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


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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05371

Russell Investment Funds

(Exact name of registrant as specified in charter)

909 A Street, Tacoma Washington 98402

(Address of principal executive offices) (Zip code)

Mary Beth Rhoden, 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, 2010 – June 30, 2010

Item 1.

Reports to Stockholders

LOGO

2010 SEMI-ANNUAL REPORT

Russell Investment Funds

JUNE 30, 2010

FUND

Multi-Style Equity Fund

Aggressive Equity Fund

Non-U.S. Fund

Core Bond Fund

Real Estate Securities Fund

LOGO

Russell Investment Funds

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

Russell Investment Funds

Semi-annual Report

June 30, 2010 (Unaudited)

Table of Contents


		Page
Multi-Style Equity Fund		3
Aggressive Equity Fund		10
Non-U.S. Fund		20
Core Bond Fund		31
Real Estate Securities Fund		56
Notes to Schedules of Investments		62
Statements of Assets and Liabilities		63
Statements of Operations		65
Statements of Changes in Net Assets		66
Financial Highlights		68
Notes to Financial Highlights		70
Notes to Financial Statements		71
Basis for Approval of Investment Advisory Contracts		89
Shareholder Requests for Additional Information		94
Disclosure of Information about Fund Trustees and Officers		95
Adviser, Money Managers and Service Providers		100

Russell Investment Funds

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

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

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

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

Russell Investment Funds

Multi-Style Equity Fund

Shareholder Expense Example — June 30, 2010 (Unaudited)

Fund Expenses

The following disclosure provides important information regarding the Fund’s Expense Example, which appears on the Fund’s individual page in this Semi-Annual Report. Please refer to this information when reviewing the Expense Example for this 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, 2010 to June 30, 2010.

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, 2010	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2010	$	935.80	$	1,020.43
Expenses Paid During Period*	$	4.22	$	4.41

*	Expenses are equal to the Fund’s annualized expense ratio of 0.88% (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).


Multi-Style Equity Fund		3

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Common Stocks - 97.6%
Consumer Discretionary - 12.4%
Abercrombie & Fitch Co. Class A	2,000	61
Amazon.com, Inc. (Æ)	22,472	2,455
Avon Products, Inc.	15,500	411
Bed Bath & Beyond, Inc. (Æ)	20,860	774
Best Buy Co., Inc.	18,589	629
BJ’s Wholesale Club, Inc. (Æ)	3,900	144
CarMax, Inc. (Æ)	11,600	231
CBS Corp. Class B	110,909	1,434
Comcast Corp. Class A	95,106	1,652
Costco Wholesale Corp.	29,800	1,634
Ctrip.com International, Ltd. - ADR (Æ)	7,400	278
Darden Restaurants, Inc.	26,400	1,026
eBay, Inc. (Æ)	13,100	257
Estee Lauder Cos., Inc. (The) Class A	13,662	761
Expedia, Inc.	1,700	32
Foot Locker, Inc.	13,700	173
Ford Motor Co. (Æ)(Ñ)	128,767	1,298
Harman International Industries, Inc. (Æ)	2,900	87
Home Depot, Inc.	56,905	1,597
Hyatt Hotels Corp. (Æ)	5,300	197
IAC/InterActiveCorp (Æ)	4,200	92
JC Penney Co., Inc.	1,800	39
Johnson Controls, Inc.	46,350	1,245
Kohl’s Corp. (Æ)	27,444	1,304
Las Vegas Sands Corp. (Æ)(Ñ)	52,400	1,160
Lennar Corp. Class A	15,488	215
Lowe’s Cos., Inc.	103,700	2,118
McDonald’s Corp.	33,900	2,233
NetFlix, Inc. (Æ)	2,800	304
Nike, Inc. Class B	16,700	1,128
priceline.com, Inc. (Æ)	4,266	753
Pulte Group, Inc. (Æ)	20,160	167
Rent-A-Center, Inc. Class A (Æ)	4,700	95
Stanley Black & Decker, Inc.	3,990	202
Starbucks Corp.	47,025	1,143
Starwood Hotels & Resorts Worldwide, Inc. (ö)	6,900	286
Target Corp.	13,900	684
Tech Data Corp. (Æ)	6,300	224
Tiffany & Co.	16,900	641
Time Warner Cable, Inc.	8,500	443
Time Warner, Inc.	18,000	520
TJX Cos., Inc.	32,529	1,365
Viacom, Inc. Class B	88,400	2,773
Wal-Mart Stores, Inc.	85,253	4,098
Walt Disney Co. (The)	57,500	1,811
Wendy’s/Arby’s Group, Inc.	17,300	69
Whirlpool Corp.	2,700	237
Yum! Brands, Inc.	24,900	972

		41,452


Consumer Staples - 10.0%
Archer-Daniels-Midland Co.	23,200	599
Campbell Soup Co.	16,100	577
Clorox Co.	4,300	267


	Principal Amount ($) or Shares		Market Value $
Coca-Cola Co. (The)	114,712		5,749
Colgate-Palmolive Co.	44,571		3,510
Constellation Brands, Inc. Class A (Æ)	12,700		198
Corn Products International, Inc.	20,800		630
Flowers Foods, Inc.	6,000		147
Hansen Natural Corp. (Æ)	600		24
Kellogg Co.	58,643		2,950
Kimberly-Clark Corp.	12,000		728
Kraft Foods, Inc. Class A	16,200		454
Kroger Co. (The)	6,400		126
Lorillard, Inc.	6,600		475
Molson Coors Brewing Co. Class B	33,950		1,438
PepsiCo, Inc.	128,243		7,816
Philip Morris International, Inc.	13,100		601
Procter & Gamble Co. (The)	66,746		4,003
Ralcorp Holdings, Inc. (Æ)	15,300		838
Reynolds American, Inc.	4,600		240
Safeway, Inc.	46,700		918
Sanderson Farms, Inc.	1,400		71
SUPERVALU, Inc.	11,300		123
Whole Foods Market, Inc. (Æ)	30,561		1,101

			33,583


Energy - 10.2%
Anadarko Petroleum Corp.	7,800		282
Apache Corp.	15,850		1,334
Cameron International Corp. (Æ)	22,300		725
Chevron Corp.	58,100		3,943
ConocoPhillips	72,000		3,535
Devon Energy Corp.	17,832		1,086
Dynegy, Inc. Class A (Æ)	7,880		30
EOG Resources, Inc.	17,500		1,722
Exxon Mobil Corp.	26,500		1,512
Hess Corp.	17,100		861
Marathon Oil Corp.	131,547		4,090
Massey Energy Co.	10,200		279
Murphy Oil Corp.	6,900		342
NextEra Energy, Inc.	23,400	��	1,141
Noble Energy, Inc.	1,300		79
Occidental Petroleum Corp.	80,230		6,190
Pioneer Natural Resources Co.	22,140		1,316
Pride International, Inc. (Æ)	10,400		232
Rowan Cos., Inc. (Æ)	4,800		105
Royal Dutch Shell PLC - ADR	14,500		728
Schlumberger, Ltd.	23,900		1,323
Southwestern Energy Co. (Æ)	22,900		885
Statoil ASA - ADR	36,000		689
Sunoco, Inc.	14,500		504
Tesoro Corp.	3,800		44
Valero Energy Corp.	19,700		354
Williams Cos., Inc. (The)	38,805		709

			34,040


Financial Services - 15.3%
Aflac, Inc.	31,550		1,346
Allied World Assurance Co. Holdings, Ltd.	3,100		141
Allstate Corp. (The)	36,900		1,060


4		Multi-Style Equity Fund

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

American Express Co.	32,313	1,283
American Financial Group, Inc.	2,100	57
Ameriprise Financial, Inc.	6,900	249
AON Corp.	32,850	1,219
Aspen Insurance Holdings, Ltd.	10,900	270
Assurant, Inc.	10,400	361
Axis Capital Holdings, Ltd.	5,700	169
Bank of America Corp.	144,559	2,077
Bank of Hawaii Corp.	3,600	174
Bank of New York Mellon Corp. (The)	33,300	822
BB&T Corp.	35,700	939
Berkshire Hathaway, Inc. Class B (Æ)	3,000	239
BlackRock, Inc. Class A	900	129
Camden Property Trust (ö)	7,800	319
Capital One Financial Corp.	42,976	1,732
Charles Schwab Corp. (The)	26,800	380
Chimera Investment Corp. (ö)	108,900	393
Citigroup, Inc. (Æ)	300,300	1,129
City National Corp.	2,800	143
Comerica, Inc.	10,400	383
Commerce Bancshares, Inc.	3,000	108
Cullen/Frost Bankers, Inc.	1,500	77
Discover Financial Services	24,400	341
Endurance Specialty Holdings, Ltd.	7,000	263
Equity Residential (ö)	3,600	150
Everest Re Group, Ltd.	1,500	106
Federated Investors, Inc. Class B (Ñ)	24,900	516
Fifth Third Bancorp	66,500	817
First Horizon National Corp. (Æ)	10,534	121
Franklin Resources, Inc.	3,300	284
Fulton Financial Corp.	14,600	141
Goldman Sachs Group, Inc. (The)	2,879	378
Hartford Financial Services Group, Inc.	27,400	606
Hudson City Bancorp, Inc.	60,400	739
JPMorgan Chase & Co.	125,651	4,600
KeyCorp	75,300	579
Legg Mason, Inc.	5,800	163
Lincoln National Corp.	38,700	940
Marsh & McLennan Cos., Inc.	35,300	796
Mastercard, Inc. Class A	4,985	995
Mercury General Corp.	15,000	622
MetLife, Inc.	31,000	1,171
Moody’s Corp.	23,400	466
Morgan Stanley	40,950	951
New York Community Bancorp, Inc.	12,500	191
NewAlliance Bancshares, Inc.	9,300	104
Northern Trust Corp.	18,500	864
NYSE Euronext	7,400	205
PartnerRe, Ltd. - ADR	4,600	323
People’s United Financial, Inc.	56,900	768
Plum Creek Timber Co., Inc. (ö)	18,200	628
PNC Financial Services Group, Inc.	7,700	435
ProLogis (ö)	19,600	199
Prosperity Bancshares, Inc.	4,900	170
Prudential Financial, Inc.	27,300	1,465
Regions Financial Corp.	27,800	183
SL Green Realty Corp. (ö)	2,400	132


	Principal Amount ($) or Shares	Market Value $
State Street Corp.	25,100	849
SunTrust Banks, Inc.	69,700	1,624
Transatlantic Holdings, Inc.	4,900	235
Travelers Cos., Inc. (The)	8,500	419
US Bancorp	82,300	1,839
Valley National Bancorp	42,439	578
Verisk Analytics, Inc. (Æ)	322	10
Visa, Inc.	42,544	3,010
Washington Federal, Inc.	6,100	99
Wells Fargo & Co.	205,159	5,252
White Mountains Insurance Group, Ltd.	500	162
Wilmington Trust Corp. (Ñ)	22,900	254
XL Group PLC	12,000	192

		51,134


Health Care - 11.0%
Abbott Laboratories	83,362	3,900
Aetna, Inc.	3,300	87
Allergan, Inc.	24,600	1,433
AMERIGROUP Corp. Class A (Æ)	1,500	49
Amgen, Inc. (Æ)	42,063	2,212
Baxter International, Inc.	20,000	813
Boston Scientific Corp. (Æ)	64,200	372
Cardinal Health, Inc.	3,800	128
Celgene Corp. (Æ)	11,900	605
Cerner Corp. (Æ)	5,600	425
Covance, Inc. (Æ)	11,500	590
Coventry Health Care, Inc. (Æ)	12,100	214
Covidien PLC	36,900	1,483
Eli Lilly & Co. (Ñ)	11,600	389
Express Scripts, Inc. Class A (Æ)	15,400	724
Forest Laboratories, Inc. (Æ)	13,400	368
Healthspring, Inc. (Æ)	2,100	33
Hill-Rom Holdings, Inc.	3,400	103
Hologic, Inc. (Æ)	8,200	114
Hospira, Inc. (Æ)	17,000	977
Humana, Inc. (Æ)	8,600	393
Illumina, Inc. (Æ)	7,700	335
Intuitive Surgical, Inc. (Æ)	3,357	1,059
Johnson & Johnson	17,600	1,039
King Pharmaceuticals, Inc. (Æ)	31,200	237
Life Technologies Corp. (Æ)	7,300	345
Lincare Holdings, Inc.	13,500	439
Medtronic, Inc.	25,616	929
Merck & Co., Inc.	197,900	6,921
Pfizer, Inc.	195,400	2,786
Sanofi-Aventis SA - ADR	72,650	2,184
Stryker Corp.	27,300	1,367
Teleflex, Inc.	8,200	445
Teva Pharmaceutical Industries, Ltd. - ADR	6,600	343
Thermo Fisher Scientific, Inc. (Æ)	20,003	981
UnitedHealth Group, Inc.	10,400	295
Watson Pharmaceuticals, Inc. Class B (Æ)	5,500	223
WellPoint, Inc. (Æ)	8,500	416
Zimmer Holdings, Inc. (Æ)	23,200	1,254

		37,010


Multi-Style Equity Fund		5

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Materials and Processing - 5.5%
Agnico-Eagle Mines, Ltd. (Þ)	2,500	152
Air Products & Chemicals, Inc.	26,400	1,711
Airgas, Inc.	4,061	253
Allegheny Technologies, Inc. (Ñ)	8,400	371
Cytec Industries, Inc.	4,700	188
Dow Chemical Co. (The)	51,600	1,224
Ecolab, Inc.	6,100	274
Freeport-McMoRan Copper & Gold, Inc. Class B	2,900	172
Huntsman Corp.	71,200	617
International Flavors & Fragrances, Inc.	6,300	267
Masco Corp.	75,100	808
MeadWestvaco Corp.	8,600	191
Newmont Mining Corp.	64,191	3,963
Nucor Corp.	19,100	731
Owens-Illinois, Inc. (Æ)	30,550	808
Pactiv Corp. (Æ)	19,848	553
Potash Corp. of Saskatchewan, Inc.	4,400	379
PPG Industries, Inc.	5,800	350
Praxair, Inc.	34,382	2,613
Sealed Air Corp.	48,800	962
Teck Resources, Ltd. Class B	16,600	491
United States Steel Corp.	5,700	220
Valspar Corp.	7,500	226
Vulcan Materials Co. (Ñ)	20,800	912

		18,436


Producer Durables - 11.2%
3M Co.	32,100	2,536
Accenture PLC Class A	29,600	1,144
AGCO Corp. (Æ)	9,000	243
Automatic Data Processing, Inc.	20,400	821
Avery Dennison Corp.	14,900	479
Boeing Co. (The)	9,000	565
Caterpillar, Inc.	58,077	3,489
CSX Corp.	6,900	342
Cummins, Inc.	30,552	1,990
Danaher Corp.	24,000	891
Deere & Co.	11,334	631
Delta Air Lines, Inc. (Æ)	57,300	673
Emerson Electric Co.	16,100	703
Empresa Brasileira de Aeronautica SA - ADR	34,600	725
FedEx Corp.	13,600	953
Fluor Corp.	19,500	829
General Dynamics Corp.	11,400	668
General Electric Co.	133,200	1,921
Goodrich Corp.	8,600	570
Harsco Corp.	21,100	496
Honeywell International, Inc.	95,798	3,739
Joy Global, Inc.	13,200	661
L-3 Communications Holdings, Inc. Class 3	4,600	326
Lexmark International, Inc. Class A (Æ)	10,900	360
Lincoln Electric Holdings, Inc.	1,800	92
Lockheed Martin Corp.	10,400	775
Manpower, Inc.	13,800	596


	Principal Amount ($) or Shares	Market Value $
Norfolk Southern Corp.	500	26
Northrop Grumman Corp.	7,400	403
PACCAR, Inc.	17,700	706
Pitney Bowes, Inc.	33,900	744
Regal-Beloit Corp.	1,900	106
Robert Half International, Inc.	19,400	457
Rockwell Automation, Inc.	8,300	407
SPX Corp.	9,500	502
SunPower Corp. (Æ)	48,800	527
Teekay Corp.	4,700	123
Terex Corp. (Æ)	4,400	82
Textron, Inc.	25,550	434
Tidewater, Inc.	17,300	670
UAL Corp. (Æ)(Ñ)	11,800	243
Union Pacific Corp.	5,300	368
United Parcel Service, Inc. Class B	59,862	3,405
URS Corp. (Æ)	6,600	260
Waste Management, Inc.	19,800	619
Watts Water Technologies, Inc. Class A	2,100	60
Werner Enterprises, Inc.	8,700	190

		37,550


Technology - 18.1%
Advanced Micro Devices, Inc. (Æ)	16,800	123
Altera Corp.	13,600	337
Amdocs, Ltd. (Æ)	5,800	156
Amphenol Corp. Class A	23,459	921
AOL, Inc. (Æ)	15,700	326
Apple, Inc. (Æ)	29,572	7,438
Applied Materials, Inc.	70,200	844
Baidu, Inc. - ADR (Æ)	7,000	477
Benchmark Electronics, Inc. (Æ)	4,100	65
Broadcom Corp. Class A	78,694	2,595
Check Point Software Technologies, Ltd. (Æ)	16,300	481
Cisco Systems, Inc. (Æ)	236,933	5,049
Cognizant Technology Solutions Corp. Class A (Æ)	16,833	843
Computer Sciences Corp.	7,500	339
Cree, Inc. (Æ)	3,700	222
Dell, Inc. (Æ)	74,200	895
Diebold, Inc.	13,200	360
Electronic Arts, Inc. Series C (Æ)	12,800	184
Equinix, Inc. (Æ)	4,000	325
F5 Networks, Inc. (Æ)	13,200	905
Google, Inc. Class A (Æ)	10,270	4,570
Harris Corp.	9,100	379
Hewlett-Packard Co.	149,097	6,453
Intel Corp.	35,900	698
International Business Machines Corp.	17,654	2,180
Juniper Networks, Inc. (Æ)	19,600	447
Lam Research Corp. (Æ)	9,800	373
Linear Technology Corp.	32,500	904
LSI Corp. (Æ)	37,700	173
Marvell Technology Group, Ltd. (Æ)	36,032	568
Maxim Integrated Products, Inc.	42,900	718
Micron Technology, Inc. (Æ)	49,200	418


6		Multi-Style Equity Fund

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Microsoft Corp.	111,166	2,558
Molex, Inc.	14,800	270
Motorola, Inc. (Æ)	57,700	376
National Semiconductor Corp.	67,300	906
NetApp, Inc. (Æ)	37,290	1,391
Nokia OYJ - ADR	41,400	337
Oracle Corp.	56,500	1,213
Plexus Corp. (Æ)	700	19
QUALCOMM, Inc.	146,398	4,808
Research In Motion, Ltd. (Æ)	25,500	1,256
Salesforce.com, Inc. (Æ)	8,300	712
SanDisk Corp. (Æ)	10,700	450
Seagate Technology (Æ)	36,300	473
Synopsys, Inc. (Æ)	13,200	275
Tellabs, Inc.	44,600	285
Texas Instruments, Inc.	142,601	3,320
Tyco Electronics, Ltd.	33,049	839
VMware, Inc. Class A (Æ)	3,600	225

		60,479


Utilities - 3.9%
Ameren Corp.	12,800	304
American Electric Power Co., Inc.	17,400	562
American Water Works Co., Inc.	31,700	653
AT&T, Inc.	10,400	252
Atmos Energy Corp.	5,700	154
BCE, Inc.	50,900	1,490
CenterPoint Energy, Inc.	36,900	486
CenturyLink, Inc.	9,900	330
Consolidated Edison, Inc.	9,200	396
Constellation Energy Group, Inc.	6,000	193
Edison International	11,600	368
Energen Corp.	3,800	168
Entergy Corp.	5,000	358
Exelon Corp.	11,700	444
Frontier Communications Corp. (Ñ)	57,200	407
Great Plains Energy, Inc.	28,300	482
MDU Resources Group, Inc.	35,700	644
NII Holdings, Inc. (Æ)	6,900	224
NiSource, Inc.	23,500	341
NV Energy, Inc.	22,600	267
Pepco Holdings, Inc.	29,200	458
PG&E Corp.	8,100	333
Pinnacle West Capital Corp.	9,400	342
PNM Resources, Inc.	7,400	83
PPL Corp.	12,800	319
Progress Energy, Inc.	10,100	396
Telephone & Data Systems, Inc.	3,800	115
Veolia Environnement - ADR	15,200	355
Vodafone Group PLC - ADR	86,100	1,780
Westar Energy, Inc.	10,000	216

		12,920


Total Common Stocks (cost $318,492)		326,604


	Principal Amount ($) or Shares	Market Value $
Short-Term Investments - 2.5%
Russell U.S. Cash Management Fund (£)	8,335,452	8,335


Total Short-Term Investments (cost $8,335)		8,335


Other Securities - 0.5%
State Street Securities Lending Quality Trust (×)	1,787,986	1,782


Total Other Securities (cost $1,788)		1,782


Total Investments - 100.6% (identified cost $328,615)		336,721

Other Assets and Liabilities, Net - (0.6%)		(1,993	)


Net Assets - 100.0%		334,728

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


Multi-Style Equity Fund		7

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except contracts)


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

Long Postitions
Russell 1000 Mini Index	22	USD	1,243	09/10	(33)
S&P 500 E-Mini Index (CME)	74	USD	3,798	09/10	(182)
S&P 500 Index (CME)	7	USD	1,797	09/10	(67)
S&P Midcap 400 E-Mini Index (CME)	8	USD	568	09/10	(30)


Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)					(312)

Presentation of Portfolio Holdings — June 30, 2010 (Unaudited)

Amounts in thousands


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

Common Stock
Consumer Discretionary	$	41,452		$	—	$	—	$	41,452		12.4
Consumer Staples		33,583			—		—		33,583		10.0
Energy		34,040			—		—		34,040		10.2
Financial Services		51,134			—		—		51,134		15.3
Health Care		37,010			—		—		37,010		11.0
Materials and Processing		18,436			—		—		18,436		5.5
Producer Durables		37,550			—		—		37,550		11.2
Technology		60,479			—		—		60,479		18.1
Utilities		12,920			—		—		12,920		3.9
Short-Term Investments		—			8,335		—		8,335		2.5
Other Securities		—			1,782		—		1,782		0.5


Total Investments		326,604			10,117		—		336,721		100.6

Other Assets and Liabilities, Net											(0.6	)


											100.0


Other Financial Instruments
Futures Contracts		(312	)		—		—		(312	)	(0.1	)


Total Other Financial Instruments*		(312	)		—		—		(312	)

*	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.

For a description of the levels see note 2 in the Notes to Financial Statements.

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


8		Multi-Style Equity Fund

Russell Investment Funds

Multi-Style Equity Fund

Fair Value of Derivative Instruments — June 30, 2010 (Unaudited)

Amounts in thousands


Derivatives not accounted for as hedging instruments	Equity Contracts

Location: Statement of Assets and Liabilities - Liabilities
Daily variation margin on futures contracts*	$	312


Derivatives not accounted for as hedging instruments	Equity Contracts
Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	(729	)


Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	(675	)

*	Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities.

For further disclosure on derivatives see note 2 in Notes to Financial Statements.

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


Multi-Style Equity Fund		9

Russell Investment Funds

Aggressive Equity Fund

Shareholder Expense Example — June 30, 2010 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes

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

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


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2010	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2010	$	962.90	$	1,019.59
Expenses Paid During Period*	$	5.11	$	5.26

Expenses are equal to the Fund’s annualized expense ratio of 1.05% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher.


