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Russell Investment Funds

Filed: 26 Aug 09, 8:00pm
Table of Contents

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

 

 

Investment Company Act file number:

  811-05371

 

 

 

 

 

 

 

Russell Investment Funds

(Exact name of registrant as specified in charter)

 

909 A Street, Tacoma Washington 98402
(Address of principal executive offices) (Zip code)

 

 

Gregory J. Lyons, Assistant Secretary

Russell Investment Funds

909 A Street

Tacoma, Washington 98402

253-439-2406

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 253-572-9500

 

Date of fiscal year end: December 31

 

Date of reporting period: January 1, 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
9.30 (37.76 303,416 .96 .96 2.72 71
15.22 (15.86 488,809 .92 .92 1.75 77
21.34 35.84   625,477 .90 .91 1.86 53
17.28 12.96   443,092 .91 .91 1.86 64