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Russell Investment Funds

Filed: 30 Aug 12, 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)

 

 

1301 2nd Avenue 18th Floor,

Seattle Washington 98101

(Address of principal executive offices) (Zip code)

 

 

Mary Beth Rhoden, Secretary and Chief Legal Officer

Russell Investment Funds

18th Floor

Seattle, Washington 98101

206-505-4846

(Name and address of agent for service)

 

 

 

Registrant’s telephone number, including area code: 206-505-7877

Date of fiscal year end: December 31

Date of reporting period: January 1, 2012 – June 30, 2012

 

 

 


Table of Contents

Item 1. Reports to Stockholders


Table of Contents

LOGO

 

2012 SEMI-ANNUAL REPORT

 

 

Russell

Investment Funds

 

 

JUNE 30, 2012

FUND

Multi-Style Equity Fund

Aggressive Equity Fund

Non-U.S. Fund

Core Bond Fund

Global Real Estate Securities Fund

 

LOGO


Table of Contents

Russell Investment Funds

Russell Investment Funds is a series investment company with ten 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, 2012 (Unaudited)

Table of Contents

 

   Page 
Multi-Style Equity Fund   3  
Aggressive Equity Fund   16  
Non-U.S. Fund   32  
Core Bond Fund   46  
Global Real Estate Securities Fund   78  
Notes to Schedules of Investments   94  
Notes to Financial Highlights   95  
Notes to Financial Statements   96  
Basis for Approval of Investment Advisory Contracts   115  
Shareholder Requests for Additional Information   120  
Disclosure of Information about Fund Trustees and Officers   121  
Adviser, Money Managers and Service Providers   125  


Table of Contents

Russell Investment Funds

Copyright © Russell Investments 2012. 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 distributed through Russell Financial Services, Inc., member FINRA and part of Russell Investments.

Russell Investments is the owner of the trademarks, service marks, and copyrights related to its respective indexes.

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. Current to the most recent month-end performance data may be obtained by visiting www.russell.com/us/fundperformance.


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Shareholder Expense Example — June 30, 2012 (Unaudited)

 

 

 

Fund Expenses

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

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory 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, 2012 to June 30, 2012.

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, 2012

  $1,000.00    $1,000 .00  

Ending Account Value

    

June 30, 2012

  $1,077.20    $1,020.64  

Expenses Paid During Period*

  $4.39    $4.27  

 

*Expenses are equal to the Fund’s annualized expense ratio of 0.85% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher.
 

 

Multi-Style Equity Fund 3


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      
Common Stocks - 95.7%  
Consumer Discretionary - 13.4%      

Amazon.com, Inc. (Æ)

   13,360      3,051 

Automated Security Holdings
PLC - ADR (Æ)(Ñ)

   33,100      443 

Avon Products, Inc.

   34,700      562 

Bed Bath & Beyond, Inc. (Æ)

   6,688      413 

CBS Corp. Class B

   26,500      869 

Chipotle Mexican Grill, Inc. Class A (Æ)

   600      228 

Coach, Inc.

   5,150      301 

Comcast Corp. Class A

   27,300      873 

Costco Wholesale Corp.

   9,900      941 

Cracker Barrel Old Country Store, Inc.

   1,900      119 

eBay, Inc. (Æ)

   73,970      3,108 

Estee Lauder Cos., Inc. (The) Class A

   7,878      426 

Ford Motor Co. (Ñ)

   69,421      666 

GameStop Corp. Class A (Ñ)

   19,400      356 

General Motors Co. (Æ)

   70,300      1,387 

Genuine Parts Co.

   4,300      259 

Guess?, Inc. (Ñ)

   25,900      787 

Hanesbrands, Inc. (Æ)

   19,100      530 

Hertz Global Holdings, Inc. (Æ)

   52,000      666 

Home Depot, Inc.

   31,365      1,662 

Johnson Controls, Inc.

   107,500      2,978 

Kohl’s Corp.

   12,600      573 

Las Vegas Sands Corp.

   39,155      1,704 

Limited Brands, Inc.

   24,410      1,038 

Lowe’s Cos., Inc.

   23,400      665 

Lululemon Athletica, Inc. (Æ)(Ñ)

   5,000      298 

Macy’s, Inc.

   22,100      759 

McDonald’s Corp.

   6,800      602 

McGraw-Hill Cos., Inc. (The)

   12,100      545 

MGM Resorts International (Æ)

   33,700      376 

Michael Kors Holdings, Ltd. (Æ)

   16,525      691 

News Corp. Class A

   39,000      869 

Nike, Inc. Class B

   7,300      641 

priceline.com, Inc. (Æ)

   2,086      1,386 

PVH Corp.

   4,100      319 

Scholastic Corp.

   4,900      138 

Snap-on, Inc.

   8,600      535 

Starbucks Corp.

   56,740      3,026 

Starwood Hotels & Resorts Worldwide, Inc. (ö)

   25,300      1,342 

Target Corp.

   11,800      687 

Tesla Motors, Inc. (Æ)(Ñ)

   8,250      258 

Texas Roadhouse, Inc. Class A

   8,200      151 

Time Warner, Inc.

   139,050      5,353 

Tractor Supply Co.

   2,600      216 

Ulta Salon Cosmetics & Fragrance, Inc.

   3,200      299 

Under Armour, Inc. Class A (Æ)(Ñ)

   3,900      368 

Viacom, Inc. Class B

   56,250      2,644 

Visteon Corp. (Æ)

   5,700      214 

Walt Disney Co. (The)

   13,600      660 

Warnaco Group, Inc. (The) (Æ)

   11,300      481 

Whirlpool Corp.

   10,500      642 

WMS Industries, Inc. (Æ)

   10,100      201 

Yum! Brands, Inc.

   50,900      3,279 
      

 

 

 
       51,585 
      

 

 

 
   Principal
Amount ($)
or Shares
     Market
Value
$
 
Consumer Staples - 6.4%      

Archer-Daniels-Midland Co.

   70,300      2,075 

Bunge, Ltd.

   9,600      602 

Cia de Bebidas das Americas - ADR

   25,510      978 

Clorox Co. (The)

   6,500      471 

Coca-Cola Co. (The)

   66,307      5,186 

Colgate-Palmolive Co.

   20,100      2,092 

Dean Foods Co. (Æ)

   53,700      915 

Herbalife, Ltd.

   3,333      161 

Kraft Foods, Inc. Class A

   51,600      1,992 

Lorillard, Inc.

   6,900      910 

Molson Coors Brewing Co. Class B

   16,800      699 

PepsiCo, Inc.

   12,650      894 

Philip Morris International, Inc.

   5,500      480 

Procter & Gamble Co. (The)

   55,250      3,385 

Safeway, Inc. (Ñ)

   36,200      657 

Tyson Foods, Inc. Class A

   32,200      606 

Walgreen Co.

   37,600      1,112 

Whole Foods Market, Inc.

   12,490      1,190 
      

 

 

 
       24,405 
      

 

 

 
Energy - 9.5%      

Anadarko Petroleum Corp.

   23,950      1,585 

Apache Corp.

   17,840      1,568 

Arch Coal, Inc. (Ñ)

   58,800      405 

Cabot Oil & Gas Corp.

   12,166      479 

Chevron Corp.

   35,460      3,740 

Cimarex Energy Co.

   6,900      380 

Exxon Mobil Corp.

   90,350      7,730 

FMC Technologies, Inc. (Æ)

   5,600      220 

Forest Oil Corp. (Æ)

   39,100      287 

Halliburton Co.

   23,500      667 

Marathon Oil Corp.

   44,100      1,128 

Marathon Petroleum Corp.

   32,940      1,480 

Murphy Oil Corp.

   38,000      1,911 

National Oilwell Varco, Inc.

   37,615      2,425 

Noble Corp. (Æ)

   7,000      228 

Noble Energy, Inc.

   14,400      1,221 

Occidental Petroleum Corp.

   27,500      2,359 

Patterson-UTI Energy, Inc.

   31,100      453 

Phillips 66 (Æ)

   40,475      1,345 

Pioneer Natural Resources Co.

   2,400      212 

Schlumberger, Ltd.

   33,480      2,173 

SM Energy Co.

   9,500      467 

Southwestern Energy Co. (Æ)

   40,200      1,284 

Statoil ASA - ADR

   34,600      826 

Total SA - ADR

   10,200      458 

Valero Energy Corp.

   24,100      582 

Whiting Petroleum Corp. (Æ)

   23,200      954 
      

 

 

 
       36,567 
      

 

 

 
Financial Services - 15.5%      

Alert Care Corp. - ADR (Æ)(Ñ)

   55,800      807 

Allied World Assurance Co. Holdings AG

   6,100      485 

Allstate Corp. (The)

   2,300      81 

American Express Co.

   34,018      1,981 
 

 

 4   Multi-Style Equity Fund


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

American Tower Corp. Class A (ö)

   6,000      419 

Aspen Insurance Holdings, Ltd.

   8,000      231 

Assurant, Inc.

   10,100      352 

Bank of New York Mellon Corp. (The)

   76,500      1,679 

BB&T Corp.

   92,250      2,846 

Berkshire Hathaway, Inc. Class B (Æ)

   1,300      108 

BlackRock, Inc. Class A

   2,200      374 

Capital One Financial Corp.

   66,344      3,626 

Chubb Corp. (The)

   11,100      808 

Citigroup, Inc.

   108,250      2,967 

City National Corp.

   11,400      554 

Cullen/Frost Bankers, Inc.

   17,100      983 

Discover Financial Services

   60,687      2,099 

Endurance Specialty Holdings, Ltd.

   6,500      249 

Everest Re Group, Ltd.

   1,800      186 

Extra Space Storage, Inc. (ö)

   17,500      536 

Fifth Third Bancorp

   49,300      661 

Goldman Sachs Group, Inc. (The)

   7,480      717 

Hancock Holding Co.

   5,300      161 

Hanover Insurance Group, Inc. (The)

   6,200      243 

Hartford Financial Services Group, Inc.

   36,300      640 

Hospitality Properties Trust (ö)

   6,300      156 

Invesco, Ltd.

   33,600      759 

Jefferies Group, Inc. (Ñ)

   18,294      238 

JPMorgan Chase & Co.

   130,800      4,674 

KeyCorp

   60,000      464 

Liberty Property Trust (Ñ)(ö)

   19,300      711 

Lincoln National Corp.

   30,100      658 

Mastercard, Inc. Class A

   3,468      1,492 

Mercury General Corp.

   13,100      546 

MetLife, Inc.

   103,600      3,196 

Morgan Stanley

   47,900      699 

Northern Trust Corp.

   18,500      851 

PartnerRe, Ltd. - ADR

   11,360      860 

People’s United Financial, Inc.

   59,300      688 

PNC Financial Services Group, Inc.

   13,100      800 

ProAssurance Corp.

   4,200      374 

Provident Financial Services, Inc.

   8,000      123 

Prudential Financial, Inc.

   51,200      2,479 

Reinsurance Group of America, Inc. Class A

   8,400      447 

RLI Corp.

   1,200      82 

Selective Insurance Group, Inc.

   3,800      66 

Simon Property Group, Inc. (ö)

   5,320      828 

Sovran Self Storage, Inc. (ö)

   3,800      190 

StanCorp Financial Group, Inc.

   6,800      253 

State Street Corp.

   45,300      2,023 

SunTrust Banks, Inc.

   30,000      727 

Symetra Financial Corp.

   7,600      96 

Total System Services, Inc.

   19,490      466 

Travelers Cos., Inc. (The)

   9,600      613 

Unum Group

   21,100      404 

Validus Holdings, Ltd.

   20,700      663 

Valley National Bancorp (Ñ)

   33,337      353 

Visa, Inc. Class A

   26,257      3,246 

Webster Financial Corp.