10		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Common Stocks - 96.7%
Consumer Discretionary - 14.0%
99 Cents Only Stores (Æ)	31,460	466
ABM Industries, Inc.	15,200	318
America’s Car-Mart, Inc. (Æ)	9,610	217
Arctic Cat, Inc. (Æ)	1,800	16
Asbury Automotive Group, Inc. (Æ)	17,531	185
Autoliv, Inc.	5,400	258
Barnes & Noble, Inc.	4,200	55
Bebe Stores, Inc.	26,500	170
BJ’s Wholesale Club, Inc. (Æ)	7,400	274
Blyth, Inc.	900	31
Bob Evans Farms, Inc.	4,900	121
Brown Shoe Co., Inc.	4,700	71
Build-A-Bear Workshop, Inc. Class A (Æ)	3,900	26
Callaway Golf Co.	51,846	313
Capella Education Co. (Æ)	1,595	130
Career Education Corp. (Æ)	2,800	64
Carter’s, Inc. (Æ)	17,657	463
Chico’s FAS, Inc.	49,915	493
Christopher & Banks Corp.	32,772	203
Clear Channel Outdoor Holdings, Inc. Class A (Æ)	4,300	37
Columbia Sportswear Co.	7,438	347
Core-Mark Holding Co., Inc. (Æ)	1,700	47
Corinthian Colleges, Inc. (Æ)(Ñ)	7,600	75
Cracker Barrel Old Country Store, Inc.	1,200	56
CROCS, Inc. (Æ)	32,529	344
Ctrip.com International, Ltd. - ADR (Æ)	6,458	243
Darden Restaurants, Inc.	8,500	330
DeVry, Inc.	3,786	199
Dick’s Sporting Goods, Inc. (Æ)	16,921	421
Dillard’s, Inc. Class A (Ñ)	33,100	712
Dollar Tree, Inc. (Æ)	15,600	649
DSW, Inc. Class A (Æ)	7,269	163
Elizabeth Arden, Inc. (Æ)	3,100	45
Expedia, Inc.	25,502	479
Fastenal Co. (Ñ)	8,917	448
Finish Line, Inc. (The) Class A	34,935	487
Foot Locker, Inc.	39,550	499
Fossil, Inc. (Æ)	8,900	309
Fred’s, Inc. Class A	9,153	101
Grand Canyon Education, Inc. (Æ)	8,343	195
Group 1 Automotive, Inc. (Æ)(Ñ)	4,700	111
Guess?, Inc.	7,526	235
Gymboree Corp. (Æ)	5,450	233
Harman International Industries, Inc. (Æ)	11,655	348
Haverty Furniture Cos., Inc.	1,300	16
Hillenbrand, Inc.	14,000	299
HOT Topic, Inc.	8,200	42
Hyatt Hotels Corp. (Æ)	2,100	78
IAC/InterActiveCorp (Æ)	10,124	222
Inter Parfums, Inc.	1,200	17
Jakks Pacific, Inc. (Æ)	5,800	83
Jo-Ann Stores, Inc. (Æ)	7,000	263
Jones Apparel Group, Inc.	10,200	162
Kenneth Cole Productions, Inc. Class A (Æ)	25,027	276


	Principal Amount ($) or Shares	Market Value $
Leapfrog Enterprises, Inc. Class A (Æ)	6,200	25
Lifetime Brands, Inc. (Æ)(Ñ)	1,500	22
LKQ Corp. (Æ)	27,623	533
MarineMax, Inc. (Æ)(Ñ)	11,900	83
Men’s Wearhouse, Inc. (The)	9,200	169
Meredith Corp.	8,700	271
MGM Resorts International (Æ)(Ñ)	22,398	216
Movado Group, Inc. (Æ)	3,700	39
MSC Industrial Direct Co. Class A	4,816	244
Multimedia Games, Inc. (Æ)	2,100	9
OfficeMax, Inc. (Æ)	19,662	257
Orient-Express Hotels, Ltd. Class A (Æ)	8,626	64
Panera Bread Co. Class A (Æ)	2,910	219
PetSmart, Inc.	6,400	193
PF Chang’s China Bistro, Inc. (Ñ)	6,848	272
Phillips-Van Heusen Corp.	4,700	217
Pricesmart, Inc.	5,700	132
Red Robin Gourmet Burgers, Inc. (Æ)	3,200	55
Rent-A-Center, Inc. Class A (Æ)	27,100	549
Ryland Group, Inc.	3,400	54
Scholastic Corp.	5,400	130
Service Corp. International	20,900	155
Shoe Carnival, Inc. (Æ)	1,400	29
Skechers U.S.A., Inc. Class A (Æ)	9,800	358
Sonic Automotive, Inc. Class A (Æ)(Ñ)	4,800	41
Stage Stores, Inc.	30,700	328
Steven Madden, Ltd. (Æ)	22,764	717
Stewart Enterprises, Inc. Class A (Ñ)	52,300	283
Superior Industries International, Inc. (Ñ)	18,225	245
Tech Data Corp. (Æ)	14,700	524
Tempur-Pedic International, Inc. (Æ)	10,282	316
Thor Industries, Inc.	3,274	78
Under Armour, Inc. Class A (Æ)	6,410	212
Urban Outfitters, Inc. (Æ)	10,080	347
Warnaco Group, Inc. (The) (Æ)	6,709	242
Washington Post Co. (The) Class B	400	164
WESCO International, Inc. (Æ)	2,100	71
WMS Industries, Inc. (Æ)	5,454	214
Wolverine World Wide, Inc.	12,200	308
Wyndham Worldwide Corp.	5,500	111

		20,941


Consumer Staples - 2.7%
Alberto-Culver Co. Class B	10,930	296
Alliance One International, Inc. (Æ)	23,967	85
Andersons, Inc. (The)	14,768	481
Church & Dwight Co., Inc.	4,930	309
Corn Products International, Inc.	14,600	443
Del Monte Foods Co.	34,900	502
Lance, Inc.	20,700	341
Nash Finch Co.	3,300	113
Ralcorp Holdings, Inc. (Æ)	2,499	137
Seneca Foods Corp. Class A (Æ)	1,000	32
Spartan Stores, Inc.	4,600	63
SUPERVALU, Inc.	25,900	281
TreeHouse Foods, Inc. (Æ)(Ñ)	10,980	502
Tyson Foods, Inc. Class A	25,209	413


Aggressive Equity Fund		11

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Winn-Dixie Stores, Inc. (Æ)	2,900	28

		4,026


Energy - 5.4%
Allis-Chalmers Energy, Inc. (Æ)	3,400	7
Alpha Natural Resources, Inc. (Æ)	9,108	308
Berry Petroleum Co. Class A	16,900	435
Complete Production Services, Inc. (Æ)	18,510	265
Comstock Resources, Inc. (Æ)	8,346	231
Continental Resources, Inc. (Æ)	5,070	226
Core Laboratories NV (Ñ)	2,628	388
Dawson Geophysical Co. (Æ)	1,300	28
Dril-Quip, Inc. (Æ)	7,330	323
Dynegy, Inc. Class A (Æ)	16,620	64
EXCO Resources, Inc.	27,380	400
Exterran Holdings, Inc. (Æ)	12,226	316
Frontier Oil Corp.	18,600	250
Gulf Island Fabrication, Inc.	2,200	34
Helix Energy Solutions Group, Inc. (Æ)	12,729	137
Matrix Service Co. (Æ)	1,700	16
Oceaneering International, Inc. (Æ)	2,217	99
Oil States International, Inc. (Æ)	12,700	503
Ormat Technologies, Inc. (Ñ)	11,900	337
Parker Drilling Co. (Æ)	2,500	10
Patterson-UTI Energy, Inc.	27,348	352
Penn Virginia Corp.	8,100	163
Petroleum Development Corp. (Æ)	5,100	131
Precision Drilling Corp. (Æ)	34,851	231
Rosetta Resources, Inc. (Æ)	22,440	444
Rowan Cos., Inc. (Æ)	10,541	231
RPC, Inc. (Ñ)	13,300	181
Sunoco, Inc.	8,277	288
Swift Energy Co. (Æ)	4,500	121
Tesoro Corp.	18,500	216
Tetra Technologies, Inc. (Æ)	3,300	30
Unit Corp. (Æ)(Ñ)	9,861	400
W&T Offshore, Inc. (Ñ)	37,200	352
Walter Energy, Inc. Class A	3,346	204
Whiting Petroleum Corp. (Æ)	3,989	313
Willbros Group, Inc. (Æ)	7,400	55

		8,089


Financial Services - 19.4%
Advance America Cash Advance Centers, Inc.	6,100	25
Affiliated Managers Group, Inc. (Æ)	13,605	827
American Equity Investment Life Holding Co.	35,320	365
American Financial Group, Inc.	11,400	311
Ameriprise Financial, Inc.	6,594	238
Apollo Commercial Real Estate Finance, Inc. (ö)	1,500	25
Apollo Investment Corp.	17,700	165
Arch Capital Group, Ltd. (Æ)	3,900	291
Ares Capital Corp.	52,471	657
Argo Group International Holdings, Ltd.	3,800	116
Artio Global Investors, Inc. Class A	24,500	386


	Principal Amount ($) or Shares	Market Value $
Aspen Insurance Holdings, Ltd.	11,100	275
Assurant, Inc.	2,200	76
Banco Latinoamericano de Comercio Exterior SA Class E	3,300	41
BancorpSouth, Inc.	16,400	293
Banner Corp. (Ñ)	2,000	4
BGC Partners, Inc. Class A	6,200	32
BioMed Realty Trust, Inc. (ö)	16,770	270
BOK Financial Corp.	14,500	688
Boston Private Financial Holdings, Inc.	43,569	280
Brookline Bancorp, Inc. (Ñ)	19,400	172
Camden Property Trust (ö)	5,200	212
CapLease, Inc. (ö)(Ñ)	1,100	5
Chimera Investment Corp. (ö)	58,500	211
City National Corp.	5,900	302
Cogdell Spencer, Inc. (ö)	36,300	245
Colonial Properties Trust (ö)	40,600	590
CommonWealth REIT (ö)	14,300	89
Community Bank System, Inc.	11,000	242
Community Trust Bancorp, Inc. (Ñ)	1,000	25
CreXus Investment Corp. (ö)	1,300	16
Cullen/Frost Bankers, Inc.	800	41
CVB Financial Corp. (Ñ)	25,200	239
DCT Industrial Trust, Inc. (ö)	20,400	92
Delphi Financial Group, Inc. Class A	9,300	227
DiamondRock Hospitality Co. (ö)	47,479	390
Dime Community Bancshares	11,000	136
Duff & Phelps Corp. Class A	29,700	375
Education Realty Trust, Inc. (ö)	2,700	16
Endurance Specialty Holdings, Ltd.	6,600	248
Evercore Partners, Inc. Class A	900	21
Extra Space Storage, Inc. (ö)	8,200	114
Ezcorp, Inc. Class A (Æ)	24,774	460
FBL Financial Group, Inc. Class A	1,800	38
FBR Capital Markets Corp. (Æ)	5,100	17
Federal Realty Investment Trust (ö)	4,200	295
FelCor Lodging Trust, Inc. (Æ)(ö)	12,100	60
First Horizon National Corp. (Æ)	25,443	291
First Industrial Realty Trust, Inc. (Æ)(ö)	7,900	38
First Mercury Financial Corp.	2,000	21
First Niagara Financial Group, Inc.	7,900	99
First Potomac Realty Trust (ö)	4,400	63
FirstMerit Corp.	17,600	302
Flagstone Reinsurance Holdings SA	3,600	39
Flushing Financial Corp.	2,500	31
FPIC Insurance Group, Inc. (Æ)	900	23
Franklin Street Properties Corp. (ö)	27,533	325
Fulton Financial Corp.	32,900	318
Glacier Bancorp, Inc.	19,000	279
Global Payments, Inc.	4,908	179
Greenhill & Co., Inc.	3,954	242
Hancock Holding Co.	11,600	387
Hercules Technology Growth Capital, Inc.	3,900	36
Hersha Hospitality Trust (ö)	38,800	175
Hilltop Holdings, Inc. (Æ)	5,200	52
Home Bancshares, Inc.	2,750	63
Horace Mann Educators Corp.	5,700	87
Hospitality Properties Trust (ö)	7,500	158


12		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Huntington Bancshares, Inc.	39,900	221
Iberiabank Corp.	12,300	633
Independent Bank Corp. (Ñ)	5,300	131
Infinity Property & Casualty Corp.	1,100	51
IntercontinentalExchange, Inc. (Æ)	2,817	318
Invesco Mortgage Capital, Inc. (ö)	28,000	560
Investment Technology Group, Inc. (Æ)	1,900	31
JER Investors Trust, Inc. (Æ)(Å)	1,771	—
Kilroy Realty Corp. (ö)	9,000	268
Knight Capital Group, Inc. Class A (Æ)	20,823	287
LaSalle Hotel Properties (ö)	12,997	267
Lazard, Ltd. Class A	17,700	473
Lexington Realty Trust (ö)(��)	18,655	112
Mack-Cali Realty Corp. (ö)	7,300	217
MarketAxess Holdings, Inc.	11,920	164
Meadowbrook Insurance Group, Inc.	2,885	25
Medical Properties Trust, Inc. (ö)	66,714	630
MFA Financial, Inc. (ö)	38,300	283
Montpelier Re Holdings, Ltd.	15,800	236
MSCI, Inc. Class A (Æ)	12,232	335
MVC Capital, Inc.	1,300	17
Nelnet, Inc. Class A	8,800	170
NewAlliance Bancshares, Inc.	24,800	278
OceanFirst Financial Corp.	1,700	21
Och-Ziff Capital Management Group LLC	17,846	225
Old National Bancorp	34,900	362
OneBeacon Insurance Group, Ltd. Class A	2,800	40
Park National Corp. (Ñ)	2,900	189
Parkway Properties, Inc. (ö)	2,400	35
PartnerRe, Ltd. - ADR	5,500	386
PennantPark Investment Corp.	40,514	387
Pennymac Mortgage Investment Trust (Æ)(ö)	2,000	32
Piper Jaffray Cos. (Æ)	8,498	274
Platinum Underwriters Holdings, Ltd.	6,300	229
Post Properties, Inc. (ö)	11,300	257
Presidential Life Corp.	1,000	9
Prosperity Bancshares, Inc.	16,100	560
Protective Life Corp.	5,700	122
Provident New York Bancorp	1,800	16
PS Business Parks, Inc. (ö)	2,300	128
Raymond James Financial, Inc.	12,997	321
Regency Centers Corp. (ö)	4,500	155
Renasant Corp.	1,500	22
Republic Bancorp, Inc. Class A	1,100	25
Resource Capital Corp. (ö)	44,713	254
SeaBright Holdings, Inc.	2,700	26
Selective Insurance Group, Inc.	15,700	233
Signature Bank NY (Æ)	9,060	344
Simmons First National Corp. Class A	700	18
SL Green Realty Corp. (ö)	4,700	259
Southside Bancshares, Inc.	735	14
Sovran Self Storage, Inc. (ö)	2,200	76
StanCorp Financial Group, Inc.	5,700	231
StellarOne Corp. (Ñ)	25,087	320
Sterling Bancorp Class N	4,000	36
Sterling Bancshares, Inc.	70,400	332


	Principal Amount ($) or Shares	Market Value $
Susquehanna Bancshares, Inc.	13,600	113
SVB Financial Group (Æ)(Ñ)	10,370	428
SWS Group, Inc.	25,800	245
Symetra Financial Corp.	21,200	254
Texas Capital Bancshares, Inc. (Æ)	15,619	256
Textainer Group Holdings, Ltd.	19,673	475
Tower Group, Inc.	14,523	313
Transatlantic Holdings, Inc.	3,800	182
Trustmark Corp.	19,800	412
UMB Financial Corp.	7,900	281
Umpqua Holdings Corp.	21,700	249
United Financial Bancorp, Inc.	1,500	20
Washington Federal, Inc.	15,648	253
Webster Financial Corp.	7,600	136
Westamerica Bancorporation (Ñ)	200	11
Western Alliance Bancorp (Æ)	3,400	24
White Mountains Insurance Group, Ltd.	400	130
Whitney Holding Corp.	25,847	239
Wilshire Bancorp, Inc. (Ñ)	1,700	15
Wintrust Financial Corp.	700	23
WSFS Financial Corp.	500	18

		29,173


Health Care - 12.0%
Affymetrix, Inc. (Æ)	8,300	49
Albany Molecular Research, Inc. (Æ)	29,617	153
Allscripts-Misys Healthcare Solutions, Inc. (Æ)	6,706	108
Amedisys, Inc. (Æ)	7,922	348
Analogic Corp.	9,630	438
Angiodynamics, Inc. (Æ)	2,700	40
Assisted Living Concepts, Inc. (Æ)	5,400	160
Brookdale Senior Living, Inc. (Æ)	20,369	306
Catalyst Health Solutions, Inc. (Æ)	5,936	205
Centene Corp. (Æ)	9,900	213
Cerner Corp. (Æ)	4,150	315
Conmed Corp. (Æ)	11,622	216
Coventry Health Care, Inc. (Æ)	32,055	567
Cynosure, Inc. Class A (Æ)	19,720	212
Emergency Medical Services Corp. Class A (Æ)	6,140	301
Gentiva Health Services, Inc. (Æ)	8,045	217
Greatbatch, Inc. (Æ)	14,236	318
Harvard Bioscience, Inc. (Æ)	49,156	175
Health Management Associates, Inc. Class A (Æ)	55,310	430
Health Net, Inc. (Æ)	27,300	665
Healthsouth Corp. (Æ)	11,697	219
Healthspring, Inc. (Æ)	38,555	598
Hill-Rom Holdings, Inc.	5,302	161
HMS Holdings Corp. (Æ)(Ñ)	10,450	567
Humana, Inc. (Æ)	10,200	466
Icon PLC - ADR (Æ)	26,159	756
IDEXX Laboratories, Inc. (Æ)(Ñ)	5,858	357
Illumina, Inc. (Æ)	8,936	389
Impax Laboratories, Inc. (Æ)	8,200	156
Invacare Corp.	5,700	118


Aggressive Equity Fund		13

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Kindred Healthcare, Inc. (Æ)	17,058	219
King Pharmaceuticals, Inc. (Æ)	36,900	280
LHC Group, Inc. (Æ)	7,300	203
Life Technologies Corp. (Æ)	7,000	331
LifePoint Hospitals, Inc. (Æ)	4,300	135
Magellan Health Services, Inc. (Æ)	4,800	174
MedAssets, Inc. (Æ)	9,200	212
Medicines Co. (The) (Æ)	8,800	67
Mednax, Inc. (Æ)	4,212	234
Meridian Bioscience, Inc.	21,300	362
Molina Healthcare, Inc. (Æ)(Ñ)	5,200	150
Nabi Biopharmaceuticals (Æ)	5,700	31
NuVasive, Inc. (Æ)(Ñ)	11,160	396
Omnicare, Inc.	13,800	327
OSI Systems, Inc. (Æ)	9,856	274
Par Pharmaceutical Cos., Inc. (Æ)	20,800	540
Patterson Cos., Inc.	12,383	353
PerkinElmer, Inc.	35,681	737
Perrigo Co.	3,950	233
PharMerica Corp. (Æ)	4,600	67
RehabCare Group, Inc. (Æ)	17,921	390
Res-Care, Inc. (Æ)	1,000	10
Salix Pharmaceuticals, Ltd. (Æ)	5,876	229
Sun Healthcare Group, Inc. Class W (Æ)	7,600	61
SXC Health Solutions Corp. (Æ)	11,270	826
Symmetry Medical, Inc. (Æ)	15,858	167
Techne Corp.	4,228	243
Teleflex, Inc.	2,800	152
TomoTherapy, Inc. (Æ)	1,300	4
United Therapeutics Corp. (Æ)	6,710	327
Universal American Corp. (Æ)	7,500	108
Universal Health Services, Inc. Class B	6,200	237
Viropharma, Inc. (Æ)	26,100	293
Vital Images, Inc. (Æ)	400	5
Watson Pharmaceuticals, Inc. Class B (Æ)	4,600	187
West Pharmaceutical Services, Inc.	7,200	263

		18,050


Materials and Processing - 7.2%
A Schulman, Inc.	10,600	201
Aceto Corp.	1,000	6
Albemarle Corp.	9,130	363
Apogee Enterprises, Inc.	21,000	227
Arch Chemicals, Inc.	7,500	231
Ashland, Inc.	11,300	524
Brady Corp. Class A	9,700	242
Cabot Corp.	14,621	352
CF Industries Holdings, Inc.	6,200	393
Clarcor, Inc.	7,950	282
Comfort Systems USA, Inc.	9,800	95
Commercial Metals Co.	31,600	418
Cytec Industries, Inc.	23,626	945
Ferro Corp. (Æ)	36,591	270
Gibraltar Industries, Inc. (Æ)	6,000	61
Griffon Corp. (Æ)	5,000	55
Haynes International, Inc.	1,200	37
HB Fuller Co.	11,200	213


	Principal Amount ($) or Shares	Market Value $
Headwaters, Inc. (Æ)	12,800	36
Horsehead Holding Corp. (Æ)	21,354	161
Huntsman Corp.	23,700	205
Innospec, Inc. (Æ)	1,700	16
Interline Brands, Inc. (Æ)	12,300	213
International Flavors & Fragrances, Inc.	5,600	238
Kaiser Aluminum Corp.	15,500	537
Koppers Holdings, Inc.	16,000	360
Minerals Technologies, Inc.	8,900	423
Mueller Water Products, Inc. Class A	52,000	193
Neenah Paper, Inc.	1,800	33
Olympic Steel, Inc.	2,200	50
OM Group, Inc. (Æ)	15,634	373
Pan American Silver Corp.	10,209	258
PolyOne Corp. (Æ)	12,800	108
Quanex Building Products Corp.	9,000	156
Reliance Steel & Aluminum Co.	4,400	159
RPM International, Inc.	15,892	283
RTI International Metals, Inc. (Æ)	9,244	223
Scotts Miracle-Gro Co. (The) Class A	6,585	292
Simpson Manufacturing Co., Inc.	3,000	74
Sims Metal Management, Ltd. - ADR	13,536	192
Steel Dynamics, Inc.	2,544	34
SuperGen, Inc. (Æ)	4,200	8
Thompson Creek Metals Co., Inc. (Æ)	20,622	179
Timken Co.	2,700	70
Titanium Metals Corp. (Æ)(Ñ)	9,116	160
Universal Forest Products, Inc.	8,800	267
Watsco, Inc.	4,457	258
Westlake Chemical Corp. (Ñ)	5,000	93
WR Grace & Co. (Æ)	12,548	264

		10,831


Producer Durables - 16.3%
AAR Corp. (Æ)	7,000	117
Actuant Corp. Class A	14,872	280
AGCO Corp. (Æ)	24,162	652
Albany International Corp. Class A	3,000	49
Alexander & Baldwin, Inc.	16,033	477
AM Castle & Co. (Æ)	1,200	17
American Railcar Industries, Inc. (Æ)	1,300	16
AO Smith Corp.	5,600	270
Applied Industrial Technologies, Inc.	17,600	446
Arkansas Best Corp.	6,500	135
Astec Industries, Inc. (Æ)	8,293	230
Avery Dennison Corp.	800	26
Barnes Group, Inc.	15,000	246
BE Aerospace, Inc. (Æ)	9,100	231
Briggs & Stratton Corp.	25,600	436
Brink’s Co. (The)	13,200	251
Bristow Group, Inc. (Æ)	2,857	84
Bucyrus International, Inc. Class A	4,620	219
CAI International, Inc. (Æ)	11,000	131
Carlisle Cos., Inc.	2,300	83
CDI Corp.	2,000	31
Celadon Group, Inc. (Æ)	1,200	17
Ceradyne, Inc. (Æ)	11,209	239


