$	127,128		$	267,960		$	330,993		$	291,728

Net Asset Value, offering and redemption price per share:
Net asset value per share******	$	9.56		$	7.64		$	7.78		$	9.68		$	8.37
Net assets	$	307,958,330		$	127,128,121		$	267,959,540		$	330,993,177		$	291,728,211
Shares outstanding ($.01 par value)		32,215,588			16,640,498			34,445,864			34,202,408			34,851,934
Amounts in thousands
* Foreign currency holdings - cost	$	—		$	—		$	1,551		$	287		$	150
** Premiums received on options written	$	—		$	—		$	—		$	21		$	—
*** Securities on loan included in investments	$	24,507		$	53,143		$	17,804		$	12,306		$	67,383
**** Interest rate swap contracts - premiums paid (received)	$	—		$	—		$	—		$	172		$	—
***** Credit default swap contracts - premiums paid (received)	$	—		$	—		$	—		$	(719	)	$	—
****** 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.


Statement of Assets and Liabilities		57

Russell Investment Funds

Statements of Operations — For the Period Ended June 30, 2009 (Unaudited)


Amounts in thousands	Multi-Style Equity Fund			Aggressive Equity Fund			Non-U.S. Fund			Core Bond Fund			Real Estate Securities Fund

Investment Income
Dividends	$	2,917		$	854		$	5,202		$	—		$	6,152
Dividends from affiliated money market funds		46			2			49			61			28
Interest		—			—			—			8,652			—
Securities lending income		204			227			195			69			397
Less foreign taxes withheld		—			—			(529	)		—			—

Total investment income		3,167			1,083			4,917			8,782			6,577


Expenses
Advisory fees		1,037			520			1,077			858			1,053
Administrative fees		71			29			60			78			66
Custodian fees		87			121			260			174			150
Transfer agent fees		6			3			5			7			6
Professional fees		36			22			34			39			35
Trustees’ fees		4			2			4			5			4
Printing fees		3			1			2			4			3
Miscellaneous		8			4			2			7			5

Expenses before reductions		1,252			702			1,444			1,172			1,322
Expense reductions		(34	)		(102	)		(153	)		(107	)		—

Net expenses		1,218			600			1,291			1,065			1,322

Net investment income (loss)		1,949			483			3,626			7,717			5,255


Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		(52,053	)		(27,228	)		(20,990	)		(116	)		(51,866	)
Futures contracts		770			840			2,070			1,635			—
Options written		—			—			—			(1,005	)		—
Credit default swap contracts		—			—			—			(2,018	)		—
Interest rate swap contracts		—			—			—			2,384			—
Foreign currency-related transactions		—			—			2,312			(153	)		8

Net realized gain (loss)		(51,283	)		(26,388	)		(16,608	)		727			(51,858	)

Net change in unrealized appreciation (depreciation) on:
Investments		70,017			34,373			28,778			9,739			27,259
Futures contracts		(972	)		(917	)		(865	)		(1,821	)		—
Options written		—			—			—			1,456			—
Credit default swap contracts		—			—			—			606			—
Interest rate swap contracts		—			—			—			450			—
Foreign currency-related transactions		—			—			(1,243	)		108			3

Net change in unrealized appreciation (depreciation)		69,045			33,456			26,670			10,538			27,262

Net realized and unrealized gain (loss)		17,762			7,068			10,062			11,265			(24,596	)

Net Increase (Decrease) in Net Assets from Operations	$	19,711		$	7,551		$	13,688		$	18,982		$	(19,341	)

See accompanying notes which are an integral part of the financial statements.