   2,300      50 

Wells Fargo & Co.

   128,900      4,310 
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Western Union Co. (The)

   61,250      1,031 

White Mountains Insurance Group, Ltd.

   174      91 
      

 

 

 
       59,500 
      

 

 

 
Health Care - 13.2%      

Abbott Laboratories

   7,300      471 

Aetna, Inc.

   19,200      744 

Alexion Pharmaceuticals, Inc. (Æ)

   6,011      597 

Allergan, Inc.

   10,466      969 

AmerisourceBergen Corp. Class A

   9,600      378 

Baxter International, Inc.

   19,000      1,010 

Biogen Idec, Inc. (Æ)

   7,900      1,140 

Boston Scientific Corp. (Æ)

   126,700      718 

Bristol-Myers Squibb Co.

   45,600      1,639 

Cardinal Health, Inc.

   6,500      273 

Celgene Corp. (Æ)

   7,300      468 

Cerner Corp. (Æ)

   30,540      2,525 

Cigna Corp.

   1,900      84 

CONMED Corp.

   5,100      141 

Covidien PLC

   36,550      1,955 

Eli Lilly & Co.

   25,000      1,073 

Express Scripts Holding Co. (Æ)

   25,190      1,406 

Gilead Sciences, Inc. (Æ)

   16,670      855 

Hill-Rom Holdings, Inc.

   9,900      305 

Humana, Inc.

   9,940      770 

Intuitive Surgical, Inc. (Æ)

   3,430      1,899 

Johnson & Johnson

   101,750      6,874 

Magellan Health Services, Inc. (Æ)

   4,300      195 

McKesson Corp.

   21,950      2,058 

Medtronic, Inc.

   15,816      613 

Merck & Co., Inc.

   96,891      4,045 

Mylan, Inc. (AE)

   64,480      1,378 

Novo Nordisk A/S - ADR

   10,400      1,512 

Omnicare, Inc.

   16,800      525 

Perrigo Co.

   13,880      1,637 

Pfizer, Inc.

   341,380      7,851 

Sanofi - ADR

   23,150      875 

Teva Pharmaceutical Industries, Ltd. - ADR

   11,250      444 

UnitedHealth Group, Inc.

   33,500      1,960 

Valeant Pharmaceuticals International,
Inc. (Æ)

   17,444      781 

WellPoint, Inc.

   11,900      759 
      

 

 

 
       50,927 
      

 

 

 
Materials and Processing - 5.1%      

Air Products & Chemicals, Inc.

   9,400      759 

Barrick Gold Corp.

   56,250      2,113 

Bemis Co., Inc.

   17,200      539 

Celanese Corp. Class A

   9,650      334 

Ecolab, Inc.

   31,100      2,131 

Freeport-McMoRan Copper & Gold, Inc.

   25,700      876 

Huntsman Corp.

   60,900      788 

LyondellBasell Industries NV Class A

   10,800      435 

Martin Marietta Materials, Inc. (Ñ)

   6,800      536 

Masco Corp. (Ñ)

   15,700      218 

MeadWestvaco Corp.

   2,500      72 

Monsanto Co.

   78,410      6,491 
 

 

Multi-Style Equity Fund 5


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Mueller Industries, Inc.

   1,300      55 

Nucor Corp.

   19,100      724 

Praxair, Inc.

   8,500      924 

Precision Castparts Corp.

   2,800      461 

Sealed Air Corp.

   48,400      747 

Sherwin-Williams Co. (The)

   2,200      291 

Steel Dynamics, Inc.

   53,900      633 

Stillwater Mining Co. (Æ)

   13,300      114 

Titanium Metals Corp.

   44,000      498 
      

 

 

 
       19,739 
      

 

 

 
Producer Durables - 12.8%      

ABM Industries, Inc.

   2,000      39 

Accenture PLC Class A

   14,090      847 

AGCO Corp. (Æ)

   15,900      727 

Air Lease Corp. Class A (Æ)(Ñ)

   15,600      302 

Alaska Air Group, Inc. (Æ)

   19,400      696 

Alliant Techsystems, Inc.

   500      25 

Allison Transmission Holdings, Inc. (Ñ)

   6,500      114 

Automatic Data Processing, Inc.

   35,300      1,965 

Barnes Group, Inc.

   6,900      168 

Boeing Co. (The)

   31,300      2,326 

Booz Allen Hamilton Holding Corp. Class A

   3,200      49 

Brink’s Co. (The)

   10,700      248 

Bristow Group, Inc.

   3,100      126 

Caterpillar, Inc.

   11,044      938 

Con-way, Inc.

   21,000      758 

Cummins, Inc.

   19,260      1,866 

Danaher Corp.

   18,900      984 

Danone - ADR (Æ)

   86,960      1,077 

Deere & Co.

   11,182      904 

Delta Air Lines, Inc. (Æ)

   51,400      563 

Dover Corp.

   17,500      938 

Eaton Corp.

   10,050      398 

Electronics for Imaging, Inc. (Æ)

   3,230      52 

EMCOR Group, Inc.

   6,100      170 

Emerson Electric Co.

   21,300      992 

FedEx Corp.

   25,548      2,340 

GATX Corp.

   7,000      270 

General Dynamics Corp.

   17,400      1,148 

General Electric Co.

   242,450      5,053 

Granite Construction, Inc.

   5,000      131 

Harsco Corp.

   49,400      1,007 

Honeywell International, Inc.

   66,200      3,696 

Itron, Inc. (Æ)

   16,200      668 

Joy Global, Inc.

   18,610      1,056 

KBR, Inc.

   19,500      482 

L-3 Communications Holdings, Inc.

   10,100      748 

Lockheed Martin Corp.

   14,800      1,289 

Manpower, Inc.

   5,500      202 

Moog, Inc. Class A (Æ)

   3,900      161 

Norfolk Southern Corp.

   10,500      754 

PACCAR, Inc.

   6,400      251 

Parker Hannifin Corp.

   10,900      838 

Pentair, Inc. (Ñ)

   28,039      1,074 

Pitney Bowes, Inc. (Ñ)

   30,200      452 

Raytheon Co.

   16,000      905 
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Republic Services, Inc. Class A

   28,100      744 

Rockwell Automation, Inc.

   12,500      826 

Roper Industries, Inc.

   2,000      197 

RR Donnelley & Sons Co. (Ñ)

   34,900      411 

Ryder System, Inc.

   25,800      929 

Shaw Group, Inc. (The) (Æ)

   11,800      322 

Stanley Black & Decker, Inc.

   17,750      1,143 

Terex Corp. (Æ)

   13,485      240 

Tetra Tech, Inc. (Æ)

   8,608      224 

Textron, Inc.

   27,800      691 

Tidewater, Inc.

   15,800      732 

UniFirst Corp.

   1,500      96 

Union Pacific Corp.

   5,400      644 

United Continental Holdings, Inc. (Æ)

   14,800      360 

United Parcel Service, Inc. Class B

   1,375      108 

United Technologies Corp.

   5,950      449 

URS Corp.

   18,000      628 

UTi Worldwide, Inc. (Æ)

   17,400      254 

Xylem, Inc.

   23,700      597 
      

 

 

 
       49,392 
      

 

 

 
Technology - 16.0%      

Altera Corp.

   13,200      447 

Apple, Inc. (Æ)

   18,134      10,590 

Applied Materials, Inc.

   195,450      2,239 

Avago Technologies, Ltd.

   38,800      1,392 

Benchmark Electronics, Inc. (Æ)

   11,200      156 

Broadcom Corp. Class A (Æ)

   10,653      360 

Brocade Communications Systems, Inc. (Æ)

   36,400      179 

Cisco Systems, Inc.

   212,750      3,653 

Citrix Systems, Inc. (Æ)

   13,400      1,125 

Dolby Laboratories, Inc. Class A (Æ)

   5,300      219 

Electronic Arts, Inc. (Æ)

   36,900      456 

EMC Corp. (Æ)

   33,308      854 

F5 Networks, Inc. (AE)

   2,450      244 

Facebook, Inc. Class A (AE)(Ñ)

   36,480      1,135 

Fusion-io, Inc. (Æ)(Ñ)

   6,682      140 

Google, Inc. Class A (Æ)

   6,257      3,629 

Harris Corp. (Ñ)

   10,000      419 

IAC/InterActiveCorp

   15,300      698 

Integrated Device Technology, Inc. (Æ)

   33,400      188 

Intel Corp.

   49,800      1,327 

International Business Machines Corp.

   3,400      665 

Intersil Corp. Class A

   24,800      264 

Koninklijke Philips Electronics NV

   45,400      893 

Linear Technology Corp.

   21,600      677 

LinkedIn Corp. Class A (Æ)(Ñ)

   1,900      202 

LSI Corp. (Æ)

   109,600      698 

Marvell Technology Group, Ltd.

   36,900      416 

Maxim Integrated Products, Inc.

   24,200      620 

Mentor Graphics Corp. (Æ)

   10,800      162 

Microsoft Corp.

   184,100      5,633 

MKS Instruments, Inc.

   3,500      101 

Molex, Inc. (Ñ)

   17,000      407 

NCR Corp. (Æ)

   15,600      355 

NetApp, Inc. (Æ)

   9,200      293 

Plantronics, Inc.

   3,900      130 
 

 

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Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

PMC - Sierra, Inc. (Æ)

   33,500      206 

QUALCOMM, Inc.

   75,735      4,216 

Rackspace Hosting, Inc. (Æ)

   10,700      470 

Red Hat, Inc. (Æ)

   32,720      1,848 

Salesforce.com, Inc. (Æ)

   8,628      1,193 

SAP AG - ADR (Ñ)

   24,740      1,469 

Synopsys, Inc. (Æ)

   16,900      497 

Tellabs, Inc.

   169,900      566 

Teradata Corp. (Æ)

   8,000      576 

Texas Instruments, Inc.

   129,940      3,728 

VeriFone Systems, Inc. (Æ)

   18,218      603 

VMware, Inc. Class A (Æ)

   9,000      820 

Vodafone Group PLC - ADR

   125,100      3,525 

Western Digital Corp. (Æ)

   20,500      625 

Xilinx, Inc.

   8,300      279 
      

 

 

 
       61,587 
      

 

 

 
Utilities - 3.7%      

Ameren Corp.

   20,900      701 

American Electric Power Co., Inc.

   35,100      1,401 

American Water Works Co., Inc.

   7,600      261 

AT&T, Inc.

   126,500      4,510 

DTE Energy Co.

   9,600      570 

Encana Corp.

   80,350       1,674 

Entergy Corp.

   6,600       448 

Exelon Corp.

   10,500       395 

FirstEnergy Corp.

   14,100       694 

Level 3 Communications, Inc. (Æ)

   7,550       167 

National Fuel Gas Co.

   10,600       498 

NextEra Energy, Inc.

   6,600       454 

NorthWestern Corp.

   1,700       62 

NV Energy, Inc.

   22,600       397 

PPL Corp.

   27,800       773 

Telephone & Data Systems, Inc.

   25,400       541 

Verizon Communications, Inc.