14		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Chart Industries, Inc. (Æ)	13,593	212
Compass Diversified Holdings	15,700	210
Consolidated Graphics, Inc. (Æ)	2,280	99
Convergys Corp. (Æ)	1,700	17
Copart, Inc. (Æ)	10,857	389
CoreLogic, Inc. (Æ)	13,600	240
Corporate Executive Board Co. (The)	8,000	210
Crane Co.	2,800	85
Cross Country Healthcare, Inc. (Æ)	2,800	25
Cubic Corp.	2,300	84
Curtiss-Wright Corp.	12,600	366
Dycom Industries, Inc. (Æ)	2,500	21
Eagle Bulk Shipping, Inc. (Æ)(Ñ)	9,000	38
Electro Rent Corp.	14,905	191
Electronics for Imaging, Inc. (Æ)	3,352	33
EMCOR Group, Inc. (Æ)	5,300	123
EnerSys (Æ)	10,290	220
Ennis, Inc.	1,600	24
EnPro Industries, Inc. (Æ)	8,186	230
Esterline Technologies Corp. (Æ)	8,400	399
Flowserve Corp.	800	68
Foster Wheeler AG (Æ)	15,869	334
Franklin Electric Co., Inc.	11,200	323
G&K Services, Inc. Class A	13,400	277
GATX Corp.	13,900	371
Genesee & Wyoming, Inc. Class A (Æ)	10,638	397
Granite Construction, Inc. (Ñ)	13,100	309
Harsco Corp.	1,100	26
Heidrick & Struggles International, Inc.	2,400	55
Hewitt Associates, Inc. Class A (Æ)	14,200	489
HUB Group, Inc. Class A (Æ)	16,120	484
IDEX Corp.	9,542	273
Insituform Technologies, Inc. Class A (Æ)(Ñ)	8,092	166
JB Hunt Transport Services, Inc.	8,324	272
Joy Global, Inc.	8,695	435
Kadant, Inc. (Æ)	1,000	17
Kansas City Southern (Æ)	4,600	167
KBR, Inc.	13,957	284
Kelly Services, Inc. Class A (Æ)	3,100	46
Kennametal, Inc.	10,516	267
Kforce, Inc. (Æ)	3,300	42
Knight Transportation, Inc. (Ñ)	15,132	306
Layne Christensen Co. (Æ)	11,515	279
Lexmark International, Inc. Class A (Æ)	10,500	347
Littelfuse, Inc. (Æ)	4,400	139
M&F Worldwide Corp. (Æ)	5,000	135
Manitowoc Co., Inc. (The) (Ñ)	11,000	100
Manpower, Inc.	6,347	274
MAXIMUS, Inc.	900	52
McDermott International, Inc. (Æ)	16,801	364
Measurement Specialties, Inc. (Æ)	1,100	15
NACCO Industries, Inc. Class A	800	71
Nalco Holding Co.	9,043	185
Nordson Corp.	1,600	90
On Assignment, Inc. (Æ)	2,200	11
Oshkosh Corp. (Æ)	14,700	458


	Principal Amount ($) or Shares	Market Value $
Overseas Shipholding Group, Inc. (Ñ)	6,400	237
Pacer International, Inc. (Æ)	7,100	50
PHI, Inc. (Æ)	10,308	145
Robbins & Myers, Inc.	11,952	260
Robert Half International, Inc.	11,767	277
Roper Industries, Inc.	12,647	708
RR Donnelley & Sons Co.	27,200	445
Ryder System, Inc.	5,300	213
Saia, Inc. (Æ)	2,400	36
Sensata Technologies Holding NV (Æ)	15,589	249
SFN Group, Inc. (Æ)	6,800	37
Shaw Group, Inc. (The) (Æ)	9,100	311
Skywest, Inc.	32,200	393
Southwest Airlines Co.	19,649	218
SPX Corp.	2,587	137
Standard Register Co. (The)	300	1
Steelcase, Inc. Class A	38,300	297
TAL International Group, Inc.	13,200	297
Teekay Corp.	4,000	105
Terex Corp. (Æ)	13,300	249
Trinity Industries, Inc. (Ñ)	14,600	259
Triumph Group, Inc.	11,900	793
Tsakos Energy Navigation, Ltd. (Ñ)	27,200	385
Tutor Perini Corp. (Æ)	8,600	142
Unifirst Corp.	7,179	316
URS Corp. (Æ)	14,009	551
UTi Worldwide, Inc.	22,940	284
Wabtec Corp. (Ñ)	14,706	587
Waters Corp. (Æ)	2,400	155
Watts Water Technologies, Inc. Class A	2,800	80
Werner Enterprises, Inc.	10,000	219
Woodward Governor Co.	7,989	204

		24,467


Technology - 15.7%
Acxiom Corp. (Æ)	26,457	389
ADC Telecommunications, Inc. (Æ)	10,600	79
ADTRAN, Inc.	14,123	385
Advanced Micro Devices, Inc. (Æ)	16,300	119
Amdocs, Ltd. (Æ)	5,800	156
Amkor Technology, Inc. (Æ)	21,300	117
Amphenol Corp. Class A	18,212	715
Anadigics, Inc. (Æ)	3,700	16
Ansys, Inc. (Æ)	15,159	615
AOL, Inc. (Æ)	8,500	177
ArcSight, Inc. (Æ)	21,222	475
Ariba, Inc. (Æ)	38,022	606
Arris Group, Inc. (Æ)	7,000	71
Arrow Electronics, Inc. (Æ)	12,800	286
Aruba Networks, Inc. (Æ)	14,537	207
Atheros Communications, Inc. (Æ)	6,160	170
Aviat Networks, Inc. (Æ)	10,800	39
Avid Technology, Inc. (Æ)	3,900	50
Avnet, Inc. (Æ)	17,000	410
AVX Corp.	30,500	391
Benchmark Electronics, Inc. (Æ)	17,851	283
Black Box Corp.	3,000	84


Aggressive Equity Fund		15

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Ciber, Inc. (Æ)	4,100	11
Cirrus Logic, Inc. (Æ)	9,600	152
Cogent, Inc. (Æ)	17,437	157
Cognex Corp.	5,700	100
Coherent, Inc. (Æ)	13,133	450
Cohu, Inc.	16,950	206
Concur Technologies, Inc. (Æ)	9,435	403
CSG Systems International, Inc. (Æ)	17,837	327
Digi International, Inc. (Æ)	2,000	17
DSP Group, Inc. (Æ)	1,700	11
Earthlink, Inc. (Ñ)	71,700	571
Electro Scientific Industries, Inc. (Æ)	34,678	463
Emcore Corp. (Æ)(Ñ)	5,300	5
Emulex Corp. (Æ)	16,381	150
Epicor Software Corp. (Æ)	4,900	39
Equinix, Inc. (Æ)	6,632	539
Extreme Networks (Æ)	13,800	37
F5 Networks, Inc. (Æ)	4,165	286
Fairchild Semiconductor International, Inc. Class A (Æ)	24,800	209
Flextronics International, Ltd. (Æ)(Ñ)	22,870	128
Hittite Microwave Corp. (Æ)	6,179	276
Imation Corp. (Æ)	4,000	37
Informatica Corp. (Æ)(Ñ)	30,067	718
Infospace, Inc. (Æ)	3,800	29
Ingram Micro, Inc. Class A (Æ)	16,900	257
Integrated Device Technology, Inc. (Æ)	22,300	110
Integrated Silicon Solution, Inc. (Æ)	31,000	234
Internap Network Services Corp. (Æ)	20,700	86
International Rectifier Corp. (Æ)	22,750	423
Intersil Corp. Class A	39,354	477
Intevac, Inc. (Æ)	2,000	21
Lam Research Corp. (Æ)	6,311	240
Lattice Semiconductor Corp. (Æ)	86,900	377
LSI Corp. (Æ)	50,900	234
MEMC Electronic Materials, Inc. (Æ)	17,856	176
Methode Electronics, Inc.	10,500	102
MICROS Systems, Inc. (Æ)	14,013	447
Microsemi Corp. (Æ)	18,700	274
Molex, Inc. (Ñ)	15,500	283
National Semiconductor Corp.	21,789	293
Ness Technologies, Inc. (Æ)	4,100	18
Netlogic Microsystems, Inc. (Æ)	8,220	224
Newport Corp. (Æ)	3,900	35
NICE Systems, Ltd. - ADR (Æ)	18,173	463
Novellus Systems, Inc. (Æ)	14,600	370
Perceptron, Inc. (Æ)	2,154	9
Plexus Corp. (Æ)	1,700	45
QLogic Corp. (Æ)	33,816	562
Radisys Corp. (Æ)	1,900	18
RealNetworks, Inc. (Æ)	12,700	42
Rovi Corp. (Æ)	25,030	949
Salesforce.com, Inc. (Æ)(Ñ)	5,460	469
SBA Communications Corp. Class A (Æ)(Ñ)	12,627	429
Seachange International, Inc. (Æ)	2,600	21
Sigma Designs, Inc. (Æ)(Ñ)	4,900	49
Silicon Image, Inc. (Æ)	12,200	43
Skyworks Solutions, Inc. (Æ)	21,270	357


	Principal Amount ($) or Shares	Market Value $
Smith Micro Software, Inc. (Æ)	23,201	221
SolarWinds, Inc. (Æ)(Ñ)	14,033	225
Standard Microsystems Corp. (Æ)	3,300	77
SuccessFactors, Inc. (Æ)	16,726	348
Sycamore Networks, Inc. (Æ)	2,600	43
Symmetricom, Inc. (Æ)	3,000	15
Synopsys, Inc. (Æ)	7,800	163
Taleo Corp. Class A (Æ)	14,649	356
Tekelec (Æ)	12,991	172
Tellabs, Inc.	101,250	647
THQ, Inc. (Æ)	11,800	51
Tier Technologies, Inc. Class B (Æ)	24,577	149
Trident Microsystems, Inc. (Æ)	8,800	12
Unisys Corp. (Æ)	5,600	104
United Online, Inc.	81,157	467
Varian Semiconductor Equipment Associates, Inc. (Æ)	6,966	200
VeriFone Systems, Inc. (Æ)	31,391	594
Verint Systems, Inc. (Æ)	5,209	120
Vishay Intertechnology, Inc. (Æ)	35,719	276
Zoran Corp. (Æ)	5,300	51

		23,589


Utilities - 4.0%
Allete, Inc.	13,100	449
Atmos Energy Corp.	9,700	262
Central Vermont Public Service Corp.	1,000	20
Chesapeake Utilities Corp.	700	22
DPL, Inc.	2,800	67
Energen Corp.	5,700	253
Idacorp, Inc.	7,800	259
Integrys Energy Group, Inc. (Ñ)	3,700	162
Laclede Group, Inc. (The)	1,000	33
MDU Resources Group, Inc.	11,600	209
Mirant Corp. (Æ)	2,700	29
New Jersey Resources Corp.	5,050	178
NII Holdings, Inc. (Æ)	7,232	235
NorthWestern Corp.	2,300	60
NV Energy, Inc.	21,400	253
Otter Tail Corp.	20,300	392
Piedmont Natural Gas Co., Inc.	9,600	243
Pinnacle West Capital Corp.	9,800	356
PNM Resources, Inc.	16,100	180
Portland General Electric Co.	33,800	620
Southern Union Co.	10,700	234
Southwest Gas Corp.	6,200	183
Telephone & Data Systems, Inc.	5,800	176
UGI Corp.	15,500	394
UIL Holdings Corp.	3,000	75
US Cellular Corp. (Æ)	2,300	95
Vectren Corp.	12,800	303
Westar Energy, Inc.	13,200	285

		6,027


Total Common Stocks (cost $142,999)		145,193


16		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Short-Term Investments - 3.0%
Russell U.S. Cash Management Fund (£)	4,561,979	4,562


Total Short-Term Investments (cost $4,562)		4,562


Other Securities - 5.6%
State Street Securities Lending Quality Trust (×)	8,380,991	8,352


Total Other Securities (cost $8,381)		8,352


Total Investments - 105.3% (identified cost $155,942)		158,107

Other Assets and Liabilities, Net - (5.3%)		(7,973	)


Net Assets - 100.0%		150,134

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


Aggressive Equity Fund		17

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2010 (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)	81	USD 4,923	09/10	(113)

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)				(113)

Presentation of Portfolio Holdings — June 30, 2010 (Unaudited)

Amounts in thousands


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

Common Stock
Consumer Discretionary	$	20,941		$	—	$	—	$	20,941		14.0
Consumer Staples		4,026			—		—		4,026		2.7
Energy		8,089			—		—		8,089		5.4
Financial Services		29,173			—		—		29,173		19.4
Health Care		18,050			—		—		18,050		12.0
Materials and Processing		10,831			—		—		10,831		7.2
Producer Durables		24,467			—		—		24,467		16.3
Technology		23,589			—		—		23,589		15.7
Utilities		6,027			—		—		6,027		4.0
Short-Term Investments		—			4,562		—		4,562		3.0
Other Securities		—			8,352		—		8,352		5.6


Total Investments		145,193			12,914		—		158,107		105.3

Other Assets and Liabilities, Net											(5.3	)

											100.0


Other Financial Instruments
Futures Contracts		(113	)		—		—		(113	)	(0.1	)

Total Other Financial Instruments**		(113	)		—		—		(113	)

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.

For a description of the levels see note 2 in the Notes to Financial Statements.

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


18		Aggressive Equity Fund

Russell Investment Funds

Aggressive Equity Fund

Fair Value of Derivative Instruments — June 30, 2010 (Unaudited)

Amounts in thousands


Derivatives not accounted for as hedging instruments	Equity Contracts

Location: Statement of Assets and Liabilities - Liabilities
Daily variation margin on futures contracts*	$	113


Derivatives not accounted for as hedging instruments	Equity Contracts
Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	409


Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	(490	)

*	Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities.

For further disclosure on derivatives see note 2 in Notes to Financial Statements.

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


Aggressive Equity Fund		19

Russell Investment Funds

Non-U.S. Fund

Shareholder Expense Example — June 30, 2010 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2010	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2010	$	882.90	$	1,019.49
Expenses Paid During
Period*	$	5.00	$	5.36

Expenses are equal to the Fund’s annualized expense ratio of 1.07% (representing the one-half year period annualized), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Reflects amounts waived and/or reimbursed. Without the waiver and/or reimbursement, expenses would have been higher.


20		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares		Market Value $

Common Stocks - 90.9%
Australia - 0.4%
Billabong International, Ltd. (Ñ)	172,300		1,255


Austria - 0.1%
Erste Group Bank AG	9,913		315


Belgium - 0.8%
Anheuser-Busch InBev NV	33,616		1,615
KBC Groep NV (Æ)	17,798		682

			2,297


Bermuda - 2.4%
Esprit Holdings, Ltd.	229,404		1,237
Jardine Matheson Holdings, Ltd.	67,700		2,366
Li & Fung, Ltd.	484,000		2,166
Noble Group, Ltd. (Ñ)	285,908		345
RenaissanceRe Holdings, Ltd.	13,200		743

			6,857


Brazil - 1.7%
Banco Santander Brasil SA - ADR	37,130		384
Cyrela Brazil Realty SA Empreendimentos e Participacoes	36,000		389
Gafisa SA	54,300		325
OGX Petroleo e Gas Participacoes SA (Æ)	179,300		1,661
PDG Realty SA Empreendimentos e Participacoes	140,500		1,186
Vale SA (Ñ) Class B	38,400		935

			4,880
		��

Canada - 1.9%
Canadian National Railway Co.	60,914		3,495
Gildan Activewear, Inc. Class A (Æ)(Ñ)	10,714		307
Magna International, Inc. Class A	7,236		477
Research In Motion, Ltd. (Æ)	13,780		679
Teck Resources, Ltd. Class B	15,570		461

			5,419


Cayman Islands - 0.3%
Alibaba.com, Ltd. (Ñ)	140,500		277
Ctrip.com International, Ltd. - ADR (Æ)	17,500		658

			935


China - 0.6%
Baidu, Inc. - ADR (Æ)	9,960		678
Ping An Insurance Group Co. of China, Ltd. Class H (Å)	81,500		657
Tencent Holdings, Ltd.	32,700		539

			1,874


Czech Republic - 0.2%
Komercni Banka AS	2,687		434


	Principal Amount ($) or Shares	Market Value $

Denmark - 0.7%
Danske Bank A/S (Æ)	26,851	516
Novo Nordisk A/S Series B	12,444	1,004
Novozymes A/S Class B	5,053	536

		2,056


Finland - 0.8%
Fortum OYJ	26,700	588
Nokia OYJ	54,510	445
Pohjola Bank PLC Class A	139,625	1,421

		2,454


France - 9.0%
Accor SA (Ñ)	23,388	1,074
Air France-KLM (Æ)	47,506	559
Air Liquide SA	13,613	1,367
AXA SA	105,005	1,592
BNP Paribas	5,969	319
Capital Gemini SA	14,600	638
Carrefour SA	6,700	265
CNP Assurances	7,816	532
Credit Agricole SA (Ñ)	80,710	826
Danone	19,973	1,067
GDF Suez	16,359	463
Lagardere SCA	31,681	982
Legrand SA	21,189	624
LVMH Moet Hennessy Louis Vuitton SA (Ñ)	23,742	2,586
Natixis (Æ)	88,458	380
Pernod-Ricard SA (Ñ)	22,887	1,770
Publicis Groupe SA (Ñ)	40,782	1,621
Rallye SA	46,585	1,403
Sanofi-Aventis SA	26,282	1,585
Schneider Electric SA	33,697	3,411
SCOR SE	38,280	732
Total SA	21,814	971
UBISOFT Entertainment (Æ)	85,845	639
Vivendi SA	45,000	910

		26,316


Germany - 8.1%
Adidas AG	19,194	927
BASF SE	36,866	2,011
Bayer AG	21,622	1,206
Beiersdorf AG	21,420	1,178
Daimler AG (Æ)	31,597	1,600
Deutsche Boerse AG	15,500	942
E.ON AG	55,841	1,503
Henkel AG & Co. KGaA	16,462	672
Infineon Technologies AG (Æ)	122,920	710
Linde AG	23,560	2,474
MAN SE	20,055	1,653
Merck KGaA	11,140	812
Metro AG	25,081	1,275
MTU Aero Engines Holding AG	38,371	2,135


Non-U.S. Fund		21

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Muenchener Rueckversicherungs AG	4,499	563
SAP AG	13,660	607
Siemens AG	27,164	2,431
ThyssenKrupp AG	25,916	637
Volkswagen AG	3,800	322

		23,658


Guernsey - 0.2%
Amdocs, Ltd. (Æ)	23,200	623


Hong Kong - 1.4%
CNOOC, Ltd.	798,000	1,360
Hang Lung Properties, Ltd. - ADR	157,000	602
Industrial & Commercial Bank of China Asia, Ltd.	803,000	2,122

		4,084


India - 1.3%
ICICI Bank, Ltd. - ADR	52,634	1,902
Infosys Technologies, Ltd. - ADR (Ñ)	22,050	1,321
Reliance Industries, Ltd. - GDR (Þ)	15,100	705

		3,928


Ireland - 0.7%
Accenture PLC Class A	16,900	653
Cooper Industries PLC	14,275	628
Covidien PLC	16,600	667

		1,948


Israel - 0.7%
Teva Pharmaceutical Industries, Ltd. - ADR	39,573	2,057


Italy - 2.9%
Banca Popolare di Milano Scarl	120,935	499
ENI SpA	59,007	1,083
Finmeccanica SpA	191,247	1,985
Parmalat SpA	714,070	1,659
Snam Rete Gas SpA	292,525	1,163
UniCredit SpA	606,641	1,346
Unione di Banche Italiane SCPA	76,620	659

		8,394


Japan - 12.6%
Aeon Credit Service Co., Ltd.	28,700	255
Amada Co., Ltd.	146,700	963
Canon, Inc.	125,000	4,660
Dai-ichi Life Insurance Co., Ltd. (The)	500	688
Daikin Industries, Ltd.	10,300	314
FamilyMart Co., Ltd. (Ñ)	25,600	844
Fanuc, Ltd.	8,000	898
Hirose Electric Co., Ltd. (Ñ)	3,000	274
Honda Motor Co., Ltd. (Ñ)	23,000	668
Hoya Corp.	63,300	1,344
Inpex Corp.	200	1,112
ITOCHU Corp.	204,600	1,595


	Principal Amount ($) or Shares	Market Value $
Japan Tobacco, Inc.	200	622
Konica Minolta Holdings, Inc.	42,500	409
Lawson, Inc.	20,500	896
Mabuchi Motor Co., Ltd. (Ñ)	28,700	1,314
Marubeni Corp.	257,000	1,317
Mitsubishi Chemical Holdings Corp. (Ñ)	221,000	1,006
Mitsubishi UFJ Financial Group, Inc.	138,800	629
Mizuho Financial Group, Inc. (Ñ)	496,200	814
Mori Seiki Co., Ltd. (Ñ)	72,600	728
MS&AD Insurance Group Holdings	40,000	854
NGK Spark Plug Co., Ltd.	27,000	335
Nintendo Co., Ltd.	6,300	1,835
Nissan Motor Co., Ltd.	87,400	606
Nomura Holdings, Inc.	74,500	408
NTT DoCoMo, Inc.	900	1,361
NTT DoCoMo, Inc. - ADR	2,050	31
Omron Corp.	61,500	1,330
Panasonic Corp.	50,200	627
Shin-Etsu Chemical Co., Ltd.	23,200	1,079
Sumco Corp. (Ñ)	23,800	396
Sumitomo Mitsui Financial Group, Inc.	38,000	1,073
Takeda Pharmaceutical Co., Ltd.	34,000	1,455
THK Co., Ltd.	50,500	1,044
Tokyo Electric Power Co., Inc. (The)	28,300	770
Tokyo Electron, Ltd.	2,600	140
Toshiba TEC Corp.	304,379	982
Toyota Motor Corp.	28,700	987
Yahoo! Japan Corp. (Ñ)	495	197

		36,860


Luxembourg - 0.6%
ArcelorMittal	31,273	832
Millicom International Cellular SA	12,600	1,021

		1,853


Mexico - 0.1%
America Movil SAB de CV Series L	5,350	254


Netherlands - 5.0%
Aegon NV (Æ)	166,382	891
Akzo Nobel NV	52,729	2,728
Brit Insurance Holdings NV	61,059	822
European Aeronautic Defence and Space Co. NV (Æ)(Ñ)	59,190	1,208
Fugro NV (Ñ)	5,750	263
Heineken NV	48,970	2,076
ING Groep NV (Æ)	249,281	1,851
Koninklijke Philips Electronics NV	44,880	1,338
Randstad Holding NV (Æ)	16,530	651
TNT NV	34,562	871
Unilever NV	24,650	672
Wolters Kluwer NV	61,490	1,173

		14,544


22		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Norway - 1.2%
DnB NOR ASA	135,000	1,299
Statoil ASA	43,000	829
Telenor ASA	97,100	1,220

		3,348


Russia - 0.4%
Gazprom OAO - ADR	66,670	1,254


Singapore - 2.2%
CapitaLand, Ltd. (Ñ)	382,000	974
Jardine Cycle & Carriage, Ltd.	132,200	2,806
Singapore Telecommunications, Ltd.	447,000	965
United Overseas Bank, Ltd.	109,400	1,520

		6,265


South Africa - 0.2%
MTN Group, Ltd.	38,440	504


South Korea - 0.3%
Samsung Electronics Co., Ltd.	1,581	993


Spain - 2.0%
Banco Bilbao Vizcaya Argentaria SA (Ñ)	101,959	1,052
Banco Santander SA	206,192	2,167
Inditex SA	35,422	2,009
Indra Sistemas SA (Ñ)	18,000	288
Red Electrica Corp. SA (Ñ)	7,163	256

		5,772


Sweden - 1.2%
Assa Abloy AB Class B	15,399	307
Skandinaviska Enskilda Banken AB Class A	55,751	296
Svenska Cellulosa AB Class B	45,000	529
Telefonaktiebolaget LM Ericsson Class B (Ñ)	204,946	2,282

		3,414


Switzerland - 9.6%
ACE, Ltd.	19,550	1,006
Actelion, Ltd. (Æ)	8,530	318
Cie Financiere Richemont SA	29,486	1,026
Clariant AG (Æ)	53,200	674
Credit Suisse Group AG	41,843	1,573
GAM Holding, Ltd. (Æ)	58,201	634
Georg Fischer AG (Æ)	5,303	1,729
Givaudan SA	1,226	1,036
Helvetia Holding AG	4,515	1,187
Julius Baer Group, Ltd.	41,452	1,180
Lonza Group AG (Ñ)	6,655	443
Nestle SA	97,778	4,718
Novartis AG	38,000	1,844
Roche Holding AG	20,972	2,880
Sonova Holding AG	3,393	416


