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

Filed: 27 Aug 09, 12:00am
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    • N-CSRS Certified semi-annual shareholder report (management investment company)
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    Table of Contents

    OMB APPROVAL

    OMB Number:

     3235-0570

    Expires:

     August 31, 2011

    Estimated average burden

    hours per response:

     18.9

    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


    Table of Contents
    Item 1.Reports to Stockholders


    Table of Contents

    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


    Table of Contents

     

     

    Russell Investment Funds

    Russell Investment Funds is a series investment company with nine different investment portfolios referred to as Funds. These financial statements report on five of these Funds.


    Table of Contents

     

    Russell Investment Funds

    Semiannual Report

    June 30, 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


    Table of Contents

     

    Russell Investment Funds

    Copyright © Russell Investments 2009. All rights reserved.

    Russell Investments is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.

    Fund objectives, risks, charges and expenses should be carefully considered before investing. A prospectus containing this and other important information must precede or accompany this material. Please read the prospectus carefully before investing.

    Securities 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.


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    Russell Investment Funds

    Aggressive 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

      $1,044.00  $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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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.


    Table of Contents

    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    
                              

     

    ** 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.

     

    Aggressive Equity Fund 19


    Table of Contents

    Russell Investment Funds

    Non-U.S. 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

      $1,048.80  $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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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.


    Table of Contents

    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.

     

    ** 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.

     

    26 Non-U.S. Fund


    Table of Contents

    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


    Table of Contents

    Russell Investment Funds

    Core Bond 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

      $1,059.60  $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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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

      BRL300    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

      EUR200    283

    Hellas Telecommunications
    Luxembourg V (Ê)
    Series REGS
    4.935% due 10/15/12

      EUR125    117

    Impress Holdings BV (Ê)
    Series REGS
    5.737% due 09/15/13

      EUR125    153

    Societe Financement de l’Economie Francaise
    2.125% due 05/20/12

      EUR100    140

    UBS AG (Å)
    Zero coupon due 12/31/2017

      EUR270    56
           
          1,622
           

     

    Core Bond Fund 41


    Table of Contents

    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)

      USD6,000    —
    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    Russell Investment Funds

    Real Estate Securities 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

      $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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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.

     

    ** 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.

     

    54 Real Estate Securities Fund


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

    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


    Table of Contents

     

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    Table of Contents

    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


    Table of Contents

     

    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


    Table of Contents

    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


    Table of Contents

     

    </
    $
    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