   15,550       691 
      

 

 

 
       14,237 
      

 

 

 
Total Common Stocks
(cost $329,591)
       367,939 
      

 

 

 
Short-Term Investments - 4.2%      

Russell U.S. Cash Management Fund

   15,955,207 (¥     15,955 
      

 

 

 
Total Short-Term Investments
(cost $15,955)
       15,955 
      

 

 

 
   Principal
Amount ($)
or Shares
     Market
Value
$
 
Other Securities - 2.8%      

Russell Investment Funds Liquidating
Trust (×)

   84,460 (¥     86 

Russell U.S. Cash Collateral Fund (×)

   10,765,028 (¥     10,765 
      

 

 

 
Total Other Securities
(cost $10,849)
       10,851 
      

 

 

 
Total Investments - 102.6%
(identified cost $356,395)
       394,745 
Other Assets and Liabilities,
Net - (2.6%)
       (9,832
      

 

 

 
Net Assets - 100.0%       384,913 
      

 

 

 
 

 

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

 

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Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except contract amounts)

 

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

Long Positions

         

Russell 1000 Mini Index Futures (CME)

   24   USD     1,794   09/12   55 

S&P 500 E-Mini Index Futures (CME)

   170   USD     11,529   09/12   335 

S&P 500 Index Futures (CME)

   12   USD     4,069   09/12   133 
         

 

 

 

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

          523 
         

 

 

 

 

 

Presentation of Portfolio Holdings — June 30, 2012 (Unaudited)

Amounts in thousands

 

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

Common Stocks

                    

Consumer Discretionary

    $51,585     $      $      $51,585      13.4  

Consumer Staples

     24,405                    24,405      6.4  

Energy

     36,567                    36,567      9.5  

Financial Services

     59,500                    59,500      15.5  

Health Care

     50,927                    50,927      13.2  

Materials and Processing

     19,739                    19,739      5.1  

Producer Durables

     49,392                    49,392      12.8  

Technology

     61,587                    61,587      16.0  

Utilities

     14,237                    14,237      3.7  

Short-Term Investments

            15,955             15,955      4.2  

Other Securities

            10,851             10,851      2.8  
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Investments

     367,939      26,806             394,745      102.6  
    

 

 

     

 

 

     

 

 

     

 

 

     

Other Assets and Liabilities, Net

                     (2.6
                    

 

 

 
                     100.0  
                    

 

 

 

Other Financial Instruments

                    

Futures Contracts

     523                    523      0.1  
    

 

 

     

 

 

     

 

 

     

 

 

     

Total Other Financial Instruments*

    $523     $      $      $523     
    

 

 

     

 

 

     

 

 

     

 

 

     

 

*Other financial instruments reflected, such as futures, forwards, interest rate swaps and credit default swaps 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.

There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended June 30, 2012.

 

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

 

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Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Fair Value of Derivative Instruments — June 30, 2012 (Unaudited)

Amounts in thousands

 

Derivatives not accounted for as hedging instruments  Equity
Contracts
 
  

Location: Statement of Assets and Liabilities - Assets

  

Daily variation margin on futures contracts*

  $523  
  

 

 

 
Derivatives not accounted for as hedging instruments  Equity
Contracts
 

Location: Statement of Operations - Net realized gain (loss)

  

Futures contracts

  $944  
  

 

 

 

Location: Statement of Operations - Net change in unrealized appreciation (depreciation)

  

Futures contracts

  $500  
  

 

 

 

 

*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 and 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

Multi-Style Equity Fund

Statement of Assets and Liabilities — June 30, 2012 (Unaudited)

 

Amounts in thousands    
 

Assets

 

Investments, at identified cost

 $356,395 

Investments, at market*, **

  394,745 

Cash

  108 

Cash (restricted)

  1,350 

Receivables:

 

Dividends and interest

  542 

Dividends from affiliated Russell funds

  2 

Investments sold

  2,935 

Fund shares sold

  8 

Daily variation margin on futures contracts

  438 

Prepaid expenses

  4 
 

 

 

 

Total assets

  400,132 
 

 

 

 

Liabilities

 

Payables:

 

Investments purchased

  3,714 

Fund shares redeemed

  376 

Accrued fees to affiliates

  242 

Other accrued expenses

  38 

Payable upon return of securities loaned

  10,849 
 

 

 

 

Total liabilities

  15,219 
 

 

 

 
 

Net Assets

 $384,913 
 

 

 

 

 

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

 

 10   Multi-Style Equity Fund


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Russell Investment Funds

Multi-Style Equity Fund

Statement of Assets and Liabilities, continued — June 30, 2012 (Unaudited)

 

Amounts in thousands    
 

Net Assets Consist of:

 

Undistributed (overdistributed) net investment income

 $1,239 

Accumulated net realized gain (loss)

  (42,948

Unrealized appreciation (depreciation) on:

 

Investments

  38,350 

Futures contracts

  523 

Shares of beneficial interest

  271 

Additional paid-in capital

  387,478 
 

 

 

 

Net Assets

 $384,913 
 

 

 

 

Net Asset Value, offering and redemption price per share:

 

Net asset value per share: (a)

 $14.18  

Net assets

 $384,913,186 

Shares outstanding ($.01 par value)

  27,135,259 

Amounts in thousands

 
 

*       Securities on loan included in investments

 $11,532 

**     Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Funds Liquidating Trust and Russell U.S. Cash Collateral Fund

 $26,806 

 

(a)Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

 

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

 

Multi-Style Equity Fund 11


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Statement of Operations — For the Period Ended June 30, 2012 (Unaudited)

 

Amounts in thousands    
 

Investment Income

 

Dividends

 $3,797  

Dividends from affiliated Russell funds

  13  

Securities lending income

  85  
 

 

 

 

Total investment income

  3,895  
 

 

 

 

Expenses

 

Advisory fees

  1,433  

Administrative fees

  98  

Custodian fees

  80  

Transfer agent fees

  9  

Professional fees

  31  

Trustees’ fees

  5  

Printing fees

  10  

Miscellaneous

  9  
 

 

 

 

Total expenses

  1,675  
 

 

 

 

Net investment income (loss)

  2,220  
 

 

 

 

Net Realized and Unrealized Gain (Loss)

 

Net realized gain (loss) on:

 

Investments

  14,372  

Futures contracts

  944  
 

 

 

 

Net realized gain (loss)

  15,316  
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments

  10,792  

Futures contracts

  500  
 

 

 

 

Net change in unrealized appreciation (depreciation)

  11,292  
 

 

 

 

Net realized and unrealized gain (loss)

  26,608  
 

 

 

 

Net Increase (Decrease) in Net Assets from Operations

 $28,828  
 

 

 

 

 

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

 

 12   Multi-Style Equity Fund


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Statements of Changes in Net Assets

 

Amounts in thousands Period Ended
June 30, 2012
(Unaudited)
  Fiscal Year
Ended
December 31, 2011
 
  

Increase (Decrease) in Net Assets

  

Operations

  

Net investment income (loss)

 $2,220  $4,071 

Net realized gain (loss)

  15,316   35,308 

Net change in unrealized appreciation (depreciation)

  11,292   (45,310
 

 

 

  

 

 

 

Net increase (decrease) in net assets from operations

  28,828   (5,931
 

 

 

  

 

 

 

Distributions

  

From net investment income

  (2,079  (3,847
 

 

 

  

 

 

 

Net decrease in net assets from distributions

  (2,079  (3,847
 

 

 

  

 

 

 

Share Transactions

  

Net increase (decrease) in net assets from share transactions

  (15,228  (17,504

Fund Reimbursements

      203 
 

 

 

  

 

 

 

Total Net Increase (Decrease) in Net Assets

  11,521   (27,079

Net Assets

  

Beginning of period

  373,392   400,471 
 

 

 

  

 

 

 

End of period

 $384,913  $373,392 
 

 

 

  

 

 

 

Undistributed (overdistributed) net investment income included in net assets

 $1,239  $1,098 

 

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

 

Multi-Style Equity Fund 13


Table of Contents

Russell Investment Funds

Multi-Style Equity Fund

Financial Highlights

For a Share Outstanding Throughout the Period

 

    
$
Net Asset Value,
Beginning of
Period
   $
Net Investment
Income (Loss)
(a)(b)
   $
Net Realized
and Unrealized
Gain (Loss)
   $
Total from
Investment
Operations
   $
Distributions
from Net
Investment Income
   $
Distributions
from Net
Realized Gain
 

June 30, 2012(1)

   13.24     .08     .94     1.02     (.08     

December 31, 2011

   13.58     .14     (.35   (.21   (.13     

December 31, 2010

   11.77     .11     1.81     1.92     (.11     

December 31, 2009

   9.00     .10     2.80     2.90     (.13     

December 31, 2008

   15.65     .19     (6.52   (6.33   (.19   (.13

December 31, 2007

   14.93     .16     1.37     1.53     (.16   (.65

 

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

 

 14   Multi-Style Equity Fund


Table of Contents
$
Total
Distributions
  $
Net Asset Value,
End of
Period
  %
Total
Return
(d)(f)
  $
Net Assets,
End of Period
(000)
  %
Ratio of Expenses
to Average
Net Assets,
Gross
(e)
  %
Ratio of Expenses
to Average
Net Assets,
Net
(b)(e)
  %
Ratio of Net
Investment Income
to Average Net
Assets
(b)(e)
  % Portfolio
Turnover Rate
(d)
 
 (.08  14.18    7.72    384,913   .85    .85    1.13    56 
 (.13  13.24    (1.55  373,392   .85    .85    1.03    133 
 (.11  13.58    16.46    400,471   .89    .89    .93    105 
 (.13  11.77    32.72    376,751   .86    .85    1.06    136 
 (.32  9 .00   (41.15  298,211   .89    .87    1.50    135 
 (.81  15.65    10.36    479,922   .87    .87    1.04    136 

 

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

 

Multi-Style Equity Fund 15


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Shareholder Expense Example — June 30, 2012 (Unaudited)

 

 

 

Fund Expenses

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

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory 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, 2012 to June 30, 2012.

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, 2012

  $1,000.00    $1,000.00  

Ending Account Value

    

June 30, 2012

  $1,089.80    $1,019.84  

Expenses Paid During Period*

  $5.25    $5.07  

 

*Expenses are equal to the Fund’s annualized expense ratio of 1.01% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher.
 

 

 16   Aggressive Equity Fund


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      
Common Stocks - 97.7%      
Consumer Discretionary - 13.9%      

1-800-Flowers.com, Inc. Class A (Æ)

   12,200       43  

Aeropostale, Inc. (Æ)

   5,100       91  

AFC Enterprises, Inc. (Æ)

   13,500       312  

Amerco, Inc.

   4,242       382  

American Eagle Outfitters, Inc.

   12,595       248  

American Greetings Corp. Class A (Ñ)

   13,300       194  

America’s Car-Mart, Inc. (Æ)

   16,890       657  

Ameristar Casinos, Inc.

   12,000       213  

Arctic Cat, Inc. (Æ)

   10,291       376  

BJ’s Restaurants, Inc. (Æ)

   6,900       262  

Buffalo Wild Wings, Inc. (Æ)

   4,610       399  

Build-A-Bear Workshop, Inc.
Class A (Æ)(Ñ)

   2,800       13  

Callaway Golf Co. (Ñ)

   60,681       359  

Capella Education Co. (Æ)

   7,400       257  

Career Education Corp. (Æ)

   18,000       120  

Carmike Cinemas, Inc. (Æ)

   5,900       86  

CEC Entertainment, Inc.

   19,800       719  

Churchill Downs, Inc.

   2,300       135  

Columbia Sportswear Co. (Ñ)

   9,560       513  

Conn’s, Inc. (Æ)(Ñ)

   1,300       19  

Cooper Tire & Rubber Co.

   36,390       638  

Courier Corp.

   2,900       38  

Cracker Barrel Old Country Store, Inc.

   8,400       528  

CSS Industries, Inc.

   1,900       39  

Destination Maternity Corp.

   11,900       257  

Dollar Thrifty Automotive Group, Inc. (Æ)

   1,200       97  

EW Scripps Co. Class A (Æ)

   15,700       151  

Express, Inc. (Æ)

   14,090       256  

Federal-Mogul Corp. (Æ)

   11,100       122  

Finish Line, Inc. (The) Class A

   16,930       354  

Francesca’s Holdings Corp. (Æ)

   13,510       365  

Fred’s, Inc. Class A

   12,270       188  

Fuel Systems Solutions, Inc. (Æ)(Ñ)

   15,563       260  

Genesco, Inc. (Æ)

   5,690       342  

Grand Canyon Education, Inc. (Æ)

   16,750       351  

Group 1 Automotive, Inc.