58		Statements of Operations

(This page intentionally left blank)

Russell Investment Funds

Statements of Changes in Net Assets


	Multi-Style Equity Fund						Aggressive Equity Fund
Amounts in thousands	Period Ended June 30, 2009 (Unaudited)			Fiscal Year Ended December 31, 2008			Period Ended June 30, 2009 (Unaudited)			Fiscal Year Ended December 31, 2008

Increase (Decrease) in Net Assets

Operations
Net investment income (loss)	$	1,949		$	6,074		$	483		$	1,551
Net realized gain (loss)		(51,283	)		(81,223	)		(26,388	)		(55,173	)
Net change in unrealized appreciation (depreciation)		69,045			(125,100	)		33,456			(45,658	)

Net increase (decrease) in net assets from operations		19,711			(200,249	)		7,551			(99,280	)


Distributions
From net investment income		(2,808	)		(5,806	)		(339	)		(1,578	)
From net realized gain		—			(3,972	)		—			(44	)

Net decrease in net assets from distributions		(2,808	)		(9,778	)		(339	)		(1,622	)


Share Transactions
Net increase (decrease) in net assets from share transactions		(7,156	)		28,316			(3,172	)		(4,937	)


Total Net Increase (Decrease) in Net Assets		9,747			(181,711	)		4,040			(105,839	)

Net Assets
Beginning of period		298,211			479,922			123,088			228,927

End of period	$	307,958		$	298,211		$	127,128		$	123,088

Undistributed (overdistributed) net investment income included in net assets	$	831		$	1,690		$	144		$	—

See accompanying notes which are an integral part of the financial statements.


60		Statements of Changes in Net Assets


Non-U.S. Fund						Core Bond Fund						Real Estate Securities Fund
Period Ended June 30, 2009 (Unaudited)			Fiscal Year Ended December 31, 2008			Period Ended June 30, 2009 (Unaudited)			Fiscal Year Ended December 31, 2008			Period Ended June 30, 2009 (Unaudited)			Fiscal Year Ended December 31, 2008




$	3,626		$	7,095		$	7,717		$	16,634		$	5,255		$	11,970
	(16,608	)		(87,637	)		727			8,473			(51,858	)		(72,571	)
	26,670			(106,389	)		10,538			(40,513	)		27,262			(115,578	)

	13,688			(186,931	)		18,982			(15,406	)		(19,341	)		(176,179	)



	(3,432	)		—			(4,871	)		(14,176	)		(6,892	)		(8,443	)
	—			(3,345	)		(2,610	)		(6,979	)		—			—

	(3,432	)		(3,345	)		(7,481	)		(21,155	)		(6,892	)		(8,443	)



	1,954			14,340			383			9,603			14,545			(771	)


	12,210			(175,936	)		11,884			(26,958	)		(11,688	)		(185,393	)


	255,750			431,686			319,109			346,067			303,416			488,809

$	267,960		$	255,750		$	330,993		$	319,109		$	291,728		$	303,416


$	1,920		$	1,726		$	5,684		$	2,838		$	2,376		$	4,013

See accompanying notes which are an integral part of the financial statements.