	Principal Amount ($) or Shares	Market Value $
Swatch Group AG (The) Class B	4,519	1,265
Swiss Reinsurance Co., Ltd.	11,649	479
Syngenta AG	4,608	1,064
Tyco Electronics, Ltd.	64,750	1,643
UBS AG (Æ)	138,204	1,832
Zurich Financial Services AG	4,953	1,087

		28,034


Taiwan - 1.1%
Hon Hai Precision Industry Co., Ltd. (Æ)	366,000	1,286
Hon Hai Precision Industry Co., Ltd. - GDR (Æ)	62,650	452
HTC Corp.	54,000	716
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR	86,785	847

		3,301


Thailand - 0.3%
Bangkok Bank PCL	204,700	799


United Kingdom - 18.6%
Aegis Group PLC	755,902	1,198
Anglo American PLC (Æ)	43,074	1,497
Autonomy Corp. PLC (Æ)	35,064	946
Aviva PLC	214,921	999
BAE Systems PLC	195,600	909
Barclays PLC	788,110	3,124
BP PLC - ADR	6,700	193
BP PLC	555,647	2,669
Bunzl PLC	62,900	627
Burberry Group PLC	61,280	691
Cable & Wireless Worldwide PLC	622,700	798
Carillion PLC	213,025	971
Compass Group PLC	130,184	988
Dairy Crest Group PLC	160,609	884
Diageo PLC	107,641	1,687
Hays PLC	233,430	317
Home Retail Group PLC	131,403	415
HSBC Holdings PLC	731,779	6,676
Imperial Tobacco Group PLC	70,947	1,978
International Power PLC	149,687	663
Ladbrokes PLC	115,425	218
National Grid PLC	90,725	668
Reckitt Benckiser Group PLC	64,713	2,993
Reed Elsevier PLC	139,800	1,032
Rolls-Royce Group PLC (Æ)(Å)	117,172	976
Royal Bank of Scotland Group PLC (Æ)	991,298	597
Royal Dutch Shell PLC Class A	154,323	3,911
Sage Group PLC (The)	463,767	1,587
Smith & Nephew PLC	144,960	1,365
Smiths Group PLC	52,272	827
Spectris PLC	102,113	1,176
Standard Chartered PLC	114,095	2,770
Tesco PLC	241,842	1,362
Travis Perkins PLC (Æ)	119,200	1,297
Vodafone Group PLC	1,700,892	3,525


Non-U.S. Fund		23

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

William Hill PLC	108,497	274
Wolseley PLC (Æ)	13,916	272
WPP PLC	127,027	1,194

		54,274


United States - 1.3%
MercadoLibre, Inc. (Æ)	5,800	305
Philip Morris International, Inc.	44,000	2,017
Synthes, Inc. (Æ)	13,446	1,546

		3,868


Total Common Stocks (cost $280,399)		265,121


Preferred Stocks - 0.4%
Brazil - 0.1%
NET Servicos de Comunicacao SA (Æ)	15,200	143

Germany - 0.3%
Volkswagen AG	11,150	977


Total Preferred Stocks (cost $1,170)		1,120


	Principal Amount ($) or Shares	Market Value $
Short-Term Investments - 7.2%
United States - 7.2%
Russell U.S. Cash Management Fund (£)	20,891,543	20,892


Total Short-Term Investments (cost $20,892)		20,892


Other Securities - 3.7%
State Street Securities Lending Quality Trust (×)	10,910,675	10,872


Total Other Securities (cost $10,911)		10,872


Total Investments - 102.2% (identified cost $313,372)		298,005

Other Assets and Liabilities, Net - (2.2%)		(6,423	)


Net Assets - 100.0%		291,582

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


24		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except contracts)


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


Long Positions
CAC-40 Index (France)	70	EUR	2,409	07/10	(188)
DAX Index (Germany)	11	EUR	1,639	09/10	(71)
EUR STOXX 50 Index (EMU)	164	EUR	4,212	09/10	(280)
FTSE-100 Index (UK)	68	GBP	3,319	09/10	(323)
TOPIX Index (Japan)	100	JPY	838,500	09/10	(177)


Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)					(1,039)

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


Non-U.S. Fund		25

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands


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

Bank of America	USD	1,689	EUR	1,410	09/15/10	36
Bank of America	USD	846	GBP	584	09/15/10	26
Bank of America	USD	1,591	JPY	145,833	09/15/10	61
Bank of America	EUR	700	USD	856	09/15/10	—
Bank of America	GBP	150	USD	224	09/15/10	—
Bank of America	JPY	60,000	USD	679	09/15/10	—
Barclays Bank PLC	USD	1,688	EUR	1,410	09/15/10	37
Barclays Bank PLC	USD	80	GBP	53	07/02/10	(1	)
Barclays Bank PLC	USD	846	GBP	584	09/15/10	26
Barclays Bank PLC	CHF	20	USD	18	07/01/10	—
Barclays Bank PLC	GBP	66	USD	99	07/01/10	1
Brown Brothers Harriman Co.	USD	327	EUR	267	07/02/10	—
Brown Brothers Harriman Co.	USD	836	EUR	700	09/15/10	20
Brown Brothers Harriman Co.	USD	290	GBP	200	09/15/10	9
Brown Brothers Harriman Co.	CHF	9	USD	9	07/01/10	—
Brown Brothers Harriman Co.	EUR	12	USD	15	07/01/10	—
Brown Brothers Harriman Co.	EUR	12	USD	15	07/01/10	—
Brown Brothers Harriman Co.	EUR	39	USD	48	07/06/10	—
Brown Brothers Harriman Co.	EUR	61	USD	75	07/06/10	—
Brown Brothers Harriman Co.	EUR	68	USD	83	07/06/10	—
Credit Suisse First Boston	USD	102	EUR	83	07/01/10	(1	)
Credit Suisse First Boston	CHF	3	USD	3	07/06/10	—
HSBC	USD	1,689	EUR	1,410	09/15/10	36
HSBC	USD	846	GBP	584	09/15/10	26
HSBC	USD	1,590	JPY	145,833	09/15/10	62
JP Morgan	USD	178	EUR	145	07/01/10	(1	)
JP Morgan	USD	1,689	EUR	1,410	09/15/10	36
JP Morgan	USD	846	GBP	584	09/15/10	26
JP Morgan	USD	1,591	JPY	145,833	09/15/10	61
JP Morgan	SGD	107	USD	76	07/02/10	—
JP Morgan	SGD	11	USD	8	07/06/10	—
Mellon Bank	USD	1,689	EUR	1,410	09/15/10	36
Mellon Bank	USD	846	GBP	584	09/15/10	26
Mellon Bank	USD	1,591	JPY	145,833	09/15/10	62
Morgan Stanley	USD	20	GBP	14	07/01/10	1
Morgan Stanley	USD	143	JPY	12,651	07/01/10	—
Morgan Stanley	EUR	20	USD	26	07/01/10	1
Royal Bank of Canada	USD	1,590	JPY	145,833	09/15/10	62
Royal Bank of Scotland	USD	25	JPY	2,202	07/02/10	—
Royal Bank of Scotland	USD	116	HKD	901	07/02/10	—
Royal Bank of Scotland	CHF	9	USD	9	07/02/10	—
Societe Generale	USD	1,688	EUR	1,410	09/15/10	36
Societe Generale	USD	1,591	JPY	145,833	09/15/10	61
State Street Bank and Trust Company	USD	1	BRL	1	07/02/10	—
State Street Bank and Trust Company	USD	41	BRL	73	07/02/10	—
State Street Bank and Trust Company	USD	34	EUR	28	07/02/10	—
State Street Bank and Trust Company	USD	244	EUR	200	09/15/10	—
State Street Bank and Trust Company	USD	39	GBP	26	07/02/10	—
State Street Bank and Trust Company	USD	292	GBP	200	09/15/10	6
State Street Bank and Trust Company	USD	846	GBP	584	09/15/10	26
State Street Bank and Trust Company	USD	57	JPY	5,068	07/01/10	—
State Street Bank and Trust Company	BRL	63	USD	35	07/02/10	—
State Street Bank and Trust Company	EUR	1	USD	1	07/01/10	—

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


26		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands


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

State Street Bank and Trust Company	EUR	1	USD	1	07/01/10	—
State Street Bank and Trust Company	EUR	4	USD	5	07/01/10	—
State Street Bank and Trust Company	EUR	300	USD	366	09/15/10	(2	)
State Street Bank and Trust Company	GBP	18	USD	27	07/01/10	—
State Street Bank and Trust Company	GBP	200	USD	299	09/15/10	—
State Street Bank and Trust Company	HKD	458	USD	59	07/02/10	—
State Street Bank and Trust Company	JPY	344	USD	4	07/01/10	—
State Street Bank and Trust Company	JPY	550	USD	6	07/01/10	—
State Street Bank and Trust Company	JPY	3,280	USD	37	07/01/10	—
State Street Bank and Trust Company	JPY	5,773	USD	65	07/01/10	—
State Street Bank and Trust Company	SGD	44	USD	31	07/01/10	—
UBS	CHF	51	USD	47	07/02/10	—


Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Contracts						775

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


Non-U.S. Fund		27

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)


Industry Diversification	% of Net Assets		Market Value $


Consumer Discretionary	15.7		45,645
Consumer Staples	9.7		28,320
Energy	5.5		16,011
Financial Services	21.3		62,223
Health Care	5.5		15,949
Materials and Processing	8.8		25,584
Producer Durables	12.3		36,138
Technology	7.3		21,304
Utilities	5.2		15,067
Short-Term Investments	7.2		20,892
Other Securities	3.7		10,872


Total Investments	102.2		298,005
Other Assets and Liabilities, Net	(2.2	)	(6,423	)


Net Assets	100.0		291,582


Geographic Diversification	% of Net Assets		Market Value $

Africa	0.2		504
Asia	7.7		22,499
Europe	43.8		127,691
Japan	12.6		36,860
Latin America	4.5		13,069
Middle East	0.7		2,057
Other Regions	10.4		30,179
United Kingdom	18.6		54,274
Other Securities	3.7		10,872


Total Investments	102.2		298,005
Other Assets and Liabilities, Net	(2.2	)	(6,423	)


Net Assets	100.0		291,582

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


28		Non-U.S. Fund

Russell Investment Funds

Non-U.S. Fund

Presentation of Portfolio Holdings — June 30, 2010 (Unaudited)

(Amounts in thousands)


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

Common Stocks
Australia	$	—		$	1,255	$	—	$	1,255		0.4
Austria		—			315		—		315		0.1
Belgium		—			2,297		—		2,297		0.8
Bermuda		743			6,114		—		6,857		2.4
Brazil		4,880			—		—		4,880		1.7
Canada		5,419			—		—		5,419		1.9
Cayman Islands		658			277		—		935		0.3
China		678			539		657		1,874		0.6
Czech Republic		—			434		—		434		0.2
Denmark		—			2,056		—		2,056		0.7
Finland		—			2,454		—		2,454		0.8
France		—			26,316		—		26,316		9.0
Germany		322			23,336		—		23,658		8.1
Guernsey		623			—		—		623		0.2
Hong Kong		—			4,084		—		4,084		1.4
India		3,223			705		—		3,928		1.3
Ireland		1,948			—		—		1,948		0.7
Israel		2,057			—		—		2,057		0.7
Italy		—			8,394		—		8,394		2.9
Japan		31			36,829		—		36,860		12.6
Luxembourg		1,021			832		—		1,853		0.6
Mexico		254			—		—		254		0.1
Netherlands		—			14,544		—		14,544		5.0
Norway		—			3,348		—		3,348		1.2
Russia		—			1,254		—		1,254		0.4
Singapore		—			6,265		—		6,265		2.2
South Africa		—			504		—		504		0.2
South Korea		—			993		—		993		0.3
Spain		—			5,772		—		5,772		2.0
Sweden		—			3,414		—		3,414		1.2
Switzerland		3,283			24,751		—		28,034		9.6
Taiwan		847			2,454		—		3,301		1.1
Thailand		—			799		—		799		0.3
United Kingdom		4,104			50,170		—		54,274		18.6
United States		2,322			1,546		—		3,868		1.3
Preferred Stocks		143			977		—		1,120		0.4
Short-Term Investments		—			20,892		—		20,892		7.2
Other Securities		—			10,872		—		10,872		3.7

Total Investments		32,556			264,792		657		298,005		102.2

Other Assets and Liabilities, Net											(2.2	)


											100.0

Other Financial Instruments
Futures Contracts		(1,039	)		—		—		(1,039	)	(0.4	)
Foreign Currency Exchange Contracts		—			775		—		775		0.3

Total Other Financial Instruments*		(1,039	)		775		—		(264	)

*	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.

For a description of the levels see note 2 in the Notes to Financial Statements.

Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending June 30, 2010 were less than 1% of net assets.

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


Non-U.S. Fund		29

Russell Investment Funds

Non-U.S. Fund

Fair Value of Derivative Instruments — June 30, 2010 (Unaudited)

Amounts in thousands


Derivatives not accounted for as hedging instruments	Equity Contracts			Foreign Currency Contracts

Location: Statement of Assets and Liabilities - Assets
Unrealized appreciation on foreign currency exchange contracts	$	—		$	780

Location: Statement of Assets and Liabilities - Liabilities
Unrealized depreciation on foreign currency exchange contracts	$	—		$	5
Daily variation margin on futures contracts*		1,039			—

		1,039			5


Derivatives not accounted for as hedging instruments	Equity Contracts			Foreign Currency Contracts
Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	(756	)	$	—
Foreign currency-related transactions		—			(3,322	)

		(756	)		(3,322	)

Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	(1,594	)	$	—
Foreign currency-related transactions		—			1,608

		(1,594	)		1,608

*	Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities

For further disclosure on derivatives see note 2 in Notes to Financial Statements.

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


30		Non-U.S. Fund

Russell Investment Funds

Core Bond Fund

Shareholder Expense Example — June 30, 2010 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	Actual Performance		Hypothetical Performance (5% return before expenses)
Beginning Account Value
January 1, 2010	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2010	$	1,067.90	$	1,021.47
Expenses Paid During Period*	$	3.44	$	3.36

Expenses are equal to the Fund’s annualized expense ratio of 0.67% (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.


Core Bond Fund		31

Russell Investment Funds

Core Bond Fund

Schedule of Investments — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Long-Term Investments - 86.1%
Asset-Backed Securities - 4.9%
Access Group, Inc. (Ê) Series 2008-1 Class A 1.616% due 10/27/25	797	817
Accredited Mortgage Loan Trust (Ê) Series 2004-2 Class A2 0.647% due 07/25/34	29	20
ACE Securities Corp. (Ê) Series 2003-OP1 Class M2 1.847% due 12/25/33	18	15
Series 2005-SD3 Class A 0.747% due 08/25/45	104	96
Aegis Asset Backed Securities Trust (Ê) Series 2003-3 Class M2 2.822% due 01/25/34	98	60
Ally Auto Receivables Trust (Þ) Series 2009-A Class A2 1.320% due 03/15/12	176	176
Ameriquest Mortgage Securities, Inc. (Ê) Series 2002-D Class M1 4.097% due 02/25/33	90	38
ARES CLO Funds (Ê)(Å) Series 2003-7A Class A1B 0.924% due 05/08/15	518	478
Armstrong Loan Funding, Ltd. (Ê)(Å) Series 2008-1A Class A 0.894% due 08/01/16	487	468
BA Credit Card Trust (Ê) Series 2008-A1 Class A1 0.930% due 04/15/13	200	200
Bayview Financial Acquisition Trust Series 2006-A Class 1A3 5.865% due 02/28/41	190	148
Centex Home Equity (Ê) Series 2006-A Class AV4 0.597% due 06/25/36	700	379
CIT Mortgage Loan Trust (Ê)(Å) Series 2007-1 Class 2A1 1.347% due 10/25/37	136	125
Series 2007-1 Class 2A2 1.593% due 10/25/37	130	70
Series 2007-1 Class 2A3 1.793% due 10/25/37	180	73
Citigroup Mortgage Loan Trust, Inc. (Ê) Series 2003-HE4 Class A (Þ) 0.757% due 12/25/33	592	485
Series 2006-WFH Class A2 0.447% due 10/25/36	209	206
Series 2007-WFH Class A2B 1.397% due 07/25/37	1,290	659
Series 2007-WFH Class A3 0.497% due 01/25/37	1,045	711
Series 2007-WFH Class A4 0.547% due 01/25/37	840	360


	Principal Amount ($) or Shares	Market Value $
Conseco Financial Corp. Series 1999-2 Class A5 6.680% due 12/01/30	960	965
Continental Airlines 1999-1 Class A Pass Through Trust Series 991A 6.545% due 08/02/20	190	191
Continental Airlines 2007-1 Class A Pass Through Trust Series 071A 5.983% due 10/19/23	147	145
Continental Airlines 2009-1 Class A Pass Through Trust 9.000% due 07/08/16	245	263
Countrywide Asset-Backed Certificates Series 2004-AB2 Class M3 (Ê) 0.947% due 05/25/36	95	17
Series 2004-BC1 Class M1 (Ê) 1.097% due 02/25/34	83	76
Series 2006-11 Class 1AF4 6.261% due 09/25/46	168	58
Countrywide Home Equity Loan Trust (Ê) Series 2006-HW Class 2A1B 0.487% due 11/15/36	369	266
First Franklin Mortgage Loan Asset Backed Certificates (Ê) Series 2006-FF1 Class A3 0.397% due 11/25/36	36	35
Series 2007-FF1 Class A2B 0.437% due 01/25/38	999	616
GMAC Mortgage Corp. Loan Trust Series 2007-HE3 Class 1A1 7.000% due 09/25/37	53	31
Series 2007-HE3 Class 2A1 7.000% due 09/25/37	63	34
Goal Capital Funding Trust (Ê)(Å) Series 2010-1 Class A 1.238% due 08/25/48	500	499
GSAA Trust Series 2006-2 Class 2A3 (Ê) 0.617% due 12/25/35	320	285
Series 2006-4 Class 1A2 5.814% due 03/25/36	192	20
GSAMP Trust (Ê) Series 2003-HE2 Class M1 1.322% due 08/25/33	61	33
HSBC Home Equity Loan Trust (Ê) Series 2005-1 Class A 0.638% due 01/20/34	171	155
Series 2006-4 Class A3V 0.498% due 03/20/36	800	740
Series 2007-1 Class AS 0.548% due 03/20/36	634	579
Series 2007-3 Class APT 1.548% due 11/20/36	283	238


32		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

HSI Asset Securitization Corp. Trust (Ê) Series 2006-HE2 Class 2A1 0.397% due 12/25/36	11	10
Indymac Residential Asset Backed Trust (Ê) Series 2006-H2 Class A 0.497% due 06/28/36	234	95
IXIS Real Estate Capital Trust (Ê) Series 2005-HE1 Class M2 1.082% due 06/25/35	496	464
JPMorgan Mortgage Acquisition Corp. (Ê) Series 2007-CH4 Class A4 0.507% due 05/25/37	1,000	416
Lehman XS Trust (Ê) Series 2005-1 Class 2A2 1.843% due 07/25/35	53	31
Series 2005-5N Class 3A1A 0.647% due 11/25/35	342	220
Series 2005-7N Class 1A1A 0.617% due 12/25/35	372	240
Series 2006-16N Class A1A 0.427% due 11/25/46	9	9
Series 2006-16N Class A4A 0.537% due 11/25/46	607	309
Long Beach Mortgage Loan Trust (Ê) Series 2004-4 Class 1A1 0.627% due 10/25/34	5	4
Master Asset Backed Securities Trust (Ê) Series 2003-WMC Class M2 2.822% due 08/25/33	57	30
Series 2005-WMC Class M1 0.767% due 03/25/35	401	396
Morgan Stanley ABS Capital I (Ê) Series 2003-NC8 Class M3 3.497% due 09/25/33	26	5
Series 2006-HE1 Class A4 0.637% due 01/25/36	1,950	1,020
Series 2007-HE2 Class A2B 0.437% due 01/25/37	1,043	526
New Century Home Equity Loan Trust (Ê) Series 2004-4 Class M2 0.877% due 02/25/35	215	134
Option One Mortgage Loan Trust (Ê) Series 2003-2 Class M2 2.897% due 04/25/33	36	13
Series 2003-3 Class M3 3.347% due 06/25/33	27	12
Series 2003-4 Class M2 2.822% due 07/25/33	24	9
Park Place Securities, Inc. (Ê) Series 2005-WCW Class M1 0.797% due 09/25/35	210	129
Popular ABS Mortgage Pass-Through Trust Series 2005-6 Class A3 5.680% due 01/25/36	141	123
Renaissance Home Equity Loan Trust Series 2005-1 Class M1 5.357% due 05/25/35	61	27


	Principal Amount ($) or Shares	Market Value $
Series 2005-2 Class AF4 4.934% due 08/25/35	85	71
Series 2006-1 Class AF6 5.746% due 05/25/36	169	92
Residential Asset Mortgage Products, Inc. Series 2003-RS1 Class AI6A 5.980% due 12/25/33	122	111
Series 2003-RS9 Class AI6A 6.110% due 10/25/33	401	372
Residential Asset Securities Corp. Series 2003-KS2 Class MI1 4.800% due 04/25/33	126	55
Series 2003-KS2 Class MI3 6.100% due 04/25/33	51	7
Series 2003-KS4 Class AIIB (Ê) 0.927% due 06/25/33	34	16
Series 2007-KS2 Class AI1 (Ê) 0.417% due 02/25/37	65	62
SBI Heloc Trust (Ê)(Þ) Series 2006-1A Class 1A2A 0.517% due 08/25/36	10	10
SG Mortgage Securities Trust (Ê) Series 2006-OPT Class A3C 0.497% due 10/25/36	1,500	618
SLM Student Loan Trust (Ê) Series 2007-3 Class A1 0.306% due 10/27/14	36	36
Series 2008-2 Class A1 0.616% due 01/25/15	53	53
Series 2008-7 Class A2 0.816% due 10/25/17	2,800	2,797
Small Business Administration Participation Certificates Series 2005-20G Class 1 4.750% due 07/01/25	680	728
Soundview Home Equity Loan Trust (Ê) Series 2005-OPT Class A4 0.647% due 11/25/35	643	601
Structured Asset Securities Corp. (Ê) Series 2006-BC3 Class A2 0.397% due 10/25/36	23	23
Series 2007-BC3 Class 2A2 0.487% due 05/25/47	1,220	753

		21,457


Corporate Bonds and Notes - 20.4%
ACE Capital Trust II 9.700% due 04/01/30	175	210
Achmea Hypotheekbank NV (Þ) 3.200% due 11/03/14	900	930
AES Corp. (The) (Ñ)(Þ) 8.750% due 05/15/13	267	271
Agilent Technologies, Inc. 5.500% due 09/14/15	300	323
Allied Waste NA, Inc. Series B 7.125% due 05/15/16	90	97


Core Bond Fund		33

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Allstate Life Global Funding Trusts 5.375% due 04/30/13	200	219
Ally Financial, Inc. 6.875% due 09/15/11	525	532
7.500% due 12/31/13	1,900	1,895
Altria Group, Inc. 9.700% due 11/10/18	100	127
American Express Bank FSB Series BKNT 5.500% due 04/16/13 (Ñ)	300	324
6.000% due 09/13/17	400	439
American Express Centurion Bank Series BKN1 6.000% due 09/13/17	400	440
American Express Co. 7.000% due 03/19/18	200	231
American General Finance Corp. 6.900% due 12/15/17	300	239
Series MTNI (Ñ) 4.875% due 07/15/12	100	90
American International Group, Inc. (Ñ) 5.450% due 05/18/17	1,000	887
5.850% due 01/16/18	900	804
Amgen, Inc. 6.900% due 06/01/38	1,000	1,256
Anglo American Capital PLC (Þ) 9.375% due 04/08/14	100	120
Anheuser-Busch InBev Worldwide, Inc. 7.200% due 01/15/14 (Þ)	125	144
4.125% due 01/15/15 (Ñ)	225	236
7.750% due 01/15/19 (Þ)	200	243
Appalachian Power Co. Series O 5.650% due 08/15/12	65	70
Arizona Public Service Co. 5.800% due 06/30/14	100	110
6.250% due 08/01/16	150	168
AT&T, Inc. 4.950% due 01/15/13	200	217
5.500% due 02/01/18	200	221
6.300% due 01/15/38	900	977
6.400% due 05/15/38	175	192
BAC Capital Trust XV (Ê) 1.338% due 06/01/56	375	245
Bank of America Corp. 5.625% due 10/14/16	115	119
6.000% due 09/01/17	335	353
5.750% due 12/01/17	140	145
5.625% due 07/01/20	125	126
Bank of America NA Series BKNT 0.817% due 06/15/16 (Ê)	200	175
6.100% due 06/15/17	175	181
Bank of Montreal (Þ) 2.850% due 06/09/15	100	102