   13,860       632  

HealthStream, Inc. (Æ)

   36,750       955  

Helen of Troy, Ltd. (Æ)

   4,300       146  

Hibbett Sports, Inc. (Æ)

   19,210       1,108  

Hillenbrand, Inc.

   16,880       310  

Hot Topic, Inc.

   58,000       562  

Iconix Brand Group, Inc. (Æ)

   23,300       407  

Isle of Capri Casinos, Inc. (Æ)

   6,400       39  

Jack in the Box, Inc. (Æ)

   8,100       226  

Jones Group, Inc. (The)

   91,750       877  

Kenneth Cole Productions, Inc.
Class A (Æ)

   11,609       175  

LeapFrog Enterprises, Inc. Class A (Æ)

   22,000       226  

LIN TV Corp. Class A (Æ)

   7,400       22  

Lincoln Educational Services Corp.

   11,600       75  

Lithia Motors, Inc. Class A

   20,000       461  

Marchex, Inc. Class A (Ñ)

   15,000       54  

Martha Stewart Living Omnimedia Class A

   6,100       21  

McClatchy Co. (The) Class A (Æ)(Ñ)

   14,800       33  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Men’s Wearhouse, Inc. (The)

   22,243       626  

Meredith Corp. (Ñ)

   19,120       611  

Monarch Casino & Resort, Inc. (Æ)

   2,000       18  

Movado Group, Inc.

   17,100       428  

Multimedia Games Holding Co., Inc. (Æ)

   12,500       175  

New York & Co., Inc. (Æ)

   2,200       8  

Papa John’s International, Inc. (Æ)

   5,600       266  

Pier 1 Imports, Inc.

   48,830       801  

Proto Labs, Inc. (Æ)(Ñ)

   10,000       288  

Red Robin Gourmet Burgers, Inc. (Æ)

   17,290       528  

Regis Corp.

   17,880       321  

RG Barry Corp.

   1,000       14  

Ritchie Bros Auctioneers, Inc.

   14,850       316  

Ruby Tuesday, Inc. (Æ)

   33,882       231  

Scholastic Corp.

   15,400       434  

Shoe Carnival, Inc.

   9,105       196  

Shuffle Master, Inc. (Æ)

   13,700       189  

Sinclair Broadcast Group, Inc. Class A

   12,200       111  

Skechers U.S.A., Inc. Class A (Æ)

   16,439       335  

Smith & Wesson Holding Corp. (Æ)

   32,900       274  

Sotheby’s Class A

   14,360       479  

Stamps.com, Inc. (Æ)

   21,500       530  

Standard Motor Products, Inc.

   26,500       374  

Steven Madden, Ltd. (Æ)

   16,080       511  

Stewart Enterprises, Inc. Class A

   35,560       254  

Stoneridge, Inc. (Æ)

   10,000       68  

Superior Industries International, Inc.

   9,712       159  

Systemax, Inc. (Æ)

   1,700       20  

Texas Roadhouse, Inc. Class A

   2,100       39  

Thor Industries, Inc.

   6,700       184  

Viad Corp.

   4,643       93  

VOXX International Corp. Class A (Æ)

   7,800       73  

West Marine, Inc. (Æ)

   200       2  

Wolverine World Wide, Inc.

   9,040       351  

World Wrestling Entertainment, Inc.
Class A (Ñ)

   4,100       32  

Zipcar, Inc. (Æ)(Ñ)

   33,800       396  
      

 

 

 
       25,448  
      

 

 

 
Consumer Staples - 2.0%      

Andersons, Inc. (The)

   9,718       414  

Core-Mark Holding Co., Inc.

   4,700       226  

Fresh Del Monte Produce, Inc.

   25,365       595  

Harris Teeter Supermarkets, Inc.

   6,700       275  

Ingredion, Inc.

   5,100       253  

Nash Finch Co.

   3,900       84  

Rite Aid Corp. (Æ)

   82,100       115  

Seneca Foods Corp. Class A (Æ)

   1,000       27  

Spartan Stores, Inc.

   5,500       100  

SUPERVALU, Inc. (Ñ)

   41,100       213  

TreeHouse Foods, Inc. (Æ)(Ñ)

   14,358       893  

Universal Corp.

   8,170       379  
      

 

 

 
       3,574  
      

 

 

 
Energy - 4.4%      

Approach Resources, Inc. (Æ)(Ñ)

   19,030       486  

Cal Dive International, Inc. (Æ)

   66,987       194  
 

 

Aggressive Equity Fund 17


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (expect share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

CARBO Ceramics, Inc. (Ñ)

   9,600       736  

Contango Oil & Gas Co. (Æ)

   11,000       651  

Core Laboratories NV

   2,750       319  

Delek US Holdings, Inc.

   25,000       440  

DHT Holdings, Inc. (Æ)(Ñ)

   94       12  

EnerNOC, Inc. (Æ)

   7,200       52  

EXCO Resources, Inc. (Ñ)

   54,430       413  

Gulfport Energy Corp. (Æ)

   10,100       208  

Helix Energy Solutions Group, Inc. (Æ)

   23,000       377  

Hornbeck Offshore Services, Inc. (Æ)

   6,100       237  

Lufkin Industries, Inc.

   4,520       246  

Nabors Industries, Ltd. (Æ)

   15,064       217  

Natural Gas Services Group, Inc. (Æ)

   7,100       105  

Pacific Drilling SA (Æ)

   26,390       225  

Patterson-UTI Energy, Inc.

   10,981       160  

Penn Virginia Corp.

   31,900       234  

Pioneer Drilling Co. (Æ)

   1,600       13  

REX American Resources Corp. (Æ)

   4,400       86  

Rosetta Resources, Inc. (Æ)

   7,610       279  

Rowan Companies PLC (Æ)

   10,480       339  

Stone Energy Corp. (Æ)

   11,600       294  

STR Holdings, Inc. (Æ)(Ñ)

   11,700       53  

SunPower Corp. Class A (Æ)

   10,600       51  

Superior Energy Services, Inc. (Æ)

   22,375       452  

Tesco Corp. (Æ)

   9,700       116  

TETRA Technologies, Inc. (Æ)

   23,127       165  

Unit Corp. (Æ)

   4,259       157  

W&T Offshore, Inc.

   44,220       677  

Western Refining, Inc.

   6,900       154  
      

 

 

 
       8,148  
      

 

 

 
Financial Services - 24.2%      

1st Source Corp.

   5,300       120  

Advent Software, Inc. (Æ)

   24,900       675  

AG Mortgage Investment Trust, Inc. (ö)

   30,500       656  

American Campus Communities, Inc. (ö)

   5,700       256  

American Capital Mortgage Investment Corp. (ö)

   12,920       309  

American Safety Insurance Holdings,
Ltd. (Æ)

   1,600       30  

Ameriprise Financial, Inc.

   5,402       282  

Anworth Mortgage Asset Corp. (ö)

   69,610       491  

Apollo Residential Mortgage, Inc.

   53,300       1,027  

Ares Capital Corp.

   10,839       173  

Argo Group International Holdings, Ltd.

   8,700       255  

Arlington Asset Investment Corp.
Class A (Ñ)

   5,700       124  

Ashford Hospitality Trust, Inc. (ö)

   9,100       77  

Associated Banc-Corp.

   7,300       96  

Associated Estates Realty Corp. (ö)

   14,600       218  

Astoria Financial Corp.

   30,100       295  

Baldwin & Lyons, Inc. Class B

   1,100       26  

Bancfirst Corp. (Ñ)

   1,100       46  

Banco Latinoamericano de Comercio Exterior SA Class E

   46,300       993  

Bancorp, Inc. (Æ)

   20,933       198  

Bank of Marin Bancorp

   700       26  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Beneficial Mutual Bancorp, Inc. (Æ)

   6,000       52  

Berkshire Hills Bancorp, Inc.

   9,700       213  

BioMed Realty Trust, Inc. (ö)

   23,450       438  

Boston Private Financial Holdings, Inc.

   30,172       269  

Brookline Bancorp, Inc.

   45,040       399  

Calamos Asset Management, Inc. Class A

   6,200       71  

Capitol Federal Financial, Inc.

   49,751       591  

CapLease, Inc. (ö)

   7,800       32  

Capstead Mortgage Corp. (ö)

   36,800       512  

Center Bancorp, Inc.

   2,300       26  

Centerstate Banks, Inc.

   4,000       29  

Central Pacific Financial Corp. (Æ)

   4,700       66  

Chemical Financial Corp.

   5,900       127  

Chesapeake Lodging Trust (ö)

   4,390       76  

Citizens & Northern Corp.

   1,800       34  

Citizens Republic Bancorp, Inc. (Æ)

   13,100       224  

CNB Financial Corp.

   700       11  

CoBiz Financial, Inc.

   11,300       71  

Colonial Properties Trust (ö)

   10,762       238  

Comerica, Inc.

   10,926       336  

Community Bank System, Inc.

   3,562       97  

Community Trust Bancorp, Inc.

   1,000       33  

CoreLogic, Inc. (Æ)

   26,700       489  

DFC Global Corp. (Æ)

   11,638       214  

DiamondRock Hospitality Co. (ö)

   32,501       332  

Dime Community Bancshares, Inc.

   10,570       140  

Eagle Bancorp, Inc. (Æ)

   3,900       61  

Entertainment Properties Trust (ö)

   5,100       210  

Evercore Partners, Inc. Class A

   23,230       543  

Extra Space Storage, Inc. (ö)

   13,300       407  

FactSet Research Systems, Inc.

   3,375       314  

Fair Isaac Corp.

   7,300       309  

FBL Financial Group, Inc. Class A

   3,300       92  

FBR & Co. (Æ)

   7,200       20  

First American Financial Corp.

   58,440       991  

First Community Bancshares, Inc.

   1,000       14  

First Connecticut Bancorp, Inc. (Ñ)

   1,600       22  

First Defiance Financial Corp.

   300       5  

First Financial Bancorp

   880       14  

First Industrial Realty Trust, Inc. (Æ)(ö)

   53,000       669  

First Interstate Bancsystem, Inc. Class A

   3,400       48  

First Merchants Corp.

   11,900       148  

FirstMerit Corp.

   12,000       198  

Flagstone Reinsurance Holdings SA (Å)

   74,050       593  

Forestar Group, Inc. (Æ)

   19,080       244  

Franklin Street Properties Corp. (ö)

   53,502       566  

German American Bancorp, Inc.

   1,100       23  

GFI Group, Inc.

   28,100       100  

Global Cash Access Holdings, Inc. (Æ)

   55,400       399  

Greenhill & Co., Inc. (Ñ)

   15,925       568  

Hallmark Financial Services (Æ)

   3,300       26  

Hanover Insurance Group, Inc. (The)

   10,175       398  

Healthcare Realty Trust, Inc. (ö)

   20         

Heartland Payment Systems, Inc.

   2,800       84  

Hercules Technology Growth Capital, Inc.

   46,510       527  

Heritage Financial Corp.

   1,700       25  

Home BancShares, Inc.

   20,080       614  
 

 

 18   Aggressive Equity Fund


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (expect share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Home Federal Bancorp, Inc.

   1,900       20  

Horace Mann Educators Corp.

   39,795       695  

Hospitality Properties Trust (ö)

   13,884       344  

Iberiabank Corp.

   11,510       581  

Infinity Property & Casualty Corp.