Statements of Changes in Net Assets		61

Russell Investment Funds

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		$ Total Distributions
Multi-Style Equity Fund
June 30, 2009*	9.00	.06	.59		.65		(.09	)	—		(.09	)
December 31, 2008	15.65	.19	(6.52	)	(6.33	)	(.19	)	(.13	)	(.32	)
December 31, 2007	14.93	.16	1.37		1.53		(.16	)	(.65	)	(.81	)
December 31, 2006	13.37	.14	1.55		1.69		(.13	)	—		(.13	)
December 31, 2005	12.60	.12	.79		.91		(.14	)	—		(.14	)
December 31, 2004	11.56	.11	1.02		1.13		(.09	)	—		(.09	)
Aggressive Equity Fund
June 30, 2009*	7.18	.05	.43		.48		(.02	)	—		(.02	)
December 31, 2008	12.99	.09	(5.81	)	(5.72	)	(.09	)	—	(d)	(.09	)
December 31, 2007	14.45	.06	.40		.46		(.05	)	(1.87	)	(1.92	)
December 31, 2006	14.40	.03	2.10		2.13		(.03	)	(2.05	)	(2.08	)
December 31, 2005	14.90	.03	.90		.93		(.03	)	(1.40	)	(1.43	)
December 31, 2004	13.47	.02	1.95		1.97		(.02	)	(.52	)	(.54	)
Non-U.S. Fund
June 30, 2009*	7.48	.11	.29		.40		(.10	)	—		(.10	)
December 31, 2008	13.20	.21	(5.83	)	(5.62	)	—		(.10	)	(.10	)
December 31, 2007	15.01	.25	1.14		1.39		(.38	)	(2.82	)	(3.20	)
December 31, 2006	12.68	.23	2.75		2.98		(.35	)	(.30	)	(.65	)
December 31, 2005	11.33	.16	1.38		1.54		(.19	)	—		(.19	)
December 31, 2004	9.76	.11	1.66		1.77		(.20	)	—		(.20	)
Core Bond Fund
June 30, 2009*	9.33	.23	.34		.57		(.15	)	(.07	)	(.22	)
December 31, 2008	10.32	.47	(.86	)	(.39	)	(.39	)	(.21	)	(.60	)
December 31, 2007	10.14	.51	.20		.71		(.53	)	—		(.53	)
December 31, 2006	10.23	.45	(.08	)	.37		(.46	)	—		(.46	)
December 31, 2005	10.50	.38	(.17	)	.21		(.37	)	(.11	)	(.48	)
December 31, 2004	10.47	.24	.24		.48		(.26	)	(.19	)	(.45	)
Real Estate Securities Fund
June 30, 2009*	9.30	.15	(.88	)	(.73	)	(.20	)	—		(.20	)
December 31, 2008	15.22	.38	(6.03	)	(5.65	)	(.27	)	—		(.27	)
December 31, 2007	21.34	.35	(3.68	)	(3.33	)	(.47	)	(2.32	)	(2.79	)
December 31, 2006	17.28	.37	5.72		6.09		(.39	)	(1.64	)	(2.03	)
December 31, 2005	17.09	.32	1.82		2.14		(.37	)	(1.58	)	(1.95	)
December 31, 2004	13.71	.36	4.33		4.69		(.36	)	(.95	)	(1.31	)

See accompanying notes which are an integral part of the financial statements.


62		Financial Highlights


$ Net Asset Value, End of Period	% Total Return(b)		$ Net Assets, End of Period (000)	% Ratio of Expenses to Average Net Assets, Net(c)(e)	% Ratio of Expenses to Average Net Assets, Gross(c)	% Ratio of Net Investment Income to Average Net Assets(c)(e)	% Portfolio Turnover Rate(b)

9.56	6.23		307,958	.86	.88	1.37	69
9.00	(41.15	)	298,211	.87	.89	1.50	135
15.65	10.36		479,922	.87	.87	1.04	136
14.93	12.75		417,507	.87	.87	1.03	128
13.37	7.27		349,659	.83	.87	.94	130
12.60	9.81		332,759	.87	.88	.96	123

7.64	4.40		127,128	1.04	1.21	1.47	106
7.18	(44.16	)	123,088	1.05	1.18	.84	161
12.99	3.42		228,927	1.05	1.13	.39	180
14.45	14.79		223,646	1.05	1.12	.16	184
14.40	6.36		204,292	.99	1.13	.21	130
14.90	14.73		195,583	1.05	1.17	.17	150

7.78	4.88		267,960	1.08	1.21	3.03	91
7.48	(42.79	)	255,750	1.15	1.21	2.01	123
13.20	10.12		431,686	1.15	1.18	1.70	106
15.01	23.64		369,884	1.15	1.21	1.64	111
12.68	13.69		302,261	1.12	1.26	1.41	88
11.33	18.30		258,766	1.15	1.28	1.11	73

9.68	5.96		330,993	.68	.75	4.94	60
9.33	(3.87	)	319,109	.70	.77	4.70	164
10.32	7.24		346,067	.70	.78	5.04	965
10.14	3.72		265,783	.70	.73	4.40	453
10.23	2.01		216,774	.70	.72	3.70	193
10.50	4.66		175,851	.70	.73	2.41	216

8.37	(8.89	)	291,728	1.00	1.00	3.99	56

Russell Investment Funds N-CSRSCertified semi-annual shareholder report (management investment company)