	Principal Amount ($) or Shares	Market Value $
BankAmerica Capital III (Ê) Series * 0.873% due 01/15/27	350	232
Bear Stearns Cos. LLC (The) 6.950% due 08/10/12	600	658
7.250% due 02/01/18	445	520
BellSouth Telecommunications, Inc. 7.000% due 12/01/95	245	271
BNP Paribas Capital Trust (ƒ)(Þ) 9.003% due 12/29/49	450	441
Boardwalk Pipelines, LP 5.875% due 11/15/16	225	245
Boston Scientific Corp. 4.500% due 01/15/15	125	123
6.000% due 01/15/20 (Ñ)	100	99
7.000% due 11/15/35	63	61
Burlington Northern Santa Fe LLC 6.875% due 12/01/27	25	29
6.750% due 03/15/29	10	11
Caterpillar Financial Services Corp. 4.850% due 12/07/12	100	108
Cellco Partnership / Verizon Wireless Capital LLC 5.250% due 02/01/12	700	742
8.500% due 11/15/18	175	228
CenterPoint Energy Houston Electric LLC (Ñ) Series J2 5.700% due 03/15/13	110	121
CenterPoint Energy Resources Corp. 6.125% due 11/01/17	50	55
Chase Capital III (Ê) Series C 1.088% due 03/01/27	295	223
Chesapeake Energy Corp. 7.000% due 08/15/14	350	356
CHS/Community Health Systems, Inc. Series WI 8.875% due 07/15/15	335	345
Chubb Corp. 6.375% due 03/29/67	175	168
CIT Group, Inc. (Ñ) 7.000% due 05/01/13	156	150
7.000% due 05/01/14	85	80
7.000% due 05/01/15	285	263
7.000% due 05/01/16	141	129
7.000% due 05/01/17	198	178
Citibank NA Series FXD 1.875% due 05/07/12	100	102
Citigroup Capital XXI (Ñ) 8.300% due 12/21/57	500	487
Citigroup Funding, Inc. 2.250% due 12/10/12	200	206
Citigroup, Inc. 2.875% due 12/09/11 (Ñ)	500	516
2.125% due 04/30/12	800	820
5.500% due 08/27/12 (Ñ)	200	208


34		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

5.625% due 08/27/12	200	206
5.500% due 04/11/13	700	728
5.850% due 07/02/13 (Ñ)	100	105
6.375% due 08/12/14	150	159
5.000% due 09/15/14	400	400
4.700% due 05/29/15 (Ñ)	50	50
5.850% due 08/02/16	55	57
6.000% due 08/15/17	850	883
6.125% due 11/21/17	405	423
6.125% due 08/25/36	300	273
6.875% due 03/05/38	600	629
8.125% due 07/15/39	165	197
Columbus Southern Power Co. Series C 5.500% due 03/01/13	10	11
Comcast Cable Communications Holdings, Inc. 9.455% due 11/15/22	100	138
Comcast Cable Holdings LLC 9.800% due 02/01/12	180	201
Comcast Holdings Corp. 10.625% due 07/15/12	125	145
Commonwealth Edison Co. 6.950% due 07/15/18	50	58
Countrywide Financial Corp. Series MTn 5.800% due 06/07/12	100	105
COX Communications, Inc. (Þ) 5.875% due 12/01/16	75	83
8.375% due 03/01/39	125	170
Credit Agricole SA (ƒ)(Þ) 8.375% due 10/29/49	150	142
Credit Suisse USA, Inc. 5.500% due 08/15/13 (Ñ)	45	49
4.875% due 01/15/15	55	59
Danske Bank A/S (Þ) 2.500% due 05/10/12	500	512
DCP Midstream LLC (Þ) 9.750% due 03/15/19	100	129
Dell, Inc. (Ñ) Series WI 4.700% due 04/15/13	400	433
Delta Air Lines, Inc. 9.500% due 09/15/14 (Þ)	480	504
Series 00A2 (Ñ) 7.570% due 05/18/12	205	208
Series 01A2 7.111% due 03/18/13	400	413
Developers Diversified Realty Corp. 7.500% due 04/01/17	175	172
DirecTV Holdings LLC / DirecTV Financing Co., Inc. (Ñ) 5.875% due 10/01/19	125	137
6.350% due 03/15/40	75	80
Discover Bank/Greenwood DE Series BKNT 8.700% due 11/18/19	250	278


	Principal Amount ($) or Shares	Market Value $
DISH DBS Corp. 7.125% due 02/01/16	125	125
Dolphin Energy, Ltd. (Þ) 5.888% due 06/15/19	125	129
Dow Chemical Co. (The) 7.600% due 05/15/14	300	346
5.900% due 02/15/15	75	82
DPL, Inc. 6.875% due 09/01/11	193	204
Dynegy Roseton / Danskammer Pass Through Trust Series B 7.670% due 11/08/16	700	616
Edison Mission Energy 7.000% due 05/15/17	675	432
El Paso Corp. Series GMTN 8.050% due 10/15/30	200	198
El Paso Natural Gas Co. 7.500% due 11/15/26	100	109
El Paso Pipeline Partners Operating Co. LLC 6.500% due 04/01/20	75	77
Enel Finance International SA (Þ) 5.125% due 10/07/19	175	176
Energy Transfer Partners, LP (Ñ) 5.950% due 02/01/15	300	320
Enterprise Products Operating LLC
6.650% due 04/15/18	250	285
Series A
8.375% due 08/01/66	100	100
Farmers Exchange Capital (Þ)
7.050% due 07/15/28	500	477
7.200% due 07/15/48	300	277
Fifth Third Bancorp 8.250% due 03/01/38	1,100	1,233
Fifth Third Bank (Ê) Series BKNT 0.546% due 05/17/13	250	235
First Niagara Financial Group, Inc. 6.750% due 03/19/20	125	131
FirstEnergy Corp. Series B 6.450% due 11/15/11	12	13
FPL Energy Wind Funding LLC (Þ) 6.876% due 06/27/17	235	232
Freeport-McMoRan Copper & Gold, Inc. 8.375% due 04/01/17	300	330
General Electric Capital Corp.
3.000% due 12/09/11	500	516
1.384% due 05/22/13 (Ê)	75	74
5.900% due 05/13/14 (Ñ)	350	386
5.625% due 05/01/18	230	244
5.875% due 01/14/38	300	294
6.375% due 11/15/67	1,900	1,767
Series EMtn (Ê)
0.595% due 03/20/14	400	374


Core Bond Fund		35

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Series GMTN
2.000% due 09/28/12	400	410
2.625% due 12/28/12	1,000	1,039
Series MTNA (Ê)
0.797% due 09/15/14	300	283
General Electric Co. 5.250% due 12/06/17	250	272
Goldman Sachs Group, Inc. (The)
1.151% due 12/05/11 (Ê)	1,020	1,032
4.750% due 07/15/13	350	365
6.000% due 05/01/14	150	161
6.250% due 09/01/17	600	635
6.150% due 04/01/18	150	157
7.500% due 02/15/19	550	615
6.000% due 06/15/20 (Ñ)	285	294
6.750% due 10/01/37	800	784
Series MTNB (Ê)
0.707% due 07/22/15	100	90
Hartford Financial Services Group, Inc. 6.625% due 03/30/40	50	46
HBOS PLC (Þ) 6.750% due 05/21/18	825	772
HCA, Inc.
8.500% due 04/15/19	300	318
7.875% due 02/15/20	125	129
HCP, Inc.
5.950% due 09/15/11	585	606
6.700% due 01/30/18	425	448
Healthcare Realty Trust, Inc. 6.500% due 01/17/17	700	732
Historic TW, Inc. 8.050% due 01/15/16	195	234
Indiantown Cogeneration, LP Series A-10 9.770% due 12/15/20	275	304
International Paper Co. (Ñ) 7.950% due 06/15/18	75	89
Jackson National Life Fund LLC 0.628% due 08/06/11	2,800	2,763
Jersey Central Power & Light Co. 5.625% due 05/01/16	90	97
JPMorgan Chase & Co.
5.375% due 01/15/14 (Ñ)	170	183
6.000% due 01/15/18	200	221
Series 1 (ƒ)
7.900% due 04/29/49	300	309
JPMorgan Chase Bank NA
Series AI (Þ)
5.875% due 06/13/16	70	77
Series BKNT
6.000% due 10/01/17	570	621
JPMorgan Chase Capital XIII (Ê) Series M 1.483% due 09/30/34	480	356
JPMorgan Chase Capital XXI (Ê) Series U 1.294% due 01/15/87	335	242


	Principal Amount ($) or Shares		Market Value $
JPMorgan Chase Capital XXIII (Ê) 1.436% due 05/15/77	545		399
KCP&L Greater Missouri Operations Co. 11.875% due 07/01/12	640		737
Kinder Morgan Energy Partners, LP 5.950% due 02/15/18	700		756
Kraft Foods, Inc.
6.125% due 02/01/18 (Ñ)	200		227
6.125% due 08/23/18	125		142
5.375% due 02/10/20	700		750
6.500% due 02/09/40	175		196
L-3 Communications Corp. Series B 6.375% due 10/15/15	125	��	125
Landwirtschaftliche Rentenbank 1.875% due 09/24/12	1,700		1,721
Lehman Brothers Holdings, Inc. (Ø)
6.200% due 09/26/14	200		39
Macquarie Bank, Ltd. (Þ) 3.300% due 07/17/14	1,000		1,048
Manufacturers & Traders Trust Co. 5.585% due 12/28/20	84		80
MBNA Capital B (Ê) Series B 1.144% due 02/01/27	985		666
MBNA Corp. 6.125% due 03/01/13	200		215
Merrill Lynch & Co., Inc.
6.050% due 08/15/12	100		106
6.050% due 05/16/16	300		310
6.400% due 08/28/17	325		339
6.875% due 04/25/18	725		773
MetLife, Inc.
6.125% due 12/01/11	205		217
6.400% due 12/15/36	100		88
Series A
6.817% due 08/15/18	200		226
Metropolitan Life Global Funding I (Þ) 5.125% due 06/10/14	200		217
Mirant Mid Atlantic Pass Through Trust A Series A 8.625% due 06/30/12	242		247
Mirant Mid Atlantic Pass Through Trust B Series B 9.125% due 06/30/17	282		291
Morgan Stanley
3.250% due 12/01/11	700		725
5.375% due 10/15/15	500		506
0.754% due 10/18/16 (Ê)	435		378
5.450% due 01/09/17	225		223
6.250% due 08/28/17	100		102
5.950% due 12/28/17	125		127
6.625% due 04/01/18	450		472
7.300% due 05/13/19	100		108
5.625% due 09/23/19	100		97
Series GMTN (Ê)
2.930% due 05/14/13	200		201


36		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

0.595% due 01/09/14	425	391
National City Bank (Ê) Series BKNT 0.908% due 06/07/17	700	626
Nevada Power Co. Series L 5.875% due 01/15/15	100	111
News America Holdings, Inc.
7.900% due 12/01/95	90	107
8.250% due 10/17/96	20	23
NGPL PipeCo LLC (Þ) 6.514% due 12/15/12	200	199
Nisource Finance Corp.
10.750% due 03/15/16	100	128
6.400% due 03/15/18	145	160
6.125% due 03/01/22	335	358
North American Development Bank 4.375% due 02/11/20	500	523
Ohio Power Co. Series F 5.500% due 02/15/13	20	22
Oncor Electric Delivery Co. LLC (Ñ) 6.800% due 09/01/18	550	646
Panhandle Eastern Pipeline Co., LP 8.125% due 06/01/19	450	504
Petroleos Mexicanos 8.000% due 05/03/19	320	381
Philip Morris International, Inc. 6.375% due 05/16/38	100	117
PNC Bank NA Series BKNT 6.875% due 04/01/18	175	198
Progress Energy, Inc.
5.625% due 01/15/16 (Ñ)	40	44
7.050% due 03/15/19	200	236
ProLogis 1.875% due 11/15/37	150	135
Prudential Financial, Inc. 3.875% due 01/14/15	375	378
Prudential Holdings LLC (Þ) 8.695% due 12/18/23	550	657
Public Service Co. of New Mexico 7.950% due 05/15/18	260	274
Puget Sound Energy, Inc. Series A 6.974% due 06/01/67	125	114
Pulte Group, Inc. 5.250% due 01/15/14	1,000	967
Qwest Corp.
7.875% due 09/01/11	120	125
7.625% due 06/15/15 (Ñ)	100	107
8.375% due 05/01/16	175	191
Reinsurance Group of America, Inc. 6.750% due 12/15/65	75	62
Reliant Energy Mid-Atlantic Power Holdings LLC Series B 9.237% due 07/02/17	318	331


	Principal Amount ($) or Shares	Market Value $
Rensselaer Polytechnic Institute 5.600% due 09/01/20	325	352
Royal Bank of Scotland PLC (The) (Þ) 4.875% due 08/25/14	100	100
Sabine Pass LNG, LP
7.250% due 11/30/13	730	657
7.500% due 11/30/16	65	54
Simon Property Group, LP
5.300% due 05/30/13	395	425
6.100% due 05/01/16	130	144
5.650% due 02/01/20	275	291
Southern Union Co. 7.200% due 11/01/66	740	656
Sprint Capital Corp. 8.375% due 03/15/12	125	131
State Street Capital Trust III (ƒ)(Ñ) 8.250% due 01/29/49	200	200
Symetra Financial Corp. (Å) 6.125% due 04/01/16	150	151
Target Corp. 5.125% due 01/15/13	400	436
Tennessee Gas Pipeline Co.
8.000% due 02/01/16	200	232
7.500% due 04/01/17	75	86
8.375% due 06/15/32	100	117
Time Warner, Inc. (Ñ) 5.875% due 11/15/16	400	451
Transatlantic Holdings, Inc. 8.000% due 11/30/39	150	151
TransCanada PipeLines, Ltd. 6.350% due 05/15/67	225	201
Transocean, Inc. Series B 1.500% due 12/15/37	650	577
UAL 2009-1 Pass Through Trust 10.400% due 05/01/18	97	105
Union Electric Co. 6.400% due 06/15/17	205	233
Union Pacific Corp. (Ñ) 5.700% due 08/15/18	400	448
UnitedHealth Group, Inc.
4.875% due 02/15/13 (Ñ)	200	215
6.000% due 06/15/17	3	3
Series WI
6.500% due 06/15/37	45	49
Vale Overseas, Ltd. (Ñ) 5.625% due 09/15/19	400	422
Valero Energy Corp. (Ñ)
9.375% due 03/15/19	450	545
6.125% due 02/01/20	250	257
Wachovia Corp.
5.625% due 10/15/16	100	108
5.750% due 02/01/18 (Ñ)	500	548
WEA Finance LLC / WT Finance Aust Pty, Ltd. (Þ)
7.500% due 06/02/14	205	232
6.750% due 09/02/19	95	106


Core Bond Fund		37

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Wells Fargo & Co.
5.625% due 12/11/17 (Ñ)	300	328
Series K (ƒ)
7.980% due 03/29/49	3,300	3,399
Westpac Banking Corp. (Þ) 1.900% due 12/14/12	800	805
Whirlpool Corp.
8.000% due 05/01/12	25	27
8.600% due 05/01/14	75	88
Williams Cos., Inc. (The) 7.875% due 09/01/21	366	419
Windstream Corp. Series WI 8.625% due 08/01/16	125	126
XTO Energy, Inc. (Ñ) 6.500% due 12/15/18	175	212
ZFS Finance USA Trust I (Þ) Series 144a 6.150% due 12/15/65	200	186
ZFS Finance USA Trust II (Þ) 6.450% due 12/15/65	300	268

		89,746


International Debt - 6.3%
Anglo American Capital PLC (Þ) 9.375% due 04/08/19	100	129
ANZ National International, Ltd. (Þ) 6.200% due 07/19/13	600	665
ArcelorMittal Series WI 6.125% due 06/01/18	175	183
ARES CLO Funds (Ê)(Å) Series 2005-10A Class A3 0.779% due 09/18/17	730	672
Argentina Government International Bond (Ê) Series $GDP Zero coupon due 12/15/35	1,650	126
AstraZeneca PLC 5.900% due 09/15/17	100	117
Barclays Bank PLC
5.450% due 09/12/12	1,300	1,382
6.050% due 12/04/17 (Þ)	200	202
BAT International Finance PLC (Þ) 9.500% due 11/15/18	150	197
BBVA Bancomer SA(Þ) 7.250% due 04/22/20	300	296
Black Diamond CLO, Ltd. (Ê)(Å) Series 2007-1A Class AD 0.578% due 04/29/19	750	662
BNP Paribas (ƒ)(Þ) 5.186% due 06/29/49	300	246
BRFkredit AS (Þ) 2.050% due 04/15/13	1,200	1,222
Canadian Natural Resources, Ltd. 5.150% due 02/01/13	100	108


	Principal Amount ($) or Shares		Market Value $
Chatham Light CLO, Ltd. (Ê)(Å) Series 2005-2A Class A1 0.594% due 08/03/19		495	464
Corp. Nacional del Cobre de Chile (Þ) 7.500% due 01/15/19		200	245
Covidien International Finance SA 4.200% due 06/15/20		175	179
Credit Suisse NY 6.000% due 02/15/18		770	803
Deutsche Bank AG 6.000% due 09/01/17		600	662
Dexia Credit Local (Ê)(Þ) 0.808% due 04/29/14		500	499
Electricite De France (Þ)
5.500% due 01/26/14		200	221
6.500% due 01/26/19		200	233
6.950% due 01/26/39		200	241
Endurance Specialty Holdings, Ltd. 6.150% due 10/15/15		100	107
Enel Finance International SA (Þ) 6.250% due 09/15/17		300	325
Export-Import Bank of Korea (Ñ) 5.875% due 01/14/15		700	758
FIH Erhvervsbank A/S (Þ) 2.450% due 08/17/12		500	512
Gazprom International SA for Gazprom Series regs 7.201% due 02/01/20		64	66
HSBC Holdings PLC
6.500% due 05/02/36		100	104
6.500% due 09/15/37		100	104
International Lease Finance Corp. (Ê) 1.058% due 08/15/11		100	111
Israel Government AID Bond 5.500% due 09/18/33		400	461
JPMorgan Chase Bank
10.000% due 07/17/17	IDR	2,137,000	259
11.000% due 11/17/20	IDR	2,248,000	293
Korea Electric Power Corp. (Þ) 5.125% due 04/23/34		60	64
Kreditanstalt fuer Wiederaufbau (Ñ) 1.875% due 01/14/13		900	913
Landwirtschaftliche Rentenbank 5.250% due 07/02/12		700	756
LeasePlan Corp. NV (Þ) 3.000% due 05/07/12		400	411
Lloyds TSB Bank PLC (Þ) 4.375% due 01/12/15		200	193
Mexico Government International Bond 6.050% due 01/11/40		260	274
Morgan Stanley Bank AG for OAO Gazprom Series REGS 9.625% due 03/01/13		900	1,001
MUFG Capital Finance 1, Ltd. (ƒ) 6.346% due 07/29/49		200	194


38		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

National Australia Bank, Ltd. (Þ) 5.350% due 06/12/13	800	867
Peruvian Government International Bond 7.125% due 03/30/19	180	213
Petro-Canada 6.050% due 05/15/18	100	113
Petrobras International Finance Co. - Pifco (Ñ) 7.875% due 03/15/19	800	915
Province of Ontario Canada 4.100% due 06/16/14	400	430
Qatar Government International Bond (Þ) 5.250% due 01/20/20	520	543
Ras Laffan Liquefied Natural Gas Co., Ltd. III (Þ) 5.838% due 09/30/27	250	258
Resona Bank, Ltd. (ƒ)(Þ) 5.850% due 09/29/49	100	95
Royal Bank of Scotland Group PLC
6.990% due 10/29/49 (ƒ)(Þ)	300	195
Series 1 (ƒ)
9.118% due 03/31/49	300	258
Royal Bank of Scotland PLC (The) (Þ)
3.000% due 12/09/11	200	205
1.500% due 03/30/12	1,200	1,202
State of Qatar 5.150% due 04/09/14	100	107
Suncor Energy, Inc. 6.100% due 06/01/18	100	113
Swedbank AB
3.000% due 12/22/11 (Å)	500	515
2.800% due 02/10/12 (Þ)	100	103
2.900% due 01/14/13 (Å)	100	104
Swedish Housing Finance Corp. (Þ) 3.125% due 03/23/12	1,000	1,035
Systems 2001 AT LLC (Þ) 7.156% due 12/15/11	41	42
Teck Resources, Ltd. 10.750% due 05/15/19	200	245
Telecom Italia Capital SA
6.200% due 07/18/11	255	264
7.200% due 07/18/36	225	218
TransCapitalInvest, Ltd. for OJSC AK Transneft (Þ) 8.700% due 08/07/18	100	117
UBS AG
5.850% due 12/31/17	270	141
Series DPNT
5.875% due 12/20/17	400	423
5.750% due 04/25/18	100	103
UBS Luxembourg SA for OJSC Vimpel Communications Series REGS 8.250% due 05/23/16	100	103
US Bank National Associtaion 4.375% due 02/28/17	100	121
WCI Finance LLC / WEA Finance LLC (Þ) 5.400% due 10/01/12	75	79
Wells Fargo & Co. 0.933% due 03/23/16	400	461


	Principal Amount ($) or Shares	Market Value $
Westpac Banking Corp. (Þ) 3.250% due 12/16/11	300	309
Westpac Securities NZ, Ltd. (Þ) 2.500% due 05/25/12	100	102
WG Horizons CLO (Ê)(Å) Series 2006-1A Class A1 0.796% due 05/24/19	1,300	1,166
Xstrata Canada Corp. 6.000% due 10/15/15	45	49

		27,874

Loan Agreements - 0.3%
Adam Aircraft Term Loan (Å)(Ø) 15.290% due 05/01/12	49	—
HCA, Inc., Term Loan A (Ê) 2.033% due 11/18/12	507	479
Kelson Holdings, Inc., 1st Lien Term Loan (Ê) 3.783% due 03/08/13	1,000	951

		1,430


Mortgage-Backed Securities - 35.2%
ABN Amro Mortgage Corp. Series 2003-13 Class A3 5.500% due 01/25/34	1,857	1,681
Adjustable Rate Mortgage Trust
Series 2004-5 Class 2A1
3.092% due 04/25/35	56	50
Series 2005-3 Class 8A2 (Ê)
0.587% due 07/25/35	85	72
American Home Mortgage Assets (Ê) Series 2007-4 Class A2 0.537% due 08/25/37	1,060	705
American Home Mortgage Investment Trust (Ê) Series 2004-4 Class 4A 2.442% due 02/25/45	76	69
Banc of America Alternative Loan Trust
Series 2003-2 Class CB2 (Ê)
0.847% due 04/25/33	47	41
Series 2003-10 Class 2A2 (Ê)
0.797% due 12/25/33	137	122
Series 2006-5 Class CB17
6.000% due 06/25/46	166	120
Banc of America Commercial Mortgage, Inc.
Series 2002-PB2 Class A4
6.186% due 06/11/35	555	582
Series 2005-2 Class A4
4.783% due 07/10/43	325	337
Series 2005-3 Class A2
4.501% due 07/10/43	110	111
Series 2006-1 Class A4
5.372% due 09/10/45	280	296
Series 2006-2 Class A4
5.928% due 05/10/45	200	212
Series 2006-4 Class A4
5.634% due 07/10/46	500	514