   8,240       475  

Inland Real Estate Corp. (ö)

   13,000       109  

Interactive Brokers Group, Inc. Class A

   19,300       284  

Invesco Mortgage Capital, Inc. (ö)

   19,000       348  

Investment Technology Group, Inc. (Æ)

   16,200       149  

Investors Real Estate Trust (Ñ)(ö)

   1,400       11  

Jack Henry & Associates, Inc.

   10,400       359  

JER Investors Trust, Inc. (Æ)(ß)

   1,771         

KBW, Inc. (Ñ)

   66,663       1,096  

KeyCorp

   45,351       351  

Kite Realty Group Trust (ö)

   7,700       38  

Knight Capital Group, Inc. Class A (Æ)

   50,213       600  

Lakeland Financial Corp.

   13,851       372  

Maiden Holdings, Ltd.

   21,700       188  

MainSource Financial Group, Inc.

   5,000       59  

Manning & Napier, Inc. Class A

   24,240       345  

MarketAxess Holdings, Inc.

   12,920       344  

Medical Properties Trust, Inc. (ö)

   43,660       420  

Medley Capital Corp.

   1,000       12  

Mission West Properties, Inc. (ö)

   1,500       13  

Monmouth Real Estate Investment Corp. Class A (ö)

   8,600       101  

Montpelier Re Holdings, Ltd.

   24,800       528  

Morningstar, Inc.

   8,400       486  

National Bankshares, Inc.

   500       15  

Nelnet, Inc. Class A

   15,000       345  

NGP Capital Resources Co. (Ñ)

   1,100       8  

NorthStar Realty Finance Corp. (Ñ)(ö)

   29,400       154  

OmniAmerican Bancorp, Inc. (Æ)

   4,200       90  

One Liberty Properties, Inc. (ö)

   3,600       68  

OneBeacon Insurance Group, Ltd. Class A

   10,000       130  

Pacific Continental Corp.

   4,000       35  

PacWest Bancorp

   14,800       350  

Parkway Properties, Inc. (ö)

   4,953       57  

PennantPark Investment Corp.

   15,762       163  

PennyMac Mortgage Investment Trust (ö)

   42,200       833  

Peoples Bancorp, Inc.

   2,500       55  

Piper Jaffray Cos. (Æ)

   14,823       348  

Post Properties, Inc. (ö)

   2,500       122  

Potlatch Corp. (ö)

   29,350       938  

PrivateBancorp, Inc. Class A

   23,535       347  

ProAssurance Corp.

   7,600       677  

Prosperity Bancshares, Inc.

   15,240       640  

Protective Life Corp.

   5,100       150  

Raymond James Financial, Inc.

   5,083       174  

Reinsurance Group of America, Inc. Class A

   4,000       213  

Renasant Corp.

   4,800       75  

Republic Bancorp, Inc. Class A (Ñ)

   3,200       71  

RLI Corp.

   5,700       389  

RLJ Lodging Trust (ö)

   17,500       317  

Sabra Health Care REIT, Inc. (ö)

   5,100       87  

Safety Insurance Group, Inc.

   3,100       126  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

SCBT Financial Corp.

   200       7  

SeaBright Holdings, Inc.

   6,600       59  

Selective Insurance Group, Inc.

   1,200       21  

Signature Bank (Æ)

   17,690       1,078  

Southside Bancshares, Inc. (Ñ)

   9,345       210  

Southwest Bancorp, Inc. (Æ)

   1,030       10  

Sovran Self Storage, Inc. (ö)

   6,100       306  

State Bank Financial Corp. (Æ)

   9,400       143  

StellarOne Corp.

   24,322       304  

Sterling Bancorp

   27,610       276  

Strategic Hotels & Resorts, Inc. (Æ)(ö)

   29,600       191  

Sunstone Hotel Investors, Inc. (Æ)(ö)

   35,500       390  

Susquehanna Bancshares, Inc.

   15,200       157  

SVB Financial Group (Æ)

   29,380       1,727  

SY Bancorp, Inc. (Ñ)

   2,500       60  

Symetra Financial Corp.

   7,900       100  

Terreno Realty Corp. (ö)

   2,000       30  

Texas Capital Bancshares, Inc. (Æ)

   21,818       881  

THL Credit, Inc.

   1,700       23  

Trico Bancshares

   1,500       23  

TrustCo Bank Corp.

   22,400       122  

United Financial Bancorp, Inc.

   1,500       22  

United Fire Group, Inc. (Æ)

   6,500       139  

ViewPoint Financial Group, Inc.

   10,277       161  

Virginia Commerce Bancorp, Inc. (Æ)

   7,204       61  

Washington Federal, Inc.

   25,757       435  

Webster Financial Corp.

   42,400       918  

West Coast Bancorp (Æ)

   2,078       41  

Westwood Holdings Group, Inc.

   17,175       640  

Whitestone REIT Class B (Ñ)(ö)

   3,547       49  

Wilshire Bancorp, Inc. (Æ)

   41,300       226  

Winthrop Realty Trust (ö)

   12,128       147  

Wintrust Financial Corp.

   11,000       391  
      

 

 

 
       44,378  
      

 

 

 
Health Care - 10.2%      

Abaxis, Inc. (Æ)

   22,550       834  

Accelrys, Inc. (Æ)

   70,925       574  

Accuray, Inc. (Æ)

   14,600       100  

Affymetrix, Inc. (Æ)

   39,700       186  

Air Methods Corp. (Æ)

   8,640       849  

Akorn, Inc. (Æ)

   25,070       395  

Albany Molecular Research, Inc. (Æ)

   7,200       18  

Alere, Inc. (Æ)

   7,600       148  

Align Technology, Inc. (Æ)

   26,450       886  

Alphatec Holdings, Inc. (Æ)(Ñ)

   6,900       13  

Analogic Corp.

   3,233       200  

AngioDynamics, Inc. (Æ)

   9,600       115  

Array BioPharma, Inc. (Æ)

   25,217       88  

Assisted Living Concepts, Inc. Class A

   4,500       64  

athenahealth, Inc. (Æ)(Ñ)

   6,580       521  

Cambrex Corp. (Æ)

   28,300       266  

Cantel Medical Corp.

   15,600       425  

Catalyst Health Solutions, Inc. (Æ)

   7,950       743  

Centene Corp. (Æ)

   12,510       377  

Computer Programs & Systems, Inc.

   11,131       637  

CONMED Corp.

   21,746       601  
 

 

Aggressive Equity Fund 19


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (expect share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Cross Country Healthcare, Inc. (Æ)

   7,300       32  

CryoLife, Inc. (Æ)

   6,400       33  

Cutera, Inc. (Æ)

   2,300       17  

Cynosure, Inc. Class A (Æ)

   8,764       186  

Cytokinetics, Inc. (Æ)

   23,600       15  

Durect Corp. (Æ)

   1,300       1  

Epocrates, Inc. (Æ)(Ñ)

   6,800       55  

Exactech, Inc. (Æ)

   1,099       18  

Geron Corp. (Æ)(Ñ)

   44,700       77  

Greatbatch, Inc. (Æ)

   12,900       293  

Health Management Associates, Inc.
Class A (Æ)

   15,300       120  

Health Net, Inc. (Æ)

   12,050       292  

Hill-Rom Holdings, Inc.

   13,000       401  

HMS Holdings Corp. (Æ)

   16,100       536  

Impax Laboratories, Inc. (Æ)

   33,560       680  

Insmed, Inc. (Æ)

   7,400       24  

Invacare Corp.

   7,100       110  

IPC The Hospitalist Co., Inc. (Æ)

   13,912       630  

IRIS International, Inc. (Æ)

   3,600       41  

Magellan Health Services, Inc. (Æ)

   7,000       317  

Meridian Bioscience, Inc.

   54,475       1,115  

Molina Healthcare, Inc. (Æ)

   25,500       598  

National Research Corp. (Ñ)

   11,225       588  

Neogen Corp. (Æ)

   16,625       768  

Pacific Biosciences of California, Inc. (Æ)

   18,900       41  

Par Pharmaceutical Cos., Inc. (Æ)

   5,600       202  

PDL BioPharma, Inc. (Ñ)

   7,100       47  

PerkinElmer, Inc.

   7,200       186  

PharMerica Corp. (Æ)

   13,100       143  

Pozen, Inc. (Æ)

   30,600       191  

Quality Systems, Inc.

   13,300       366  

RTI Biologics, Inc. (Æ)

   68,600       258  

Solta Medical, Inc. (Æ)

   15,700       46  

Steris Corp.

   23,490       737  

Targacept, Inc. (Æ)

   10,600       46  

Techne Corp.

   7,000       519  

Triple-S Management Corp. Class B (Æ)

   10,866       199  

Universal American Corp. (Æ)

   27,800       293  

WellCare Health Plans, Inc. (Æ)

   9,000       477  
      

 

 

 
       18,738  
      

 

 

 
Materials and Processing - 6.8%      

A Schulman, Inc.

   16,250       323  

Aceto Corp.

   36,000       325  

AK Steel Holding Corp. (Ñ)

   86,030       505  

AMCOL International Corp.

   16,935       479  

Apogee Enterprises, Inc.

   16,280       262  

Balchem Corp.

   22,500       734  

Buckeye Technologies, Inc.

   2,800       80  

Cabot Corp.

   14,019       570  

Chemtura Corp. (Æ)

   31,700       460  

Comfort Systems USA, Inc.

   8,300       83  

Commercial Metals Co.

   15,130       191  

Cytec Industries, Inc.

   2,715       159  

Encore Wire Corp.

   4,400       118  

Gibraltar Industries, Inc. (Æ)

   12,466       129  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Globe Specialty Metals, Inc.

   44,020       591  

IAMGOLD Corp.

   15,087       178  

Kaiser Aluminum Corp.

   10,080       523  

KapStone Paper and Packaging Corp. (Æ)

   10,400       165  

Kaydon Corp.

   9,165       196  

Kraton Performance Polymers, Inc. (Æ)

   16,717       366  

Landec Corp. (Æ)

   8,355       72  

LB Foster Co. Class A

   3,700       106  

Materion Corp.

   8,500       196  

Minerals Technologies, Inc.

   7,100       453  

Mueller Industries, Inc.

   3,900       166  

NCI Building Systems, Inc. (Æ)

   7,600       82  

Neenah Paper, Inc.

   1,800       48  

Noranda Aluminum Holding Corp.

   14,530       116  

Northwest Pipe Co. (Æ)

   1,000       24  

Olympic Steel, Inc.

   1,300       21  

OM Group, Inc. (Æ)

   23,725       451  

PH Glatfelter Co.

   18,600       304  

PolyOne Corp.

   45,730       626  

Rentech, Inc. (Æ)

   30,100       62  

RTI International Metals, Inc. (Æ)

   8,322       188  

Schweitzer-Mauduit International, Inc.

   5,700       388  

Sensient Technologies Corp.

   19,496       716  

Simpson Manufacturing Co., Inc.

   26,150       772  

Stepan Co.

   1,700       160  

Titanium Metals Corp.

   1,970       22  

TPC Group, Inc. (Æ)

   12,010       444  

Tredegar Corp.

   6,438       94  

Universal Forest Products, Inc.

   3,880       151  

WR Grace & Co. (Æ)

   6,500       328  
      

 

 

 
       12,427  
      

 

 

 
Producer Durables - 17.8%      

ACCO Brands Corp. (Æ)

   9,600       99  

Advisory Board Co. (The) (Æ)

   18,218       903  

Aerovironment, Inc. (Æ)

   10,225       269  

Alaska Air Group, Inc. (Æ)

   11,000       395  

Alexander & Baldwin Holdings, Inc.

   4,235       226  

American Railcar Industries, Inc. (Æ)

   6,300       171  

American Superconductor Corp. (Æ)(Ñ)

   8,800       41  

AO Smith Corp.

   5,400       264  

Argan, Inc.

