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Russell Investment Funds

Filed: 29 Aug 10, 8:00pm
Table of Contents

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05371

Russell Investment Funds

(Exact name of registrant as specified in charter)

909 A Street, Tacoma Washington 98402

(Address of principal executive offices) (Zip code)

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

 

 

 


Table of Contents
Item 1.Reports to Stockholders


Table of Contents

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


Table of Contents

 

 

Russell Investment Funds

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


Table of Contents

 

Russell Investment Funds

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


Table of Contents

 

Russell Investment Funds

Copyright © Russell Investments 2010. All rights reserved.

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

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

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

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


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Shareholder Expense Example — June 30, 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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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
 
  Level 1     Level 2    Level 3    Total   
                

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


Table of Contents

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


Table of Contents

Russell Investment Funds

Aggressive 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

  $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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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   
                

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


Table of Contents

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


Table of Contents

Russell Investment Funds

Non-U.S. 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

  $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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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   
                

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


Table of Contents

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


Table of Contents

Russell Investment Funds

Core Bond 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

  $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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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


Table of Contents

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  (6

UBS

  AUD 1,600    6.000%  Six Month BBSW  09/15/12  27  

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  1  

UBS

  BRL 200  12.250%  One Month LIBOR  01/02/14  1  
             

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


Table of Contents

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


Table of Contents

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   
            

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


Table of Contents

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


Table of Contents

Russell Investment Funds

Real Estate Securities 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

  $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


Table of Contents

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


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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


Table of Contents

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


Table of Contents

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    
                    

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.

 

** 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.

 

60 Real Estate Securities Fund


Table of Contents

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


Table of Contents

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


Table of Contents

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