Core Bond Fund		39

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Banc of America Funding Corp.
Series 2005-D Class A1 (Ê)
2.926% due 05/25/35	92	90
Series 2006-3 Class 5A8
5.500% due 03/25/36	475	387
Series 2006-A Class 3A2
5.721% due 02/20/36	141	87
Series 2006-A Class 4A1 (Ê)
5.520% due 02/20/36	385	291
Series 2006-I Class 5A1 (Ê)
6.063% due 10/20/46	1,617	1,389
Banc of America Mortgage Securities, Inc.
Series 2003-9 Class 1A12 (Ê)
0.797% due 12/25/33	66	66
Series 2004-1 Class 5A1
6.500% due 09/25/33	7	7
Series 2004-2 Class 1A9 (Ê)
0.797% due 03/25/34	59	56
Series 2004-11 Class 2A1
5.750% due 01/25/35	245	246
Series 2005-H Class 2A5 (Ê)
4.784% due 09/25/35	220	185
Series 2005-L Class 3A1 (Ê)
5.401% due 01/25/36	163	151
Series 2006-2 Class A15
6.000% due 07/25/46	122	112
Series 2006-B Class 1A1 (Ê)
4.264% due 10/20/46	75	49
Bear Stearns Adjustable Rate Mortgage Trust
Series 2003-1 Class 6A1
2.960% due 04/25/33	28	27
Series 2003-8 Class 4A1
3.529% due 01/25/34	77	73
Series 2004-9 Class 22A1 (Ê)
4.069% due 11/25/34	52	49
Series 2005-2 Class A1 (Ê)
2.760% due 03/25/35	867	803
Series 2007-3 Class 1A1
5.370% due 05/25/47	298	215
Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
2.759% due 05/25/35	172	133
Series 2005-7 Class 22A1
4.539% due 09/25/35	84	63
Chase Mortgage Finance Corp.
Series 2003-S8 Class A1
4.500% due 09/25/18	84	86
Series 2006-S4 Class A3
6.000% due 12/25/36	142	140
Series 2006-S4 Class A4
6.000% due 12/25/36	32	30
Citigroup Mortgage Loan Trust, Inc.
Series 2005-11 Class A2A (Ê)
4.700% due 12/25/35	53	48
Series 2006-AR7 Class 1A4A
5.590% due 11/25/36	674	499


	Principal Amount ($) or Shares	Market Value $
Series 2007-AR8 Class 2A1A
5.825% due 07/25/37	885	645
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A4
5.397% due 07/15/44	340	364
Series 2006-CD3 Class A5
5.617% due 10/15/48	190	195
Citimortgage Alternative Loan Trust Series 2006-A3 Class 1A5 6.000% due 07/25/36	96	70
Commercial Mortgage Loan Trust Series 2008-LS1 Class AJ 6.217% due 10/10/17	120	61
Commercial Mortgage Pass Through Certificates
Series 2006-C8 Class A4
5.306% due 12/10/46	200	195
Series 2007-C9 Class A4
6.010% due 12/10/49	360	372
Countrywide Alternative Loan Trust
Series 2005-32T Class A7 (Ê)
0.597% due 08/25/35	65	55
Series 2005-J8 Class 1A3
5.500% due 07/25/35	161	135
Series 2005-J13 Class 2A3
5.500% due 11/25/35	100	79
Series 2006-9T1 Class A7
6.000% due 05/25/36	71	47
Series 2006-J2 Class A3
6.000% due 04/25/36	112	89
Series 2006-OA1 Class A1 (Ê)
0.528% due 02/20/47	698	348
Series 2006-OA1 Class A2 (Ê)
0.537% due 10/25/46	1,675	956
Series 2007-15C Class A5
5.750% due 07/25/37	722	515
Series 2007-J2 Class 2A1
6.000% due 07/25/37	210	156
Series 2007-OA1 Class A1A (Ê)
1.801% due 11/25/47	916	449
Countrywide Home Loan Mortgage Pass Through Trust
Series 2003-8 Class A2 (Ê)
0.847% due 05/25/18	82	76
Series 2003-52 Class A1
3.416% due 02/19/34	126	116
Series 2004-16 Class 1A1 (Ê)
0.747% due 09/25/34	127	71
Series 2004-22 Class A3
3.506% due 11/25/34	162	139
Series 2004-HYB Class 1A1
3.205% due 02/20/35	269	247
Series 2005-1 Class 2A1 (Ê)
0.637% due 03/25/35	1,621	845
Series 2005-3 Class 1A2 (Ê)
0.637% due 04/25/35	24	14


40		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Series 2005-HYB Class 3A2A (Ê)
5.250% due 02/20/36	53	39
Series 2007-1 Class A1
6.000% due 03/25/37	1,546	1,280
Series 2007-2 Class A2
6.000% due 03/25/37	2,100	1,667
Series 2007-4 Class 1A10
6.000% due 05/25/37	2,000	1,505
Series 2007-18 Class 2A1
6.500% due 11/25/37	177	154
Series 2007-HY1 Class 1A2
5.593% due 04/25/37	71	14
Credit Suisse First Boston Mortgage Securities Corp. Series 2005-9 Class 2A1 5.500% due 10/25/35	352	306
Credit Suisse Mortgage Capital Certificates
Series 2006-8 Class 4A1 (Å)
6.500% due 10/25/21	520	351
Series 2006-C2 Class A3
5.846% due 03/15/39	100	104
Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2005-AR1 Class 2A3
4.273% due 08/25/35	465	239
Series 2007-OA1 Class A1 (Ê)
0.497% due 02/25/47	2,403	1,255
Series 2007-OA2 Class A1 (Ê)
1.191% due 04/25/47	1,305	722
DLJ Commercial Mortgage Corp. (Ê) Series 1999-CG1 Class S Interest Only STRIP 1.597% due 03/10/32	245	8
Fannie Mae
5.190% due 2012	200	213
2.829% due 2017 (Ê)	28	30
6.000% due 2017	39	42
4.000% due 2018	496	525
4.500% due 2018	536	574
5.000% due 2018	103	111
6.000% due 2019	254	277
4.500% due 2020	101	108
5.000% due 2020	3,077	3,309
5.500% due 2020	124	134
6.000% due 2020	315	343
5.500% due 2021	192	208
5.500% due 2022	250	271
5.000% due 2023	523	559
5.500% due 2023	267	290
4.500% due 2025	1,335	1,410
6.000% due 2026	550	602
6.000% due 2027	290	317
6.000% due 2028	21	23
5.500% due 2029	55	60
6.000% due 2032	297	328
7.000% due 2032	96	108


	Principal Amount ($) or Shares	Market Value $
2.745% due 2033 (Ê)	56	58
2.818% due 2033 (Ê)	125	129
5.000% due 2033	371	395
5.500% due 2033	396	427
6.000% due 2033	94	104
5.000% due 2034	1,049	1,116
5.500% due 2034	654	705
5.000% due 2035	109	115
5.500% due 2035	6	7
6.000% due 2035	102	112
3.843% due 2036 (Ê)	294	298
6.000% due 2036	143	154
6.500% due 2036	75	82
7.000% due 2036	12	13
5.500% due 2037	360	388
5.503% due 2037 (Ê)	194	207
6.000% due 2037	246	269
6.500% due 2037	696	758
5.500% due 2038	2,100	2,258
6.000% due 2038	1,501	1,635
4.500% due 2039	2,723	2,837
5.000% due 2039	1,823	1,939
4.500% due 2040	1,660	1,731
5.000% due 2040	294	313
Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33	172	29
Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18	440	47
Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19	487	51
Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35	657	102
Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36	123	17
30 Year TBA (Ï)
4.000%	—	19
4.500%	5,000	5,175
6.500%	13,000	14,237
Fannie Mae REMICS
Series 1999-56 Class Z
7.000% due 12/18/29	70	78
Series 2003-32 Class FH (Ê)
0.747% due 11/25/22	159	158
Series 2003-35 Class FY (Ê)
0.747% due 05/25/18	234	232
Series 2003-78 Class FI (Ê)
0.747% due 01/25/33	156	156
Series 2004-21 Class FL (Ê)
0.697% due 11/25/32	93	93
Series 2005-79 Class FC (Ê)
0.647% due 02/25/22	24	24


Core Bond Fund		41

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Series 2006-27 Class SH (Ê)
Interest Only STRIP
6.353% due 04/25/36	3,387	478
Series 2006-48 Class LG
Principal Only STRIP
Zero coupon due 06/25/36	24	24
Series 2007-30 Class AF (Ê)
0.657% due 04/25/37	117	116
Fannie Mae Whole Loan Series 2003-W1 Class 1A1 6.500% due 12/25/42	30	33
Federal Home Loan Mortgage Corp. Structured Pass Through Securities (Ê) Series 2005-63 Class 1A1 1.621% due 02/25/45	24	24
First Horizon Alternative Mortgage Securities
Series 2004-AA3 Class A1 (Ê)
2.331% due 09/25/34	36	31
Series 2006-FA3 Class A6
6.000% due 07/25/36	115	96
First Horizon Asset Securities, Inc. (Ê)
Series 2005-AR5 Class 3A1
5.561% due 10/25/35	67	63
Freddie Mac
6.000% due 2016	14	15
5.000% due 2018	252	271
5.000% due 2019	403	433
5.000% due 2020	727	781
5.500% due 2020	432	469
3.138% due 2030 (Ê)	1	1
5.000% due 2033	118	125
2.873% due 2034 (Ê)	53	54
5.000% due 2035	1,326	1,406
5.779% due 2036 (Ê)	57	60
5.882% due 2036 (Ê)	119	126
5.970% due 2036 (Ê)	70	74
5.315% due 2037 (Ê)	247	261
5.452% due 2037 (Ê)	92	98
5.500% due 2037	1,266	1,357
5.642% due 2037 (Ê)	342	365
5.687% due 2037 (Ê)	45	48
5.724% due 2037 (Ê)	146	156
5.745% due 2037 (Ê)	110	117
5.812% due 2037 (Ê)	116	123
5.859% due 2037 (Ê)	29	31
5.947% due 2037 (Ê)	61	65
6.000% due 2037	1,049	1,141
5.000% due 2038	79	83
5.500% due 2038	5,536	5,948
6.000% due 2038	6,834	7,424
4.500% due 2039	3,584	3,718
5.000% due 2039	3,588	3,799
6.000% due 2039	105	113
3.594% due 2040 (Ê)	1,205	1,252
Freddie Mac REMICS
Series 2000-226 Class F (Ê)
0.800% due 11/15/30	11	11


	Principal Amount ($) or Shares	Market Value $
Series 2003-256 Class FJ (Ê)
0.750% due 02/15/33	78	79
Series 2004-281 Class DF (Ê)
0.800% due 06/15/23	63	63
Series 2005-294 Class FA (Ê)
0.520% due 03/15/20	122	120
Series 2005-299 Class KF (Ê)
0.750% due 06/15/35	22	22
Series 2005-301 Class IM
Interest Only STRIP
5.500% due 01/15/31	72	3
Series 2007-330 Class GL (Ê)(Å)
20.057% due 04/15/37	8	8
Series 2007-333 Class BF (Ê)
0.500% due 07/15/19	177	176
Series 2007-333 Class FT (Ê)
0.500% due 08/15/19	362	360
Ginnie Mae I
6.000% due 2029	8	9
6.500% due 2037	754	829
6.500% due 2038	2,378	2,612
4.500% due 2039	1,881	1,964
5.000% due 2039	289	309
5.500% due 2039	174	188
6.500% due 2039	939	1,032
30 Year TBA (Ï)
4.500%	3,900	4,062
5.500%	410	443
Ginnie Mae II (Ê)
4.375% due 01/01/26	124	128
3.625% due 01/01/27	8	9
2.750% due 01/01/32	46	47
GMAC Mortgage Corp. Loan Trust (Ê) Series 2004-JR1 Class A6 0.797% due 12/25/33	38	37
Government National Mortgage Association (Ê)
Series 1999-40 Class FE
0.900% due 11/16/29	68	68
Series 2000-29 Class F
0.848% due 09/20/30	14	14
Series 2007-26 Class SD Interest Only STRIP
6.450% due 05/16/37	3,876	448
Greenwich Capital Commercial Funding Corp.
Series 2003-C2 Class A2
4.022% due 01/05/36	4	4
Series 2004-GG1 Class A7
5.317% due 06/10/36	465	497
Series 2006-GG7 Class A4
6.085% due 07/10/38	1,105	1,155
Series 2007-GG9 Class A4
5.444% due 03/10/39	315	316
GS Mortgage Securities Corp. II
Series 2006-GG6 Class A4
5.553% due 04/10/38	320	329
Series 2006-GG8 Class AAB
5.535% due 11/10/39	200	215


42		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

GSR Mortgage Loan Trust
Series 2005-AR7 Class 6A1
5.209% due 11/25/35	188	176
Series 2006-3F Class 2A3
5.750% due 03/25/36	460	396
Series 2007-AR1 Class 1A1
3.565% due 03/25/37	1,824	1,143
Harborview Mortgage Loan Trust
Series 2005-3 Class 2A1A (Ê)
0.588% due 06/19/35	1,455	835
Series 2005-4 Class 3A1
2.964% due 07/19/35	127	100
Series 2005-14 Class 3A1A
5.225% due 12/19/35	59	44
Indymac Index Mortgage Loan Trust
Series 2005-AR1 Class A1
5.185% due 09/25/35	544	397
Series 2006-AR2 Class A2 (Ê)
0.427% due 11/25/36	42	20
Series 2006-AR3 Class 2A1A (Ê)
0.517% due 01/25/37	584	307
Series 2007-AR5 Class 1A1
5.367% due 05/25/37	711	352
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2004-LN2 Class A1
4.475% due 07/15/41	250	256
Series 2005-LDP Class A3A1
4.871% due 10/15/42	210	213
Series 2005-LDP Class A4
4.918% due 10/15/42	325	340
5.360% due 12/15/44	390	415
Series 2006-CB1 Class A4
5.552% due 05/12/45	220	231
Series 2006-LDP Class A3B
5.447% due 05/15/45	250	260
Series 2006-LDP Class A4
6.064% due 04/15/45	650	693
5.399% due 05/15/45	290	305
Series 2007-CB1 Class A4
5.440% due 06/12/47	1,200	1,198
5.937% due 02/12/49	340	343
Series 2007-LD1 Class A4
5.882% due 02/15/51	380	381
Series 2007-LDP Class A3
5.420% due 01/15/49	700	684
JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1 (Ê)
5.017% due 02/25/35	74	74
Series 2005-A5 Class TA1
5.429% due 08/25/35	670	671
Series 2005-S3 Class 1A2
5.750% due 01/25/36	106	93
Series 2007-A1 Class 2A2 (Ê)
3.547% due 07/25/35	463	429
Series 2007-A4 Class 3A1
5.874% due 06/25/37	2,512	2,173


	Principal Amount ($) or Shares	Market Value $
Series 2007-S3 Class 1A8
6.000% due 08/25/37	1,564	1,395
LB-UBS Commercial Mortgage Trust
Series 2006-C1 Class A4
5.156% due 02/15/31	1,500	1,560
Series 2006-C3 Class A4
5.661% due 03/15/39	210	217
Series 2006-C4 Class A4
6.080% due 06/15/38	105	113
Series 2007-C6 Class A4
5.858% due 07/15/40	270	268
Lehman Mortgage Trust
Series 2005-3 Class 1A3
5.500% due 01/25/36	343	294
Series 2006-8 Class 2A1 (Ê)
0.767% due 12/25/36	700	359
Series 2007-8 Class 3A1
7.250% due 09/25/37	827	458
Lehman XS Trust (Ê) Series 2007-7N Class 1A2 0.587% due 06/25/47	831	391
MASTR Alternative Loans Trust
Series 2003-4 Class B1
5.725% due 06/25/33	158	106
Series 2004-10 Class 5A6
5.750% due 09/25/34	164	163
MASTR Asset Securitization Trust (Ê)
Series 2003-7 Class 4A35
0.747% due 09/25/33	63	60
Series 2004-4 Class 2A2
0.797% due 04/25/34	29	27
Mellon Residential Funding Corp. (Ê) Series 2000-TBC Class A1 0.817% due 06/15/30	124	107
Merrill Lynch Floating Trust (Ê)(Þ) Series 2006-1 Class A1 0.420% due 06/15/22	550	521
Merrill Lynch Mortgage Investors, Inc. (Ê) Series 2005-A10 Class A 0.557% due 02/25/36	84	64
Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-6 Class A4
5.485% due 03/12/51	100	96
Series 2007-7 Class A4
5.810% due 06/12/50	1,160	1,134
MLCC Mortgage Investors, Inc. (Ê)
Series 2004-HB1 Class A2
1.150% due 04/25/29	28	23
Series 2005-3 Class 5A
0.597% due 11/25/35	52	45
Morgan Stanley Capital I
Series 2005-HQ6 Class A4A
4.989% due 08/13/42	740	769
Series 2005-IQ1 Class AAB
5.178% due 09/15/42	415	434


Core Bond Fund		43

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Series 2006-HQ1 Class A4
5.328% due 11/12/41	130	135
Series 2006-HQ9 Class A4
5.731% due 07/12/44	295	316
Series 2007-IQ1 Class A4
5.809% due 12/12/49	320	331
Series 2007-T27 Class A4
5.802% due 06/11/42	675	707
Prime Mortgage Trust (Ê) Series 2004-CL1 Class 1A2 0.747% due 02/25/34	21	19
Residential Accredit Loans, Inc.
Series 2004-QS5 Class A6 (Ê)
0.947% due 04/25/34	38	35
Series 2004-QS8 Class A4 (Ê)
0.747% due 06/25/34	147	129
Series 2005-QA8 Class NB3
5.474% due 07/25/35	185	126
Series 2005-QO5 Class A1 (Ê)
1.413% due 01/25/46	1,816	967
Series 2005-QS1 Class 2A3
5.750% due 09/25/35	453	345
Series 2006-QS6 Class 1A13
6.000% due 06/25/36	190	134
Series 2007-QH9 Class A1
6.435% due 11/25/37	877	402
Series 2007-QO4 Class A1 (Ê)
0.547% due 05/25/47	1,478	761
Residential Asset Securitization Trust
Series 2003-A15 Class 1A2 (Ê)
0.797% due 02/25/34	185	164
Series 2005-A10 Class A3
5.500% due 09/25/35	377	289
Series 2006-A9C Class A6
6.000% due 09/25/36	278	148
Series 2007-A5 Class 2A3
6.000% due 05/25/37	92	71
Residential Funding Mortgage Securities I
Series 2003-S5 Class 1A2 (Ê)
0.797% due 11/25/18	91	91
Series 2003-S14 Class A5 (Ê)
0.747% due 07/25/18	104	85
Series 2005-SA4 Class 2A1
5.042% due 09/25/35	478	416
Series 2006-SA4 Class 2A1
6.098% due 11/25/36	306	234
Sequoia Mortgage Trust (Ê) Series 2001-5 Class A 0.698% due 10/19/26	49	40
Structured Adjustable Rate Mortgage Loan Trust
Series 2004-12 Class 3A2
2.548% due 09/25/34	49	42
Series 2004-16 Class 3A1
2.628% due 11/25/34	193	168
Series 2005-21 Class 7A1
5.959% due 11/25/35	999	791


	Principal Amount ($) or Shares	Market Value $
Series 2006-12 Class 2A1
5.729% due 01/25/37	663	493
Structured Asset Mortgage Investments, Inc. (Ê)
Series 2005-AR5 Class A3
0.598% due 07/19/35	141	127
Series 2006-AR2 Class A1
0.577% due 02/25/36	471	267
Series 2006-AR8 Class A1A
0.547% due 10/25/36	653	361
Suntrust Adjustable Rate Mortgage Loan Trust (Ê) Series 2007-2 Class 3A3 5.688% due 04/25/37	3,486	2,847
Thornburg Mortgage Securities Trust (Ê)
Series 2003-2 Class A1
1.027% due 04/25/43	53	49
Series 2006-5 Class A1
0.467% due 10/25/46	616	601
Series 2006-6 Class A1
0.457% due 11/25/46	85	81
Wachovia Bank Commercial Mortgage Trust Series 2005-C21 Class A4 5.382% due 10/15/44	1,000	1,070
Washington Mutual Alternative Mortgage Pass-Through Certificates
Series 2005-4 Class CB11
5.500% due 06/25/35	90	69
Series 2007-OA1 Class 2A (Ê)
1.141% due 12/25/46	618	248
Washington Mutual Mortgage Pass Through Certificates
Series 2003-S9 Class A2 (Ê)
0.897% due 10/25/33	121	119
Series 2005-AR1 Class 1A1
4.800% due 10/25/35	128	120
Series 2005-AR1 Class A1A1 (Ê)
0.637% due 10/25/45	29	23
0.617% due 12/25/45	352	265
Series 2005-AR6 Class B3 (Ê)(Å)
1.007% due 04/25/45	192	12
Series 2006-AR2 Class 1A1
5.252% due 03/25/37	537	442
Series 2007-HY3 Class 4B1
5.293% due 03/25/37	124	9
Series 2007-HY4 Class 1A1 (Ê)
5.416% due 04/25/37	117	88
Wells Fargo Mortgage Backed Securities Trust
Series 2006-2 Class 2A3
5.500% due 03/25/36	285	258
Series 2006-6 Class 1A22 (Ê)
6.000% due 05/25/36	1,300	1,125
Series 2006-AR1 Class 4A1 (Ê)
5.487% due 07/25/36	58	46
Series 2006-AR1 Class A1 (Ê)
5.130% due 10/25/36	1,238	1,003
Series 2006-AR2 Class 2A1
4.807% due 03/25/36	221	196


44		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares		Market Value $

Series 2007-8 Class 1A16
6.000% due 07/25/37		258	224
Series 2007-10 Class 2A5
6.250% due 07/25/37		108	99

			155,044


Municipal Bonds - 1.7%
Chicago Transit Authority Revenue Bonds 6.899% due 12/01/40		400	444
City of New York New York General Obligation Unlimited 6.246% due 06/01/35		1,100	1,109
County of Clark Nevada Revenue Bonds 6.820% due 07/01/45		100	112
Illinois Municipal Electric Agency Revenue Bonds 6.832% due 02/01/35		100	110
Los Angeles Unified School District General Obligation Unlimited (µ) 4.500% due 07/01/22		400	406
Missouri Higher Education Loan Authority (Ê) Series 2010-1 Class A1 1.447% due 11/26/32		971	978
North Carolina Turnkpike Authority Revenue Bonds 6.700% due 01/01/39		100	107
Northern California Power Agency Revenue Bonds 7.311% due 06/01/40		1,000	1,031
Public Power Generation Agency Revenue Bonds 7.242% due 01/01/41		100	104
State of California General Obligation Unlimited
7.500% due 04/01/34		425	454
7.950% due 03/01/36		110	116
5.650% due 04/01/39 (Ê)		100	105
7.550% due 04/01/39		975	1,046
7.625% due 03/01/40		400	432
State of Illinois General Obligation Unlimited 4.071% due 01/01/14		100	99
State of Louisiana Revenue Bonds (Ê) 3.000% due 05/01/43		400	405
University of California Revenue Bonds 6.270% due 05/15/31		400	411

			7,469

Non-US Bonds - 1.3%
Canadian Government Bond 2.000% due 12/01/14	CAD	1,000	930
Deutsche Bank AG
10.000% due 07/17/17	IDR	3,300,000	400
10.500% due 08/19/30 (Å)	IDR	1,000,000	118
FCE Bank plc 7.125% due 01/15/13	EUR	600	737
Federative Republic of Brazil
12.500% due 01/05/22	BRL	300	188
10.250% due 01/10/28	BRL	1,400	782