   1,300       18  

Ascent Capital Group, Inc. Class A (Æ)

   900       47  

Astec Industries, Inc. (Æ)

   16,823       517  

BE Aerospace, Inc. (Æ)

   6,015       263  

Brady Corp. Class A

   10,180       280  

Briggs & Stratton Corp. (Ñ)

   17,250       302  

Brink’s Co. (The)

   3,400       79  

Bristow Group, Inc.

   17,000       691  

CDI Corp.

   15,100       248  

Celadon Group, Inc.

   7,800       128  

Chart Industries, Inc. (Æ)

   5,975       411  

CIRCOR International, Inc.

   7,298       249  

Columbus McKinnon Corp. (Æ)

   16,500       249  

Consolidated Graphics, Inc. (Æ)

   2,180       63  

Con-way, Inc.

   17,300       625  

Corrections Corp. of America

   4,200       124  
 

 

 20   Aggressive Equity Fund


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (expect share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

CoStar Group, Inc. (Æ)

   18,650       1,513  

CRA International, Inc. (Æ)

   500       7  

Crane Co.

   5,300       193  

DHT Holdings, Inc.

   18,800       12  

DXP Enterprises, Inc. (Æ)

   7,600       315  

Electro Rent Corp.

   3,000       49  

Electronics for Imaging, Inc. (Æ)

   29,952       487  

EMCOR Group, Inc.

   1,400       39  

EnerSys (Æ)

   12,400       435  

Exponent, Inc. (Æ)

   5,100       269  

FARO Technologies, Inc. (Æ)

   8,025       338  

Flow International Corp. (Æ)

   19,900       63  

FreightCar America, Inc.

   12,100       278  

G&K Services, Inc. Class A

   6,200       193  

GP Strategies Corp. (Æ)

   2,900       54  

GrafTech International, Ltd. (Æ)

   22,089       213  

Granite Construction, Inc.

   18,534       484  

Gulfmark Offshore, Inc. Class A (Æ)

   8,000       272  

H&E Equipment Services, Inc. (Æ)

   6,000       90  

Hardinge, Inc.

   3,300       30  

Harsco Corp.

   24,220       494  

Hawaiian Holdings, Inc. (Æ)

   31,900       208  

Heidrick & Struggles International, Inc.

   5,000       88  

Hub Group, Inc. Class A (Æ)

   20,990       760  

Huntington Ingalls Industries, Inc. (Æ)

   1,300       52  

Huron Consulting Group, Inc. (Æ)

   2,000       63  

InnerWorkings, Inc. (Æ)(Ñ)

   40,000       541  

John B Sanfilippo & Son, Inc. (Æ)

   11,600       207  

Kadant, Inc. (Æ)

   700       16  

KBR, Inc.

   5,000       124  

Kelly Services, Inc. Class A

   17,700       228  

Kennametal, Inc.

   11,359       376  

Kimball International, Inc. Class B

   4,100       32  

Knight Transportation, Inc.

   41,910       670  

Knoll, Inc.

   38,050       511  

Layne Christensen Co. (Æ)

   10,490       217  

Lexmark International, Inc. Class A

   5,000       133  

Marlin Business Services Corp.

   1,800       30  

Marten Transport, Ltd.

   4,400       94  

MAXIMUS, Inc.

   12,767       661  

McGrath RentCorp

   10,070       267  

Metalico, Inc. (Æ)

   10,687       24  

Met-Pro Corp.

   2,700       25  

Modine Manufacturing Co. (Æ)

   20,400       141  

NACCO Industries, Inc. Class A

   3,000       349  

Navigant Consulting, Inc. (Æ)

   60,300       762  

Net 1 UEPS Technologies, Inc. (Æ)

   13,800       116  

Orbital Sciences Corp. (Æ)

   10,200       132  

OSI Systems, Inc. (Æ)

   1,000       63  

PHH Corp. (Æ)(Ñ)

   21,400       374  

Primoris Services Corp.

   25,200       302  

Quad/Graphics, Inc. (Ñ)

   8,200       118  

Quality Distribution, Inc. (Æ)

   6,600       73  

Quanta Services, Inc. (Æ)

   11,821       285  

Raven Industries, Inc.

   17,275       1,201  

Regal-Beloit Corp.

   2,495       155  

Resources Connection, Inc.

   50,900       626  

Roadrunner Transportation Systems, Inc. (Æ)

   7,300       123  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Robbins & Myers, Inc.

   2,800       117  

Rollins, Inc.

   28,525       638  

Ryder System, Inc.

   12,940       466  

Saia, Inc. (Æ)

   14,700       322  

ServiceSource International, Inc. (Æ)(Ñ)

   32,410       449  

Shaw Group, Inc. (The) (Æ)

   12,000       328  

SkyWest, Inc.

   7,200       47  

Southwest Airlines Co.

   42,003       387  

Spartan Motors, Inc.

   10,017       52  

Steelcase, Inc. Class A

   32,920       297  

Sun Hydraulics Corp.

   39,200       951  

Swift Transportation Co. Class A (Æ)

   15,300       145  

Sykes Enterprises, Inc. (Æ)

   18,700       298  

Tetra Tech, Inc. (Æ)

   32,740       854  

Tidewater, Inc.

   6,880       319  

Titan Machinery, Inc. (Æ)(Ñ)

   11,300       343  

Towers Watson & Co. Class A

   9,000       539  

Trimas Corp. (Æ)

   5,700       115  

Triumph Group, Inc.

   10,520       592  

TrueBlue, Inc. (Æ)

   3,500       54  

Tsakos Energy Navigation, Ltd.

   46,240       225  

United Stationers, Inc.

   18,370       495  

URS Corp.

   9,900       345  

US Airways Group, Inc. (Æ)(Ñ)

   41,600       555  

US Ecology, Inc.

   3,100       55  

Wabtec Corp.

   10,824       844  

Wesco Aircraft Holdings, Inc. (Æ)(Ñ)

   18,740       239  
      

 

 

 
       32,708  
      

 

 

 
Technology - 16.2%      

Acacia Research Corp. (Æ)

   32,930       1,227  

ACI Worldwide, Inc. (Æ)

   22,200       981  

Actuate Corp. (Æ)

   4,800       33  

ADTRAN, Inc.

   16,190       489  

Akamai Technologies, Inc. (Æ)

   5,170       164  

Allot Communications, Ltd. (Æ)

   16,780       467  

American Software, Inc. Class A (Æ)

   24,900       198  

Anadigics, Inc. (Æ)

   2,000       4  

Arris Group, Inc. (Æ)

   5,400       75  

Aviat Networks, Inc. (Æ)

   22,900       64  

Avid Technology, Inc. (Æ)

   6,500       48  

Axcelis Technologies, Inc. (Æ)

   79,714       96  

Bel Fuse, Inc. Class B

   600       11  

Blackbaud, Inc.

   20,225       519  

Bottomline Technologies, Inc. (Æ)

   38,625       697  

Brooks Automation, Inc.

   41,310       390  

Calix, Inc. (Æ)

   10,700       88  

Callidus Software, Inc. (Æ)(Ñ)

   45,210       225  

CIBER, Inc. (Æ)

   5,300       23  

Cohu, Inc. (Å)

   36,980       376  

comScore, Inc. (Æ)

   18,750       309  

Comtech Telecommunications Corp.

   10,200       292  

Cray, Inc. (Æ)

   6,100       74  

Cree, Inc. (Æ)(Ñ)

   8,834       227  

CSG Systems International, Inc. (Æ)

   7,800       135  

Diebold, Inc.

   8,100       299  

Dot Hill Systems Corp. (Æ)

   15,300       17  
 

 

Aggressive Equity Fund 21


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (expect share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

DSP Group, Inc. (Æ)

   9,500       60  

Electro Scientific Industries, Inc.

   33,187       392  

Emulex Corp. (Æ)

   30,000       216  

FormFactor, Inc. (Æ)

   38,600       250  

Hittite Microwave Corp. (Æ)

   9,725       497  

IAC/InterActiveCorp

   8,000       365  

Inphi Corp. (Æ)

   54,560       517  

Insight Enterprises, Inc. (Æ)

   19,100       322  

Integrated Device Technology, Inc. (Æ)

   52,700       296  

Integrated Silicon Solution, Inc. (Æ)

   10,400       105  

International Rectifier Corp. (Æ)

   14,665       293  

Intersil Corp. Class A

   108,110       1,152  

Intevac, Inc. (Æ)

   9,100       68  

IntraLinks Holdings, Inc. (Æ)

   10,541       46  

InvenSense, Inc. Class A (Æ)

   15,326       173  

Kemet Corp. (Æ)

   23,901       144  

Kulicke & Soffa Industries, Inc. (Æ)

   35,100       313  

LivePerson, Inc. (Æ)

   20,423       389  

LSI Corp. (Æ)

   44,100       281  

LTX-Credence Corp. (Æ)

   18,100       121  

Manhattan Associates, Inc. (Æ)

   7,000       320  

Mattson Technology, Inc. (Æ)(Ñ)

   30,900       54  

Mentor Graphics Corp. (Æ)

   81,700       1,226  

Mercury Computer Systems, Inc. (Æ)

   23,234       300  

Methode Electronics, Inc. (Å)

   44,821       382  

Micrel, Inc.

   72,810       694  

Mindspeed Technologies, Inc. (Æ)(Ñ)

   17,300       43  

MKS Instruments, Inc.

   23,300       674  

NeuStar, Inc. Class A (Æ)

   6,200       207  

NIC, Inc.

   52,100       662  

NVE Corp. (Æ)

   13,800       742  

PDF Solutions, Inc. (Æ)

   900       9  

Perficient, Inc. (Æ)

   20,800       234  

Pericom Semiconductor Corp. (Æ)

   6,700       60  

Plantronics, Inc.

   2,500       84  

Plexus Corp. (Æ)

   5,900       166  

Polycom, Inc. (Æ)

   22,404       236  

PROS Holdings, Inc. (Æ)

   42,525       715  

Radisys Corp. (Æ)

   14,800       93  

RealNetworks, Inc.

   5,602       48  

Sanmina-SCI Corp. (Æ)

   46,200       378  

Seachange International, Inc. (Æ)

   11,500       95  

Sigma Designs, Inc. (Æ)

   14,200       91  

Silicon Image, Inc. (Æ)

   26,900       111  

Silicon Laboratories, Inc. (Æ)

   1,600       61  

Silicon Motion Technology Corp. (Æ)(Ñ)

   13,425       189  

SolarWinds, Inc. (Æ)

   13,100       571  

Sonus Networks, Inc. (Æ)

   78,800       169  

Sourcefire, Inc. (Æ)

   14,220       731  

Spansion, Inc. Class A (Æ)

   17,400       191  

Stratasys, Inc. (Æ)(Ñ)

   20,350       1,008  

support.com, Inc. (Æ)

   7,614       24  

Synchronoss Technologies, Inc. (Æ)

   28,980       535  

SYNNEX Corp. (Æ)

   10,200       352  

Syntel, Inc.

   1,300       79  

Tangoe, Inc. (Æ)

   48,670       1,036  

Tech Data Corp. (Æ)

   6,900       332  

TeleNav, Inc. (Æ)

   1,917       12  
   Principal
Amount ($)
or Shares
   Market
Value
$
 

Tellabs, Inc.

   115,200     384  

Tessera Technologies, Inc.

   54,730     841  

TNS, Inc. (Æ)

   4,000     72  

Tyler Technologies, Inc. (Æ)

   23,200     936  

Ubiquiti Networks, Inc. (Æ)(Ñ)

   2,100     30  

Unisys Corp. (Æ)

   17,800     348  

United Online, Inc.

   19,700     83  

Vishay Intertechnology, Inc. (Æ)

   27,884     263  

Vocera Communications, Inc. (Æ)

   8,561     229  

Xyratex, Ltd.