	Principal Amount ($) or Shares		Market Value $
Fortis Bank Nederland Holding NV 3.000% due 04/17/12	EUR	200	251
Hellas Telecommunications Luxembourg V (Ê) Series REGS 4.644% due 10/15/12	EUR	126	46
Impress Holdings BV (Ê) Series REGS 3.769% due 09/15/13	EUR	125	144
Mexican Bonos Series MI10 9.000% due 12/20/12	MXN	14,800	1,240
Morgan Stanley (Ê) 1.029% due 03/01/13	EUR	600	689
Societe Financement de l’Economie Francaise 2.125% due 05/20/12	EUR	100	125

			5,650


United States Government Agencies - 0.9%
Federal Home Loan Banks 4.500% due 09/13/19		1,100	1,193
Federal Home Loan Mortgage Corp. 1.125% due 07/27/12		100	101
Freddie Mac 5.000% due 11/13/14		2,200	2,487

			3,781


United States Government Treasuries - 15.1%
United States Treasury Inflation Indexed Bonds
2.000% due 01/15/16		1,058	1,141
2.375% due 01/15/25		231	257
2.000% due 01/15/26		110	116
2.375% due 01/15/27		540	599
1.750% due 01/15/28		3,208	3,254
United States Treasury Principal
Zero coupon due 05/15/21		100	69
Zero coupon due 11/15/21		1,938	1,295
United States Treasury Notes
1.000% due 04/30/12 (Ñ)		3,900	3,929
0.750% due 05/31/12 (Ñ)		4,300	4,312
0.625% due 06/30/12		7,300	7,301
1.125% due 06/15/13		600	602
2.375% due 02/28/15		4,785	4,932
2.500% due 04/30/15 (Ñ)		800	828
2.125% due 05/31/15 (Ñ)		200	204
1.875% due 06/30/15		8,245	8,277
2.625% due 04/30/16		800	822
3.250% due 12/31/16		2,725	2,872
3.250% due 03/31/17		3,000	3,161
3.125% due 04/30/17 (Ñ)		900	941
2.625% due 06/30/17		1,200	1,205
3.125% due 05/15/19		2,400	2,450
3.625% due 08/15/19		3,500	3,701
3.375% due 11/15/19		4,855	5,028
3.500% due 05/15/20 (Ñ)		3,200	3,349
8.750% due 05/15/20		500	747
8.000% due 11/15/21		840	1,222
5.375% due 02/15/31 (§)		600	738


Core Bond Fund		45

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

4.375% due 02/15/38	500	541
4.250% due 05/15/39 (Ñ)	335	354
4.375% due 11/15/39 (Ñ)	700	756
4.625% due 02/15/40	200	225
4.375% due 05/15/40	1,200	1,298

		66,526


Total Long-Term Investments (cost $373,191)		378,977


Preferred Stocks - 0.2%
Consumer Discretionary - 0.1%
Motors Liquidation Co. (Æ)	80,000	539


Financial Services - 0.1%
DG Funding Trust (Å)(Æ)	49	382


Total Preferred Stocks (cost $766)		921


Short-Term Investments - 15.6%
Ally Financial, Inc. Series * 7.250% due 03/02/11	525	534
American Express Travel Related Services Co., Inc. (Ê) 0.554% due 06/01/11	100	99
Cellco Partnership / Verizon Wireless Capital LLC (Ê) 3.065% due 05/20/11	400	409
Comcast Corp. 5.500% due 03/15/11	100	103
Countrywide Home Loans, Inc. Series MTNL 4.000% due 03/22/11	290	295
DCP Midstream LLC 6.875% due 02/01/11	20	21
Fannie Mae (ç)(ž) Zero coupon due 10/13/10	3,000	2,999
Federal National Mortgage Association Discount Notes (ç)(ž)
0.010% due 10/04/10	1,345	1,344
0.240% due 11/08/10	8,000	7,994
Freddie Mac (ç)(ž)
0.210% due 09/01/10	5,000	4,999
0.010% due 10/13/10	310	310
General Electric Capital Corp. (Ñ) Series GMTN 5.500% due 04/28/11	220	227
International Lease Finance Corp.
5.450% due 03/24/11	600	591
5.750% due 06/15/11	800	785
Moody’s Corp. Zero coupon due 07/07/10	1,895	1,895
Nisource Finance Corp. 7.875% due 11/15/10	125	128


	Principal Amount ($) or Shares	Market Value $
Progress Energy, Inc. 7.100% due 03/01/11	77	80
Reckson Operating Partnership, LP 5.150% due 01/15/11	92	92
Royal Bank of Scotland PLC (The) (Ê)(Þ) 0.823% due 04/08/11	800	799
Russell U.S. Cash Management Fund (£)	25,006,454	25,006
SLM Corp. (Ê) 0.476% due 07/26/10	50	50
Small Business Administration Series 2000-P10 Class 1 7.449% due 08/01/10	3	3
Sun Life Financial Global Funding, LP (Ê)(Þ) 0.542% due 07/06/10	700	700
United States Treasury BIlls (ç)(ž)(Ñ) 0.090% due 07/01/10	4,000	4,000
United States Treasury Bills (ç)(ž)
0.030% due 07/01/10 (Ñ)	11,000	11,000
0.081% due 08/05/10 (Ñ)	4,055	4,055
0.150% due 08/12/10	180	180
0.219% due 08/26/10 (Ñ)	74	74
UnitedHealth Group, Inc. 5.250% due 03/15/11	95	97


Total Short-Term Investments (cost $68,712)		68,869

Repurchase Agreements - 4.2%
Agreement with Barclays Capital Inc. and State Street Bank & Co. (Tri-party) of $16,600 dated June 30, 2010, at 0.010% to be repurchased at $16,600 on July 1, 2010 collateralized by: $13,340 par United States Treasury Inflation Protected Obligation, valued at $16,742	16,600	16,600
Agreement with Credit Suisse First Boston and State Street Bank & Co. (Tri-party) of $1,900 dated June 30, 2010, at 0.010% to be repurchased at $1,900 on July 1, 2010 collateralized by: $2,078 par United States Treasury Obligations, valued at $1,937	1,900	1,900


Total Repurchase Agreements (cost $18,500)		18,500


Other Securities - 5.2%
State Street Securities Lending Quality Trust (×)	23,128,425	23,047


Total Other Securities (cost $23,128)		23,047


Total Investments - 111.3% (identified cost $484,297)		490,314

Other Assets and Liabilities, Net - (11.3%)		(49,607	)


Net Assets - 100.0%		440,707

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


46		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except contracts)


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


Long Positions
Euro-Bobl Futures (Germany)	31	EUR	3,748	09/10	39
Eurodollar Futures (CME)	90	USD	22,353	09/10	7
Eurodollar Futures (CME)	79	USD	19,598	12/10	82
Eurodollar Futures (CME)	1	USD	248	03/11	3
Long Gilt Bond (UK)	1	GBP	121	09/10	3
United States Treasury 2 Year Notes	114	USD	24,946	09/10	103
United States Treasury 5 Year Notes	114	USD	13,492	09/10	128
United States Treasury 10 Year Notes	102	USD	12,500	09/10	236
United States Treasury 30 Year Bond	60	USD	7,650	09/10	200

Short Positions
Japanese 10 Year Mini Bond (Japan)	5	JPY	708,300	09/10	(93)
United States Treasury 5 Year Notes	23	USD	2,722	09/10	(30)
United States Treasury 10 Year Notes	16	USD	1,961	09/10	(1)


Total Unrealized Appreciation (Depreciation) on Open Futures Contracts					677

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


Core Bond Fund		47

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except contracts)


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

Cross Currency
USD/JPY 1 Year Jul 2010 90.00 Put (2)	USD	1,400	(18	)
Eurodollar Futures Sep 2010 97.38 Put (133)	USD	333	(1	)
Inflationary Floor Mar 2020 0.00 Put (2)	USD	2,400	(25	)
Apr 2020 0.00 Put (1)	USD	5,500	(62	)

Swaptions
(Fund Receives/Fund Pays)
USD Three Month LIBOR/USD 3.250%
Aug 2010 0.00 Call (3)		5,800	(133	)
USD Three Month LIBOR/USD 3.250%
Jan 2011 0.00 Call (1)		1,100	(32	)
USD 4.500%/USD Three Month LIBOR
Aug 2010 0.00 Put (2)		3,400	—
USD 4.750%/USD Three Month LIBOR
Aug 2010 0.00 Put (2)		2,400	—
USD 5.500%/USD Three Month LIBOR
Aug 2010 0.00 Put (3)		17,000	—
USD 6.000%/USD Three Month LIBOR
Aug 2010 0.00 Put (1)		2,000	—
USD 4.000%/USD Three Month LIBOR
Oct 2010 0.00 Put (1)		7,900	(1	)
USD 4.000%/USD Three Month LIBOR
Dec 2010 0.00 Put (2)		10,100	(4	)
USD 5.000%/USD Three Month LIBOR
Jan 2011 0.00 Put (1)		1,100	(1	)
USD 10.000%/USD Three Month LIBOR
Jul 2012 0.00 Put (2)		17,400	(4	)

United States Treasury Notes
10 Year Futures
Aug 2010 119.00 Call (15)	USD	15	(58	)
Aug 2010 122.00 Call (2)	USD	2	(3	)
Aug 2010 114.00 Put (17)	USD	17	(1	)
Aug 2010 117.00 Put (2)	USD	2	—

Total Liability for Options Written (premiums received $570)			(343	)

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


48		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands


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

Bank of America	USD	208	JPY	18,545	09/15/10	2
Bank of America	EUR	169	USD	207	09/15/10	—
Bank of America	EUR	174	GBP	144	09/15/10	(4	)
Bank of America	EUR	174	GBP	144	09/15/10	7
Bank of America	JPY	96,021	USD	1,049	07/14/10	(39	)
Barclays Bank PLC	USD	95	TWD	3,017	08/31/10	(1	)
Barclays Bank PLC	EUR	162	SEK	1,540	09/15/10	(2	)
Barclays Bank PLC	EUR	162	SEK	1,540	09/15/10	2
Barclays Bank PLC	JPY	18,822	NOK	1,366	09/15/10	(9	)
Barclays Bank PLC	JPY	18,822	NOK	1,366	09/15/10	5
Barclays Bank PLC	KRW	285,775	USD	232	07/28/10	(2	)
Barclays Bank PLC	SEK	1,677	USD	207	09/15/10	(8	)
Citibank	USD	1,874	EUR	1,518	08/24/10	(17	)
Citibank	USD	207	GBP	139	09/15/10	1
Citibank	USD	203	NZD	298	09/15/10	—
Citibank	USD	206	NZD	297	09/15/10	(4	)
Citibank	BRL	124	USD	68	08/03/10	—
Citibank	EUR	71	USD	87	07/26/10	—
Citibank	EUR	337	USD	412	09/15/10	—
Citibank	NOK	2,688	EUR	337	09/15/10	(1	)
Citibank	NOK	2,688	EUR	337	09/15/10	2
Citibank	SEK	1,602	EUR	167	09/15/10	—
Citibank	SEK	1,602	EUR	167	09/15/10	(1	)
Credit Suisse First Boston	USD	454	KRW	516,294	07/28/10	(34	)
Credit Suisse First Boston	BRL	82	USD	46	07/12/10	—
Credit Suisse First Boston	CHF	234	AUD	247	09/15/10	(13	)
Credit Suisse First Boston	CHF	234	AUD	247	09/15/10	2
Credit Suisse First Boston	CHF	456	EUR	338	09/15/10	(3	)
Credit Suisse First Boston	CHF	456	EUR	338	09/15/10	(7	)
Credit Suisse First Boston	EUR	192	USD	230	07/15/10	(5	)
Credit Suisse First Boston	EUR	3,173	USD	4,252	07/26/10	372
Credit Suisse First Boston	EUR	170	GBP	140	09/15/10	(2	)
Credit Suisse First Boston	EUR	170	GBP	140	09/15/10	3
Credit Suisse First Boston	GBP	139	EUR	171	09/15/10	1
Credit Suisse First Boston	GBP	139	EUR	171	09/15/10	—
Deutsche Bank	USD	42	KRW	47,242	07/28/10	(3	)
Deutsche Bank	AUD	245	USD	206	09/15/10	1
Deutsche Bank	AUD	254	USD	204	09/15/10	(7	)
Deutsche Bank	IDR	9,719,055	USD	1,044	07/12/10	(26	)
HSBC	USD	206	SEK	1,594	09/15/10	(2	)
HSBC	EUR	171	USD	206	09/15/10	(3	)
HSBC	KRW	12,358	USD	10	07/28/10	—
HSBC	KRW	12,425	USD	10	07/28/10	—
HSBC	KRW	37,073	USD	30	07/28/10	—
HSBC	NOK	1,360	EUR	170	09/15/10	1
HSBC	NOK	1,360	EUR	170	09/15/10	(1	)
HSBC	SEK	1,612	EUR	168	09/15/10	(2	)
HSBC	SEK	1,612	EUR	168	09/15/10	1
JP Morgan	USD	219	AUD	252	07/30/10	(7	)
JP Morgan	USD	207	CNY	1,400	08/25/10	—
JP Morgan	USD	145	KRW	178,685	08/27/10	1
JP Morgan	USD	55	MYR	180	08/30/10	1
JP Morgan	CAD	215	EUR	171	09/15/10	6

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


Core Bond Fund		49

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands


Foreign Currency Exchange Contracts
Counterparty	Amount Sold		Amount Bought		Settlement Date	Unrealized Appreciation (Depreciation) $
JP Morgan	CAD	215	EUR	171	09/15/10	2
JP Morgan	EUR	168	CAD	215	09/15/10	(5	)
JP Morgan	EUR	168	CAD	215	09/15/10	2
JP Morgan	EUR	171	JPY	18,963	09/15/10	(4	)
JP Morgan	EUR	171	JPY	18,963	09/15/10	10
JP Morgan	EUR	272	NOK	2,152	09/15/10	(1	)
JP Morgan	EUR	272	NOK	2,152	09/15/10	(3	)
JP Morgan	GBP	156	USD	234	08/09/10	1
JP Morgan	KRW	178,685	USD	145	07/28/10	(1	)
Morgan Stanley	KRW	12,450	USD	10	07/28/10	—
Morgan Stanley	KRW	24,770	USD	20	07/28/10	—
Royal Bank of Canada	USD	206	CAD	211	09/15/10	(8	)
Royal Bank of Canada	USD	413	EUR	333	09/15/10	(5	)
Royal Bank of Canada	USD	414	EUR	338	09/15/10	(1	)
Royal Bank of Canada	EUR	170	USD	207	09/15/10	(1	)
Royal Bank of Canada	EUR	298	USD	364	09/15/10	(1	)
Royal Bank of Canada	EUR	174	CAD	219	09/15/10	(1	)
Royal Bank of Canada	EUR	174	CAD	219	09/15/10	(6	)
Royal Bank of Canada	JPY	18,933	USD	207	09/15/10	(7	)
Royal Bank of Canada	JPY	19,014	EUR	173	09/15/10	5
Royal Bank of Canada	JPY	19,014	EUR	173	09/15/10	(8	)
Royal Bank of Canada	MXN	846	USD	66	07/02/10	—
Royal Bank of Scotland PLC	USD	155	EUR	126	07/26/10	(1	)
Royal Bank of Scotland PLC	USD	209	EUR	171	09/15/10	—
Royal Bank of Scotland PLC	EUR	587	USD	715	07/26/10	(3	)
Royal Bank of Scotland PLC	SEK	1,620	USD	208	09/15/10	—
State Street Bank and Trust Company	USD	348	CAD	362	09/15/10	(8	)
State Street Bank and Trust Company	SEK	2,507	USD	310	09/15/10	(11	)
UBS	USD	414	SEK	3,245	09/15/10	2
UBS	AUD	257	EUR	173	09/15/10	(7	)
UBS	AUD	257	EUR	173	09/15/10	5
UBS	CAD	795	USD	790	07/07/10	42
UBS	EUR	168	USD	206	09/15/10	1
UBS	EUR	168	NOK	1,340	09/15/10	1
UBS	EUR	168	NOK	1,340	09/15/10	(1	)
UBS	EUR	174	CHF	240	09/15/10	17
UBS	EUR	174	CHF	240	09/15/10	(6	)
UBS	EUR	518	CHF	728	09/15/10	45
UBS	EUR	518	CHF	728	09/15/10	(5	)
Westpac Banking Corporation	USD	205	AUD	235	09/15/10	(9	)
Westpac Banking Corporation	USD	205	NZD	300	09/15/10	—
Westpac Banking Corporation	AUD	243	USD	205	09/15/10	2
Westpac Banking Corporation	AUD	244	USD	204	09/15/10	—
Westpac Banking Corporation	AUD	248	CHF	237	09/15/10	(2	)
Westpac Banking Corporation	AUD	248	CHF	237	09/15/10	15
Westpac Banking Corporation	CHF	225	AUD	245	09/15/10	(4	)
Westpac Banking Corporation	CHF	225	AUD	245	09/15/10	(1	)
Westpac Banking Corporation	EUR	336	USD	413	09/15/10	2
Westpac Banking Corporation	NZD	294	USD	207	09/15/10	7


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

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


50		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands


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

Bank of America	USD	500	3.000%	Three Month LIBOR	12/15/15	16
Barclays Bank PLC	BRL	600	10.835%	Brazil Interbank Deposit Rate	01/02/12	1
Barclays Bank PLC	EUR	2,100	4.259%	Six Month EURIBOR	04/23/20	45
Barclays Bank PLC	EUR	2,370	4.270%	Six Month EURIBOR	05/12/20	51
Barclays Bank PLC	EUR	630	Six Month EURIBOR	4.085%	04/23/40	(54	)
Barclays Bank PLC	EUR	700	Six Month EURIBOR	3.953%	05/12/40	(43	)
Barclays Bank PLC	GBP	4,570	Six Month LIBOR	4.360%	08/10/25	(446	)
Barclays Bank PLC	USD	500	3.000%	Three Month LIBOR	12/15/15	16
Barclays Bank PLC	USD	530	Three Month LIBOR	4.633%	11/15/21	(123	)
Barclays Bank PLC	USD	266	Three Month LIBOR	4.540%	11/15/21	(57	)
Barclays Bank PLC	USD	146	Three Month LIBOR	4.420%	11/15/21	(28	)
Barclays Bank PLC	USD	144	Three Month LIBOR	4.524%	11/15/21	(31	)
BNP Paribas	BRL	300	11.390%	Brazil Interbank Deposit Rate	01/02/12	—
BNP Paribas	BRL	200	12.110%	One Month LIBOR	01/02/14	1
BNP Paribas	EUR	500	2.090%	Consumer Price Index (France)	10/15/10	19
Citibank	EUR	2,100	4.286%	Six Month EURIBOR	04/23/20	48
Citibank	EUR	630	Six Month EURIBOR	4.119%	04/23/40	(57	)
Citibank	USD	100	3.000%	Three Month LIBOR	12/15/15	3
Credit Suisse First Boston	BRL	300	12.480%	Brazil Interbank Deposit Rate	01/02/13	2
Credit Suisse First Boston	GBP	5,450	Six Month LIBOR	3.400%	08/10/15	(339	)
Credit Suisse First Boston	GBP	9,130	4.113%	Six Month LIBOR	08/10/20	801
Deutsche Bank	AUD	200	4.500%	Three Month BBSW	06/15/11	(1	)
Deutsche Bank	KRW	416,000	2.820%	Korean Interbank Offer Rate	01/28/11	—
Deutsche Bank	KRW	200,000	3.870%	Korean Interbank Offer Rate	06/12/11	2
Deutsche Bank	KRW	1,120,000	3.693%	Korean Interbank Offer Rate	06/26/11	5
Deutsche Bank	KRW	467,700	3.620%	Korean Interbank Offer Rate	07/06/11	3
Deutsche Bank	KRW	781,412	3.626%	Three Month LIBOR	07/07/11	5
Deutsche Bank	USD	200	3.000%	Three Month LIBOR	12/15/15	6
Goldman Sachs	BRL	400	10.835%	Brazil Interbank Deposit Rate	01/02/12	1
Goldman Sachs	BRL	600	10.990%	Brazil Interbank Deposit Rate	01/02/12	1
Goldman Sachs	BRL	1,200	11.890%	Brazil Interbank Deposit Rate	01/02/13	2
Goldman Sachs	BRL	400	12.650%	One Month LIBOR	01/02/14	7
HSBC	BRL	400	11.140%	One Month LIBOR	01/02/12	3
HSBC	BRL	400	11.360%	Brazil Interbank Deposit Rate	01/02/12	2
HSBC	BRL	1,200	11.890%	Brazil Interbank Deposit Rate	01/02/13	2
HSBC	BRL	100	12.540%	One Month LIBOR	01/02/14	1
HSBC	MXN	4,900	7.330%	Mexico Interbank 28 Day Deposit Rate	01/28/15	14
HSBC	USD	100	4.000%	Three Month LIBOR	06/16/15	10
JP Morgan	BRL	500	12.170%	Brazil Interbank Deposit Rate	01/02/13	3
JP Morgan	KRW	405,000	2.830%	Korean Interbank Offer Rate	01/28/11	—
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	6
JP Morgan	KRW	371,651	3.660%	Korean Interbank Offer Rate	07/08/11	2
Merrill Lynch	BRL	700	11.980%	Brazil Interbank Deposit Rate	01/02/12	16
Merrill Lynch	BRL	800	12.540%	Brazil Interbank Deposit Rate	01/02/12	28
Merrill Lynch	BRL	100	14.765%	Brazil Interbank Deposit Rate	01/02/12	8
Merrill Lynch	BRL	500	10.990%	Brazil Interbank Deposit Rate	01/02/12	1
Morgan Stanley	BRL	200	11.630%	Brazil Interbank Deposit Rate	01/02/12	—
Morgan Stanley	BRL	100	12.590%	Brazil Interbank Deposit Rate	01/02/13	1
Morgan Stanley	BRL	400	12.510%	Brazil Interbank Deposit Rate	01/02/14	6
Morgan Stanley	USD	2,300	3.000%	Three Month LIBOR	12/15/15	71
Royal Bank of Scotland	CAD	1,500	5.700%	Canadian Dealer Offer Rate	12/18/24	10
Royal Bank of Scotland	USD	700	4.000%	Three Month LIBOR	12/16/14	78

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


Core Bond Fund		51

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands

Interest Rate Swaps Contracts

Counterparty

Notional
Amount

Fund Receives

Fund Pays

Termination
Date

Market
Value
$

UBS

AUD

1,900

4.500%

Three Month LIBOR

06/15/11

)

UBS

AUD

1,600

6.000%

Six Month BBSW

09/15/12

UBS

BRL

800

10.575%

Brazil Interbank Deposit Rate

01/02/12

(17

)

UBS

BRL

300

12.070%

Brazil Interbank Deposit Rate

01/02/13

UBS

BRL

200

12.250%

One Month LIBOR

01/02/14

Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $105 (å)