   10,300     116  
    

 

 

 
     29,744  
    

 

 

 
Utilities - 2.2%    

Alaska Communications Systems Group, Inc. (Ñ)

   7,800     16  

American States Water Co.

   400     16  

Artesian Resources Corp. Class A

   1,200     26  

Black Hills Corp.

   10,209     328  

Cbeyond, Inc. (Æ)

   4,600     31  

Chesapeake Utilities Corp.

   1,900     83  

Cincinnati Bell, Inc. (Æ)

   42,100     157  

Double Eagle Petroleum Co. (Æ)

   3,000     13  

El Paso Electric Co.

   29,520     980  

Fairpoint Communications, Inc. (Æ)(Ñ)

   6,400     39  

GenOn Energy, Inc. (Æ)

   260,400     446  

NorthWestern Corp.

   16,095     590  

NTELOS Holdings Corp.

   855     16  

PNM Resources, Inc.

   30,800     602  

Portland General Electric Co.

   20,618     550  

SJW Corp.

   3,100     74  
    

 

 

 
     3,967  
    

 

 

 
Total Common Stocks
(cost $171,089)
     179,132  
    

 

 

 
Short-Term Investments - 2.2%    

Russell U.S. Cash Management Fund

   4,033,709 (¥   4,034  
    

 

 

 
Total Short-Term Investments
(cost $4,034)
     4,034  
    

 

 

 
Other Securities - 4.5%    

Russell Investment Funds Liquidating Trust (×)

   187,256 (¥   190  

Russell U.S. Cash Collateral Fund (×)

   8,063,195 (¥   8,063  
    

 

 

 
Total Other Securities
(cost $8,250)
     8,253  
    

 

 

 
Total Investments - 104.4% (identified cost $183,373)     191,419  
Other Assets and Liabilities,
Net - (4.4%)
     (8,072
    

 

 

 
Net Assets - 100.0%     183,347  
    

 

 

 

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

 

 

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

 

 22   Aggressive Equity Fund


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except contract amounts)

 

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

Long Positions

         

Russell 2000 Mini Index Futures (CME)

   1    USD     80    09/12   4  
         

 

 

 

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

          4  
         

 

 

 

 

 

 

Presentation of Portfolio Holdings — June 30, 2012 (Unaudited)

Amounts in thousands

 

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

Common Stocks

          

Consumer Discretionary

  $25,448    $    $    $25,448     13.9  

Consumer Staples

   3,574               3,574     2.0  

Energy

   8,136          12     8,148     4.4  

Financial Services

   44,378               44,378     24.2  

Health Care

   18,738               18,738     10.2  

Materials and Processing

   12,427               12,427     6.8  

Producer Durables

   32,708               32,708     17.8  

Technology

   29,744               29,744     16.2  

Utilities

   3,967               3,967     2.2  

Short-Term Investments

        4,034          4,034     2.2  

Other Securities

        8,253          8,253     4.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

   179,120     12,287     12     191,419     104.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

Other Assets and Liabilities, Net

           (4.4
          

 

 

 
           100.0  
          

 

 

 

Other Financial Instruments

          

Futures Contracts

   4               4     
  

 

 

   

 

 

   

 

 

   

 

 

   

Total Other Financial Instruments**

  $4    $    $    $4    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

* Less than .05% of net assets.
** Other financial instruments reflected, such as futures, forwards, interest rate swaps and credit default swaps 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 ended June 30, 2012 were less than 1% of net assets.

There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended June 30, 2012.

 

Aggressive Equity Fund 23


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Fair Value of Derivative Instruments — June 30, 2012 (Unaudited)

Amounts in thousands

 

Derivatives not accounted for as hedging instruments  Equity
Contracts
 
  

Location: Statement of Assets and Liabilities - Assets

  

Daily variation margin on futures contracts*

  $4  
  

 

 

 
Derivatives not accounted for as hedging instruments  Equity
Contracts
 

Location: Statement of Operations - Net realized gain (loss)

  

Futures contracts

  $692  
  

 

 

 

Location: Statement of Operations - Net change in unrealized appreciation (depreciation)

  

Futures contracts

  $(20
  

 

 

 

 

*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 and 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.

 

 24   Aggressive Equity Fund


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Statement of Assets and Liabilities — June 30, 2012 (Unaudited)

 

Amounts in thousands    
 

Assets

 

Investments, at identified cost

 $183,373 

Investments, at market*, **

  191,419 

Cash (restricted)

  120 

Receivables:

 

Dividends and interest

  235 

Dividends from affiliated Russell funds

  1 

Investments sold

  2,169 

Fund shares sold

  1 

Daily variation margin on futures contracts

  9 

Prepaid expenses

  2 
 

 

 

 

Total assets

  193,956 
 

 

 

 

Liabilities

 

Payables:

 

Investments purchased

  2,020 

Fund shares redeemed

  171 

Accrued fees to affiliates

  131 

Other accrued expenses

  37 

Payable upon return of securities loaned

  8,250 
 

 

 

 

Total liabilities

  10,609 
 

 

 

 
 

Net Assets

 $183,347 
 

 

 

 

 

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

 

Aggressive Equity Fund 25


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Statement of Assets and Liabilities, continued — June 30, 2012 (Unaudited)

 

Amounts in thousands    
 

Net Assets Consist of:

 

Undistributed (overdistributed) net investment income

 $(17

Accumulated net realized gain (loss)

  (15,967

Unrealized appreciation (depreciation) on:

 

Investments

  8,046 

Futures contracts

  4 

Shares of beneficial interest

  148 

Additional paid-in capital

  191,133 
 

 

 

 

Net Assets

 $183,347 
 

 

 

 

Net Asset Value, offering and redemption price per share:

 

Net asset value per share: (a)

 $12.35  

Net assets

 $183,346,853 

Shares outstanding ($.01 par value)

  14,844,008 

Amounts in thousands

 
 

*       Securities on loan included in investments

 $8,755 

**     Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Funds Liquidating Trust and Russell U.S. Cash Collateral Fund

 $12,287 

 

(a)Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

 

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

 

 26   Aggressive Equity Fund


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Statement of Operations — For the Period Ended June 30, 2012 (Unaudited)

 

Amounts in thousands    
 

Investment Income

 

Dividends

 $1,311  

Dividends from affiliated Russell funds

  5  

Securities lending income

  81  
 

 

 

 

Total investment income

  1,397  
 

 

 

 

Expenses

 

Advisory fees

  839  

Administrative fees

  47  

Custodian fees

  70  

Transfer agent fees

  4  

Professional fees

  27  

Trustees’ fees

  2  

Miscellaneous

  7  
 

 

 

 

Expenses before reductions

  996  

Expense reductions

  (53
 

 

 

 

Net expenses

  943  
 

 

 

 
 

Net investment income (loss)

  454  
 

 

 

 

Net Realized and Unrealized Gain (Loss)

 

Net realized gain (loss) on:

 

Investments

  19,843  

Futures contracts

  692  
 

 

 

 

Net realized gain (loss)

  20,535  
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments

  (4,939

Futures contracts

  (20
 

 

 

 

Net change in unrealized appreciation (depreciation)

  (4,959
 

 

 

 

Net realized and unrealized gain (loss)

  15,576  
 

 

 

 

Net Increase (Decrease) in Net Assets from Operations

 $16,030  
 

 

 

 

 

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

 

Aggressive Equity Fund 27


Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Statements of Changes in Net Assets

 

Amounts in thousands Period Ended
June 30, 2012
(Unaudited)
  Fiscal Year
Ended
December 31, 2011
 
  

Increase (Decrease) in Net Assets

  

Operations

  

Net investment income (loss)

 $454   $704  

Net realized gain (loss)

  20,535    14,846  

Net change in unrealized appreciation (depreciation)

  (4,959  (22,975
 

 

 

  

 

 

 

Net increase (decrease) in net assets from operations

  16,030    (7,425
 

 

 

  

 

 

 

Distributions

  

From net investment income

  (471  (943
 

 

 

  

 

 

 

Net decrease in net assets from distributions

  (471  (943
 

 

 

  

 

 

 

Share Transactions

  

Net increase (decrease) in net assets from share transactions

  (9,247  (6,475

Fund Reimbursements

      115  
 

 

 

  

 

 

 

Total Net Increase (Decrease) in Net Assets

  6,312    (14,728

Net Assets

  

Beginning of period

  177,035    191,763  
 

 

 

  

 

 

 

End of period

 $183,347   $177,035  
 

 

 

  

 

 

 

Undistributed (overdistributed) net investment income included in net assets

 $(17 $  

 

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

 

 28   Aggressive Equity Fund


Table of Contents

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Table of Contents

Russell Investment Funds

Aggressive Equity Fund

Financial Highlights

For a Share Outstanding Throughout the Period

 

    
$
Net Asset Value,
Beginning of
Period
   $
Net Investment
Income (Loss)
(a)(b)
   $
Net Realized
and Unrealized
Gain (Loss)
   $
Total from
Investment
Operations
   $
Distributions
from Net
Investment Income
   $
Distributions
from Net
Realized Gain
 

June 30, 2012(1)

   11.36     .03     .99     1.02     (.03     

December 31, 2011

   11.92     .04     (.54   (.50   (.06     

December 31, 2010

   9.59     .04     2.34     2.38     (.05     

December 31, 2009

   7.18     .05     2.40     2.45     (.04     

December 31, 2008

   12.99     .09     (5.81   (5.72   (.09   (c) 

December 31, 2007

   14.45     .06     .40     .46     (.05    (1.87)  

 

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

 

 30   Aggressive Equity Fund


Table of Contents
$
Total
Distributions
  $
Net Asset Value,
End of
Period
  %
Total
Return
(d)(f)
  $
Net Assets,
End of Period
(000)
  %
Ratio of Expenses
to Average
Net Assets,
Gross
(e)
  %
Ratio of Expenses
to Average
Net Assets,
Net
(b)(e)
  %
Ratio of Net
Investment Income
to Average Net
Assets
(b)(e)
  % Portfolio
Turnover Rate
(d)
 
 (.03  12.35    8.98    183,347   1.07    1.01    .49    84 
 (.06  11.36    (4.20  177,035   1.08    1.02    .37    105 
 (.05  11.92    24.88    191,763   1.11    1.05    .44    107 
 (.04  9.59    34.32    158,671   1.13    1.02    .65    161 
 (.09  7.18    (44.16  123,088   1.18    1.05    .84    161 
 (1.92  12.99    3.42    228,927   1.13    1.05    .39    180 

 

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

 

Aggressive Equity Fund 31


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Shareholder Expense Example — June 30, 2012 (Unaudited)

 

 

 

Fund Expenses

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

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory 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, 2012 to June 30, 2012.

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, 2012

  $1,000.00    $1,000.00  

Ending Account Value

June 30, 2012

  $1,038.70    $1,019.94  

Expenses Paid During Period*

  $5.02    $4.97  

 

*Expenses are equal to the Fund’s annualized expense ratio of 0.99% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher.
 

 

 32   Non-U.S. Fund


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      
Common Stocks - 91.3%  
Australia - 0.8%      

QBE Insurance Group, Ltd.

   92,326       1,273  

Wesfarmers, Ltd.

   20,200       622  

Westpac Banking Corp.

   35,860       780  
      

 

 

 
       2,675  
      

 

 

 
Belgium - 0.4%      

Anheuser-Busch InBev NV

   10,525       818  

KBC Groep NV

   17,798       378  
      

 

 

 
       1,196  
      

 

 

 
Bermuda - 1.9%      

Credicorp, Ltd.

   9,300       1,171  

Li & Fung, Ltd.

   604,000       1,172  

PartnerRe, Ltd. - ADR

   10,075       762  

RenaissanceRe Holdings, Ltd.