126


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

Centex Corporation	JP Morgan	1.344%	USD	325	(4.400%	)	12/20/13	(34	)
Darden Restaurants, Inc.	Deutsche Bank	0.887%	USD	400	(2.250%	)	03/20/14	(20	)
DR Horton, Inc.	Citibank	3.006%	USD	100	(1.000%	)	09/20/16	11
DR Horton, Inc.	Deutsche Bank	3.006%	USD	80	(1.000%	)	09/20/16	8
DR Horton, Inc.	Goldman Sachs	3.006%	USD	80	(1.000%	)	09/20/16	9
Federative Republic of Brazil	Barclays Bank PLC	1.342%	USD	500	1.000%		06/20/15	(8	)
Federative Republic of Brazil	Deutsche Bank	1.342%	USD	1,000	1.000%		06/20/15	(16	)
Federative Republic of Brazil	Goldman Sachs	1.342%	USD	500	1.000%		06/20/15	(8	)
Ford Motor Credit Co.	Barclays Bank PLC	4.142%	USD	1,000	6.150%		09/20/12	42
Gaz Capital for Gazprom	Barclays Bank PLC	2.576%	USD	300	1.600%		12/20/12	(6	)
Gaz Capital for Gazprom	Morgan Stanley	2.610%	USD	200	2.480%		02/20/13	2
GE Capital Corp.	Citibank	2.030%	USD	200	4.000%		12/20/13	14
GE Capital Corp.	Deutsche Bank	2.030%	USD	100	4.900%		12/20/13	10
Japan Government Bond	Bank of America	0.884%	USD	300	1.000%		03/20/15	2
Japan Government Bond	Deutsche Bank	0.884%	USD	100	1.000%		03/20/15	1
Japan Government Bond	JP Morgan	0.884%	USD	600	1.000%		03/20/15	3
Lowe’s Companies, Inc.	Citigroupglobal Markets, Inc.	0.522%	USD	340	(1.450%	)	03/20/14	(13	)
Mexico Government International Bond	Morgan Stanley	0.835%	USD	100	0.750%		01/20/12	—
Pulte Homes, Inc.	Goldman Sachs	3.063%	USD	725	(1.000%	)	09/20/16	79
Pulte Homes, Inc.	JP Morgan	2.534%	USD	1,000	(3.870%	)	03/20/14	(47	)
SLM Corp.	Citibank	5.488%	USD	200	4.850%		03/20/13	(2	)
SLM Corp.	Citibank	5.475%	USD	1,800	5.000%		06/20/13	(8	)
Target Corp.	Credit Suisse First Boston	0.508%	USD	125	(1.000%	)	12/20/14	(3	)
Target Corp.	Deutsche Bank	0.508%	USD	125	(1.000%	)	12/20/14	(3	)
The Home Depot, Inc.	Citigroupglobal Markets, Inc.	0.501%	USD	340	(3.250%	)	03/20/14	(37	)
Toll Brothers, Inc.	Credit Suisse First Boston	2.210%	USD	255	(1.000%	)	09/20/16	17
United Kingdom Gilt	Deutsche Bank	0.698%	USD	300	1.000%		12/20/14	3
United Kingdom Gilt	JP Morgan	0.719%	USD	300	1.000%		03/20/15	3
United Kingdom Gilt	JP Morgan	0.719%	USD	700	1.000%		03/20/15	7
United Kingdom Gilt	Morgan Stanley	0.698%	USD	100	1.000%		12/20/14	1
United Kingdom Gilt	Societe Generale	0.719%	USD	500	1.000%		03/20/15	5


Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - $7								12

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


52		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands


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

ABX - HE Index for Sub-Prime Home Equity Sector	Barclays Bank PLC	USD	1,292	0.760%		01/25/38	(743	)
ABX - HE Index for Sub-Prime Home Equity Sector	Citibank	USD	595	0.170%		05/25/46	(498	)
ABX - HE Index for Sub-Prime Home Equity Sector	JP Morgan	USD	1,287	0.090%		08/25/37	(743	)
CMBX AJ Index	Bank of America	USD	100	(0.840%	)	10/12/52	21
CMBX AJ Index	Bank of America	USD	460	(0.840%	)	10/12/52	96
CMBX AJ Index	Barclays Bank PLC	USD	340	(0.840%	)	10/12/52	70
CMBX AJ Index	Barclays Bank PLC	USD	360	(0.840%	)	10/12/52	75
CMBX AJ Index	Credit Suisse First Boston	USD	930	(0.840%	)	10/12/52	194
Dow Jones CDX Index	Barclays Bank PLC	USD	200	5.000%		06/20/15	21
Dow Jones CDX Index	Deutsche Bank	USD	772	0.708%		12/20/12	10
Dow Jones CDX Index	Deutsche Bank	USD	1,000	5.000%		06/20/15	104
Dow Jones CDX Index	JP Morgan	USD	386	0.553%		12/20/17	4
Dow Jones CDX Index	Pershing LLC 1st Republic P.B. CNS	USD	193	0.548%		12/20/17	1


Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - ($1,089)							(1,388	)


Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($1,082) (å)							(1,376	)

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


Core Bond Fund		53

Russell Investment Funds

Core Bond Fund

Presentation of Portfolio Holdings — June 30, 2010 (Unaudited)

(Amounts in thousands)


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

Long-Term Investments
Asset-Backed Securities	$	—		$	21,457		$	—		$	21,457		4.9
Corporate Bonds and Notes		—			89,746			—			89,746		20.4
International Debt		—			27,874			—			27,874		6.3
Loan Agreements		—			1,430			—			1,430		0.3
Mortgage-Backed Securities		—			155,044			—			155,044		35.2
Municipal Bonds		—			7,469			—			7,469		1.7
Non-US Bonds		—			5,650			—			5,650		1.3
United States Government Agencies		—			3,781			—			3,781		0.9
United States Government Treasuries		—			66,526			—			66,526		15.1
Preferred Stocks		539			—			382			921		0.2
Short-Term Investments		—			68,869			—			68,869		15.6
Repurchase Agreements		—			18,500			—			18,500		4.2
Other Securities		—			23,047			—			23,047		5.2

Total Investments		539			489,393			382			490,314		111.3

Other Assets and Liabilities, Net													(11.3	)


													100.0

Other Financial Instruments
Futures Contracts		677			—			—			677		0.2
Options Written		(81	)		(175	)		(87	)		(343	)	(0.1	)
Foreign Currency Exchange Contracts		—			254			—			254		0.1
Interest Rate Swap Contracts		—			21			—			21		—	*
Credit Default Swaps		—			(294	)		—			(294	)	(0.1	)

Total Other Financial Instruments**		596			(194	)		(87	)		315

*	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.

For a description of the levels see note 2 in the Notes to Financial Statements.

Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending June 30, 2010 were less than 1% of net assets.

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


54		Core Bond Fund

Russell Investment Funds

Core Bond Fund

Fair Value of Derivative Instruments — June 30, 2010 (Unaudited)

Amounts in thousands


Derivatives not accounted for as hedging instruments	Credit Contracts		Foreign Currency Contracts		Interest Rate Contracts

Location: Statement of Assets and Liabilities - Assets
Unrealized appreciation on foreign currency exchange contracts	$	—	$	567	$	—
Daily variation margin on futures contracts*		—		—		801
Interest rate swap contracts, at market value		—		—		1,328
Credit default swap contracts, at market value		813		—		—

Total	$	813	$	567	$	2,129

Location: Statement of Assets and Liabilities - Liabilities
Unrealized depreciation on foreign currency exchange contracts	$	—	$	313	$	—
Daily variation margin on futures contracts*		—		—		124
Interest rate swap contracts, at market value		—		—		1,202
Credit default swap contracts, at market value		2,189		—		—
Options written, at market value		—		—		343

Total	$	2,189	$	313	$	1,669


Derivatives not accounted for as hedging instruments	Credit Contracts			Foreign Currency Contracts		Interest Rate Contracts

Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	—		$	—	$	2,647
Options Written		—			—		411
Credit default swap contracts		(342	)		—		—
Interest rate swap contracts		—			—		611
Foreign currency-related transactions		—			412		—

Total	$	(342	)	$	412	$	3,669

Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	—		$	—	$	1,591
Options Written		—			—		19
Credit default swap contracts		587			—		—
Interest rate swap contracts		—			—		(488	)
Foreign currency-related transactions		—			182		—

Total	$	587		$	182	$	1,122

*	Includes cumulative appreciation/depreciation of futures contracts as reported in Schedule of Investments. Only current day’s variation margin is reported within the statement of assets & liabilities

For further disclosure on derivatives see note 2 in Notes to Financial Statements.

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


Core Bond Fund		55

Russell Investment Funds

Real Estate Securities Fund

Shareholder Expense Example — June 30, 2010 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	Actual Performance		Hypothetical Performance (5% return before expenses)

Beginning Account Value
January 1, 2010	$	1,000.00	$	1,000.00
Ending Account Value
June 30, 2010	$	1,034.90	$	1,020.03
Expenses Paid During Period*	$	4.84	$	4.81

*	Expenses are equal to the Fund’s annualized expense ratio of 0.96% (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).


56		Real Estate Securities Fund

Russell Investment Funds

Real Estate Securities Fund

Schedule of Investments — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Common Stocks - 96.1%
Diversified - 8.4%
BGP Holdings PLC (Æ)(ö)	926,311	—
BR Properties SA	43,935	313
British Land Co. PLC (ö)	58,781	376
CapitaLand, Ltd.	197,512	504
Cousins Properties, Inc. (ö)(Ñ)	109,527	738
Dexus Property Group (ö)	627,737	404
FKP Property Group (ö)	168,636	96
Forest City Enterprises, Inc. Class A (Æ)(Ñ)	136,408	1,544
Glorious Property Holdings, Ltd.	802,666	228
Goldcrest Co., Ltd.	4,956	86
GPT Group (ö)	121,634	286
Great Eagle Holdings, Ltd.	34,955	89
Hang Lung Properties, Ltd. - ADR	132,000	506
Henderson Land Development Co., Ltd.	45,403	214
Hysan Development Co., Ltd.	80,460	226
IVG Immobilien AG (Æ)	7,561	45
Keppel Land, Ltd.	121,005	333
Kerry Properties, Ltd.	38,500	165
KWG Property Holding, Ltd.	280,691	173
Land Securities Group PLC (ö)	87,939	721
Mirvac Group (ö)	346,408	379
Mitsubishi Estate Co., Ltd.	83,000	1,152
Mitsui Fudosan Co., Ltd.	67,104	938
New World Development, Ltd.	433,995	701
Norwegian Property ASA (Æ)	79,112	103
Sponda OYJ	94,442	284
Stockland (ö)	308,236	958
Sumitomo Realty & Development Co., Ltd.	17,000	290
Sun Hung Kai Properties, Ltd.	141,606	1,925
Tokyu Land Corp.	12,000	42
Unibail-Rodamco SE (ö)	6,420	1,042
Vornado Realty Trust (ö)	252,117	18,392
Washington Real Estate Investment Trust (ö)	30,857	851
Wharf Holdings, Ltd.	167,000	808
Wihlborgs Fastigheter AB	4,938	94

		35,006


Free Standing Retail - 0.6%
National Retail Properties, Inc. (ö)(Ñ)	94,139	2,019
Realty Income Corp. (ö)(Ñ)	15,900	482

		2,501


Health Care - 11.4%
Brookdale Senior Living, Inc. (Æ)(Ñ)	100,201	1,503
HCP, Inc. (ö)	353,599	11,404
Health Care REIT, Inc. (ö)	215,563	9,079
Nationwide Health Properties, Inc. (ö)	277,729	9,934
Omega Healthcare Investors, Inc. (ö)(Ñ)	202,285	4,032
Senior Housing Properties Trust (ö)	217,248	4,369
Ventas, Inc. (ö)	150,798	7,080

		47,401


	Principal Amount ($) or Shares	Market Value $
Industrial - 4.5%
AMB Property Corp. (ö)(Ñ)	207,223	4,913
Ascendas Real Estate Investment Trust (ö)	144,000	186
DCT Industrial Trust, Inc. (ö)(Ñ)	807,558	3,650
EastGroup Properties, Inc. (ö)(Ñ)	48,799	1,736
First Potomac Realty Trust (ö)(Ñ)	103,100	1,482
Goodman Group (ö)	750,375	396
ProLogis (ö)(Ñ)	640,459	6,488

		18,851


Lodging/Resorts - 6.1%
DiamondRock Hospitality Co. (ö)	130,294	1,071
Hersha Hospitality Trust (ö)(Ñ)	217,610	984
Hospitality Properties Trust (ö)	68,326	1,442
Host Hotels & Resorts, Inc. (ö)(Ñ)	1,003,901	13,532
Hyatt Hotels Corp. (Æ)(Ñ)	31,352	1,163
LaSalle Hotel Properties (ö)	44,200	909
Marriott International, Inc. Class A (Ñ)	71,147	2,130
Pebblebrook Hotel Trust (Æ)(ö)(Ñ)	38,700	729
Shangri-La Asia, Ltd.	228,576	421
Starwood Hotels & Resorts Worldwide, Inc. (ö)(Ñ)	42,100	1,744
Strategic Hotels & Resorts, Inc. (Æ)(ö)	132,252	581
Sunstone Hotel Investors, Inc. (Æ)(ö)	69,460	690

		25,396


Mixed Industrial/Office - 3.6%
Duke Realty Corp. (ö)(Ñ)	206,383	2,342
Liberty Property Trust (ö)(Ñ)	363,591	10,490
PS Business Parks, Inc. (ö)(Ñ)	37,835	2,110

		14,942


Office - 11.6%
Alexandria Real Estate Equities, Inc. (ö)	74,230	4,704
BioMed Realty Trust, Inc. (ö)(Ñ)	247,158	3,977
Boston Properties, Inc. (ö)	234,339	16,718
Brookfield Properties Corp.	76,182	1,070
CapitaCommercial Trust (Æ)(ö)	505,000	437
Commonwealth Property Office Fund (ö)	147,402	115
Corporate Office Properties Trust SBI MD (ö)(Ñ)	15,951	602
DA Office Investment Corp. Class A (ö)	32	71
Derwent London PLC (ö)	14,324	266
Douglas Emmett, Inc. (ö)(Ñ)	75,216	1,070
Fabege AB	52,253	310
Great Portland Estates PLC (ö)	42,164	180
Highwoods Properties, Inc. (ö)(Ñ)	23,575	654
Hongkong Land Holdings, Ltd.	219,300	1,084
Hudson Pacific Properties, Inc. (Æ)(ö)	47,933	827
ICADE (ö)	2,809	237
Japan Prime Realty Investment Corp. Class A (ö)	84	176
Japan Real Estate Investment Corp. Class A (ö)	3	24
Kenedix Realty Investment Corp. Class A (ö)	40	111


Real Estate Securities Fund		57

Russell Investment Funds

Real Estate Securities Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands (except share amounts)


	Principal Amount ($) or Shares	Market Value $

Kilroy Realty Corp. (ö)(Ñ)	204,028	6,066
Mack-Cali Realty Corp. (ö)	48,377	1,438
Nippon Building Fund, Inc. Class A (ö)	45	356
Orix JREIT, Inc. Class A (ö)	3	12
Piedmont Office Realty Trust, Inc. (ö)(Ñ)	179,199	3,356
SL Green Realty Corp. (ö)(Ñ)	77,903	4,288

		48,149


Regional Malls - 12.4%
BR Malls Participacoes SA	8,751	114
CapitaMalls Asia, Ltd.	139,000	207
Macerich Co. (The) (ö)(Ñ)	289,930	10,820
Simon Property Group, Inc. (ö)	470,383	37,983
Taubman Centers, Inc. (ö)(Ñ)	19,724	742
Westfield Group (ö)	138,706	1,412

		51,278


Residential - 16.2%
Apartment Investment & Management Co. Class A (ö)	112,570	2,180
AvalonBay Communities, Inc. (ö)	151,178	14,116
Boardwalk Real Estate Investment Trust (ö)	15,341	577
BRE Properties, Inc. Class A (ö)	58,726	2,169
Camden Property Trust (ö)(Ñ)	217,826	8,898
China Overseas Land & Investment, Ltd.	247,200	460
China Resources Land, Ltd.	98,000	184
Colonial Properties Trust (ö)(Ñ)	56,594	822
Deutsche Wohnen AG (Æ)	457	4
Education Realty Trust, Inc. (ö)(Ñ)	66,534	401
Equity Lifestyle Properties, Inc. (ö)(Ñ)	64,899	3,130
Equity Residential (ö)	509,651	21,222
Essex Property Trust, Inc. (ö)(Ñ)	79,518	7,756
Home Properties, Inc. (ö)(Ñ)	28,057	1,265
Mid-America Apartment Communities, Inc. (ö)	12,646	651
Post Properties, Inc. (ö)(Ñ)	73,233	1,665
UDR, Inc. (ö)(Ñ)	90,392	1,729
Unite Group PLC (Æ)	5,272	14

		67,243


Self Storage - 5.6%
Extra Space Storage, Inc. (ö)(Ñ)	252,800	3,514
Public Storage (ö)	204,131	17,945
Sovran Self Storage, Inc. (ö)	47,739	1,644

		23,103


Shopping Centers - 9.6%
Acadia Realty Trust (ö)	58,337	981
Alexander’s, Inc. (ö)	2,225	674
Atrium European Real Estate, Ltd.	23,403	101
Corio NV (ö)	5,952	289
Developers Diversified Realty Corp. (ö)(Ñ)	433,561	4,292
Excel Trust, Inc. (Æ)(ö)	21,700	260


	Principal Amount ($) or Shares	Market Value $
Federal Realty Investment Trust (ö)(Ñ)	89,327	6,277
Hammerson PLC (ö)	93,498	472
Inland Real Estate Corp. (ö)(Ñ)	30,580	242
Kimco Realty Corp. (ö)(Ñ)	429,370	5,771
Kite Realty Group Trust (ö)	247,500	1,035
Primaris Retail Real Estate Investment Trust (ö)	17,365	285
Ramco-Gershenson Properties Trust (ö)	70,100	708
Regency Centers Corp. (ö)(Ñ)	313,283	10,777
Retail Opportunity Investments Corp. (Ñ)	188,790	1,822
RioCan Real Estate Investment Trust (ö)	3,255	58
Tanger Factory Outlet Centers (ö)(Ñ)	56,090	2,321
Weingarten Realty Investors (ö)	174,380	3,322

		39,687


Specialty - 6.1%
Digital Realty Trust, Inc. (ö)(Ñ)	210,408	12,136
DuPont Fabros Technology, Inc. (ö)	130,508	3,205
Entertainment Properties Trust (ö)	60,700	2,311
Plum Creek Timber Co., Inc. (ö)(Ñ)	129,546	4,473
Rayonier, Inc. (ö)(Ñ)	73,366	3,230

		25,355


Total Common Stocks (cost $328,500)		398,912


Short-Term Investments - 2.8%
Russell U.S. Cash Management Fund (£)	11,750,214	11,750


Total Short-Term Investments (cost $11,750)		11,750


Other Securities - 23.3%
State Street Securities Lending Quality Trust (×)	96,900,458	96,533


Total Other Securities (cost $96,900)		96,533


Total Investments - 122.2% (identified cost $437,150)		507,195

Other Assets and Liabilities, Net - (22.2%)		(92,138	)


Net Assets - 100.0%		415,057

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


58		Real Estate Securities Fund

Russell Investment Funds

Real Estate Securities Fund

Schedule of Investments, continued — June 30, 2010 (Unaudited)

Amounts in thousands


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

Royal Bank of Scotland PLC	USD	34	AUD	40	07/02/10	(1	)
Royal Bank of Scotland PLC	USD	8	HKD	60	07/02/10	—
Royal Bank of Scotland PLC	USD	12	HKD	96	07/02/10	—
Royal Bank of Scotland PLC	USD	18	HKD	142	07/02/10	—
Royal Bank of Scotland PLC	USD	4	JPY	378	07/02/10	—
Royal Bank of Scotland PLC	AUD	4	USD	3	07/02/10	—
Royal Bank of Scotland PLC	AUD	4	USD	3	07/02/10	—
Royal Bank of Scotland PLC	AUD	91	USD	77	07/02/10	—
Royal Bank of Scotland PLC	GBP	1	USD	2	07/02/10	—
Royal Bank of Scotland PLC	HKD	112	USD	14	07/02/10	—
Royal Bank of Scotland PLC	JPY	1,271	USD	14	07/02/10	—
Royal Bank of Scotland PLC	JPY	1,470	USD	17	07/02/10	—
Royal Bank of Scotland PLC	SEK	81	USD	10	07/02/10	—
State Street Bank and Trust Company	USD	5	AUD	6	07/01/10	—
State Street Bank and Trust Company	USD	26	AUD	30	07/01/10	—
State Street Bank and Trust Company	USD	15	HKD	118	07/02/10	—
State Street Bank and Trust Company	USD	30	HKD	231	07/02/10	—
State Street Bank and Trust Company	USD	36	HKD	277	07/02/10	—
State Street Bank and Trust Company	USD	4	JPY	378	07/01/10	—
State Street Bank and Trust Company	AUD	8	USD	7	07/01/10	—
State Street Bank and Trust Company	AUD	15	USD	13	07/01/10	—
State Street Bank and Trust Company	EUR	2	USD	2	07/01/10	—
State Street Bank and Trust Company	EUR	5	USD	6	07/01/10	—
State Street Bank and Trust Company	EUR	2	USD	2	07/02/10	—
State Street Bank and Trust Company	GBP	1	USD	2	07/01/10	—
State Street Bank and Trust Company	JPY	1,475	USD	17	07/01/10	—
State Street Bank and Trust Company	SEK	64	USD	8	07/01/10	1


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

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


Real Estate Securities Fund		59

Russell Investment Funds

Real Estate Securities Fund

Presentation of Portfolio Holdings — June 30, 2010 (Unaudited)

Amounts in thousands


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

Common Stocks
Diversified	$	35,006	$	—	$	—	$	35,006	8.4
Free Standing Retail		2,501		—		—		2,501	0.6
Health Care		47,401		—		—		47,401	11.4
Industrial		18,851		—		—		18,851	4.5
Lodging/Resorts		25,396		—		—		25,396	6.1
Mixed Industrial/Office		14,942		—		—		14,942	3.6
Office		48,149		—		—		48,149	11.6
Regional Malls		51,278		—		—		51,278	12.4
Residential		67,243		—		—		67,243	16.2
Self Storage		23,103		—		—		23,103	5.6
Shopping Centers		39,687		—		—		39,687	9.6
Specialty		25,355		—		—		25,355	6.1
Short-Term Investments		—		11,750		—		11,750	2.8
Other Securities		—		96,533		—		96,533	23.3

Total Investments		398,912		108,283		—		507,195	122.2

Other Assets and Liabilities, Net									(22.2	)

									100.0

Other Financial Instruments
Foreign Currency Exchange Contracts		—		—		—		—	—	*

Total Other Financial Instruments**		—		—		—		—

Less than .05% of net assets.

For a description of the levels see note 2 in the Notes to Financial Statements.

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


60		Real Estate Securities Fund

Russell Investment Funds

Real Estate Securities Fund

Fair Value of Derivative Instruments — June 30, 2010 (Unaudited)

Amounts in thousands


Derivatives not accounted for as hedging instruments	Foreign Currency Contracts

Location: Statement of Assets and Liabilities - Assets
Unrealized appreciation on foreign currency exchange contracts	$	1

Location: Statement of Assets and Liabilities - Liabilities
Unrealized depreciation on foreign currency exchange contracts	$	1


Derivatives not accounted for as hedging instruments	Foreign Currency Contracts
Location: Statement of Operations - Net realized gain (loss)
Foreign currency-related transactions	$	10

Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Foreign currency-related transactions	$	1

For further disclosure on derivatives see note 2 in Notes to Financial Statements.

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


Real Estate Securities Fund		61

Russell Investment Funds

Notes to Schedules of Investments — June 30, 2010 (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


62		Notes to Schedules of Investments

Russell Investment Funds

Statements of Assets and Liabilities — June 30, 2010 (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	$	328,615	$	155,942	$	313,372	$	484,297	$	437,150
Investments, at market***		336,721		158,107		298,005		490,314		507,195
Cash (restricted)		1,450		700		2,000		1,852		—
Foreign currency holdings*		—		—		961		111		38
Unrealized appreciation on foreign currency exchange contracts		—		—		780		567		1
Receivables:
Dividends and interest		496		183		728		2,857		1,341
Dividends from affiliated money market funds		1		1		3		3		1
Investments sold		3,222		1,319		888		15,915		22,038
Fund shares sold		833		508		683		458		88
Foreign taxes recoverable		—		—		286		—		—
Daily variation margin on futures contracts		—		—		23		360		—
Other receivable		—		—		7		2		—
Investments matured		—		—		—		275		—
Prepaid expenses		54		23		48		56		49
Interest rate swap contracts, at market value****		—		—		—		1,328		—
Credit default swap contracts, at market value*****		—		—		—		813		—

Total assets		342,777		160,841		304,412		514,911		530,751


Liabilities
Payables:
Due to Custodian		—		—		—		903		—
Due to Broker		—		—		—		1,400		—
Investments purchased		2,623		2,037		1,355		40,290		14,579
Fund shares redeemed		3,222		80		114		4,077		3,819
Accrued fees to affiliates		233		112		218		190		313
Other accrued expenses		69		47		66		79		82
Daily variation margin on futures contracts		114		50		161		17		—
Other payable		—

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