   9,200       699  

Seadrill, Ltd. (Ñ)

   34,000       1,208  

Seadrill, Ltd.

   2,800       100  

Yue Yuen Industrial Holdings, Ltd.

   289,000       910  
      

 

 

 
       6,022  
      

 

 

 
Brazil - 1.4%      

BM&FBovespa SA

   121,800       622  

BR Malls Participacoes SA

   55,700       638  

Brookfield Incorporacoes SA

   469,900       774  

Embraer SA - ADR (Æ)

   60,600       1,608  

Tim Participacoes SA - ADR

   28,410       780  
      

 

 

 
       4,422  
      

 

 

 
Canada - 1.4%      

Brookfield Asset Management, Inc. Class A

   41,100       1,360  

Canadian National Railway Co. (Æ)(Þ)

   23,790       2,008  

Toronto-Dominion Bank (The) (Ñ)

   16,700       1,307  
      

 

 

 
       4,675  
      

 

 

 
Cayman Islands - 0.9%      

ASM Pacific Technology, Ltd.

   90,900       1,159  

Baidu, Inc. - ADR (Æ)

   8,766       1,008  

NetEase, Inc. - ADR (Æ)(Ñ)

   15,039       885  
      

 

 

 
       3,052  
      

 

 

 
China - 0.4%      

Industrial & Commercial Bank of China Class H

   2,364,000       1,322  
      

 

 

 
Czech Republic - 0.2%      

Komercni Banka AS

   3,384       588  
      

 

 

 
Denmark - 0.9%      

Danske Bank A/S (Æ)

   94,476       1,317  

Novo Nordisk A/S Class B

   11,954       1,729  
      

 

 

 
       3,046  
      

 

 

 
France - 7.6%      

Air Liquide SA Class A

   15,652       1,791  

Arkema SA

   11,911       780  

BNP Paribas SA

   43,745       1,689  
   Principal
Amount ($)
or Shares
   Market
Value
$
 

Capital Gemini SA

   51,500     1,898  

Casino Guichard Perrachon SA (Æ)

   4,500     395  

Credit Agricole SA (Æ)

   99,985     441  

Danone SA

   27,305     1,695  

Dassault Systemes SA (Ñ)

   17,472     1,641  

GDF Suez

   35,500     847  

Lagardere SCA

   28,031     783  

Legrand SA - ADR

��  29,744     1,012  

LVMH Moet Hennessy Louis Vuitton
SA - ADR

   11,503     1,753  

Natixis

   112,358     304  

Pernod-Ricard SA

   16,559     1,771  

Rallye SA

   45,285     1,295  

Sanofi - ADR

   31,682     2,403  

Schneider Electric SA

   27,333     1,523  

Total SA

   42,275     1,909  

UBISOFT Entertainment (Æ)

   102,545     688  
    

 

 

 
     24,618  
    

 

 

 
Germany - 7.9%    

BASF SE

   20,775     1,444  

Bayer AG

   34,299     2,473  

Bayerische Motoren Werke AG

   18,212     1,320  

Beiersdorf AG (Æ)

   22,737     1,475  

Brenntag AG

   6,258     692  

Deutsche Boerse AG

   28,584     1,543  

E.ON AG

   51,600     1,111  

Fresenius SE & Co. KGaA

   13,669     1,417  

Henkel AG & Co. KGaA

   13,037     722  

Linde AG

   19,126     2,979  

Merck KGaA

   10,447     1,043  

MTU Aero Engines Holding AG

   45,971     3,375  

SAP AG - ADR

   56,158     3,317  

Siemens AG

   17,225     1,448  

Volkswagen AG

   9,866     1,489  
    

 

 

 
     25,848  
    

 

 

 
Hong Kong - 1.4%    

AIA Group, Ltd.

   741,400     2,556  

China Unicom Hong Kong, Ltd.

   520,000     653  

CNOOC, Ltd.

   191,000     385  

Lenovo Group, Ltd.

   1,318,000     1,125  
    

 

 

 
     4,719  
    

 

 

 
India - 0.4%    

ICICI Bank, Ltd. - ADR

   35,940     1,165  

Infosys, Ltd. - ADR (Ñ)

   4,910     221  
    

 

 

 
     1,386  
    

 

 

 
Ireland - 0.2%    

DCC PLC

   30,400     704  
    

 

 

 
Israel - 1.1%    

Check Point Software Technologies, Ltd. (Æ)(Ñ)

   27,940     1,386  

Teva Pharmaceutical Industries, Ltd. - ADR

   51,625     2,036  
    

 

 

 
     3,422  
    

 

 

 
 

 

Non-U.S. Fund 33


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
   Market
Value
$
 
    
Italy - 2.2%    

Enel SpA

   309,700     999  

ENI SpA - ADR

   141,607     3,022  

Finmeccanica SpA (Æ)(Ñ)

   93,746     379  

Snam Rete Gas SpA

   352,425     1,572  

Telecom Italia SpA

   1,278,100     1,259  
    

 

 

 
     7,231  
    

 

 

 
Japan - 14.3%    

Amada Co., Ltd.

   176,700     1,048  

Canon, Inc. (Ñ)

   125,600     5,029  

Dai-ichi Life Insurance Co., Ltd. (The)

   675     782  

Daito Trust Construction Co., Ltd.

   6,000     569  

Denso Corp.

   50,600     1,723  

FANUC Corp.

   15,800     2,596  

Fast Retailing Co., Ltd.

   6,800     1,365  

Honda Motor Co., Ltd.

   43,000     1,498  

Hoya Corp.

   45,800     1,009  

Inpex Corp.

   251     1,407  

ITOCHU Corp.

   247,100     2,593  

Japan Tobacco, Inc.

   30,600     907  

KDDI Corp.

   234     1,509  

Lawson, Inc.

   19,300     1,350  

Mabuchi Motor Co., Ltd. (Ñ)

   34,600     1,379  

Mitsubishi UFJ Financial Group, Inc.

   186,700     894  

Mori Seiki Co., Ltd. (Ñ)

   87,400     759  

MS&AD Insurance Group Holdings

   67,100     1,174  

Nikon Corp.

   49,000     1,489  

Nintendo Co., Ltd.

   3,400     397  

NTT DoCoMo, Inc.

   953     1,586  

ORIX Corp.

   17,930     1,669  

Shin-Etsu Chemical Co., Ltd.

   71,000     3,906  

Softbank Corp.

   41,100     1,528  

Sumitomo Corp.

   150,100     2,100  

Sumitomo Mitsui Financial Group, Inc.

   39,900     1,316  

THK Co., Ltd.

   61,600     1,167  

Toshiba TEC Corp.

   100,479     378  

Toyota Motor Corp.

   21,100     850  

Yokogawa Electric Corp.

   253,900     2,621  
    

 

 

 
     46,598  
    

 

 

 
Jersey - 1.6%    

Delphi Automotive PLC (Æ)

   56,620     1,444  

Glencore International PLC (Ñ)

   196,595     913  

Petrofac, Ltd.

   53,955     1,180  

WPP PLC

   125,552     1,526  
    

 

 

 
     5,063  
    

 

 

 
Luxembourg - 0.2%    

ArcelorMittal

   37,073     572  

Oriflame Cosmetics SA

   5,700     191  
    

 

 

 
     763  
    

 

 

 
Netherlands - 5.6%    

Aegon NV

   244,343     1,138  

Akzo Nobel NV

   71,771     3,376  

European Aeronautic Defence and Space Co. NV

   30,165     1,070  
   Principal
Amount ($)
or Shares
   Market
Value
$
 

Heineken NV

   43,469     2,271  

ING Groep NV (Æ)

   539,145     3,637  

Koninklijke Philips Electronics NV

   99,004     1,958  

Randstad Holding NV (Æ)

   37,814     1,117  

Reed Elsevier NV(Æ)

   101,750     1,164  

Unilever NV

   73,723     2,467  
    

 

 

 
     18,198  
    

 

 

 
Norway - 1.7%    

DNB ASA

   162,500     1,616  

Marine Harvest ASA (Æ)

   1,981,100     1,413  

Orkla ASA

   186,200     1,352  

Statoil ASA Class N

   50,602     1,210  
    

 

 

 
     5,591  
    

 

 

 
Russia - 0.5%    

Gazprom OAO - ADR (Æ)

   161,390     1,528  
    

 

 

 
Singapore - 2.0%    

DBS Group Holdings, Ltd.

   46,000     508  

Jardine Cycle & Carriage, Ltd.

   95,500     3,523  

Singapore Telecommunications, Ltd.

   185,000     484  

United Overseas Bank, Ltd.

   132,100     1,963  
    

 

 

 
     6,478  
    

 

 

 
South Africa - 0.4%    

FirstRand, Ltd.

   298,944     969  

MTN Group, Ltd.

   23,829     412  
    

 

 

 
     1,381  
    

 

 

 
South Korea - 1.6%    

Samsung Electronics Co., Ltd.

   3,569     3,784  

Shinhan Financial Group Co., Ltd.

   44,871     1,562  
    

 

 

 
     5,346  
    

 

 

 
Spain - 1.3%    

Amadeus IT Holding SA Class A

   57,328     1,214  

Banco Santander SA - ADR

   321,483     2,147  

Indra Sistemas SA (Ñ)

   47,450     443  

Red Electrica Corp. SA (Ñ)

   9,213     402  
    

 

 

 
     4,206  
    

 

 

 
Sweden - 0.6%    

Atlas Copco AB Class A

   49,838     1,076  

Hennes & Mauritz AB Class B

   23,150     832  
    

 

 

 
     1,908  
    

 

 

 
Switzerland - 8.7%    

ABB, Ltd. (Æ)

   64,900     1,059  

ABB, Ltd. - ADR (Æ)

   29,600     483  

ACE, Ltd.

   9,950     738  

Cie Financiere Richemont SA

   5,633     309  

Credit Suisse Group AG (Æ)

   33,512     612  

GAM Holding AG (Æ)

   60,701     676  

Geberit AG (Æ)

   4,710     929  

Givaudan SA (Æ)

   446     438  
 

 

 34   Non-U.S. Fund


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
   Market
Value
$
 
    

Helvetia Holding AG

   4,215     1,274  

Julius Baer Group, Ltd. (Æ)

   42,980     1,556  

Lindt & Spruengli AG (Æ)

   18     661  

Nestle SA

   65,735     3,922  

Novartis AG

   76,575     4,271  

Partners Group Holding AG

   5,196     924  

Roche Holding AG

   14,545     2,511  

Sonova Holding AG (Æ)

   6,885     664  

Swiss Re AG (Æ)

   10,574     664  

Syngenta AG

   4,502     1,537  

TE Connectivity, Ltd.

   45,400     1,449  

UBS AG (Æ)

   192,685     2,253  

Zurich Insurance Group AG (Æ)

   5,853     1,321  
    

 

 

 
     28,251  
    

 

 

 
Taiwan - 1.4%    

Hon Hai Precision Industry Co., Ltd.

   643,624     1,941  

Hon Hai Precision Industry Co., Ltd. - GDR

   99,784     604  

Taiwan Semiconductor Manufacturing Co., Ltd. - ADR

   90,025     1,256  

Teco Electric and Machinery Co., Ltd.

   1,326,700     867  
    

 

 

 
     4,668  
    

 

 

 
United Kingdom - 21.0%    

Aegis Group plc(AE)

   518,197     1,316  

Anglo American PLC

   51,774     1,699  

ARM Holdings PLC

   142,819     1,137  

Aviva PLC

   145,971     625  

Babcock International Group PLC

   71,715     960  

BAE Systems PLC

   422,300     1,911  

Barclays PLC

   939,589     2,405  

Berkeley Group Holdings PLC (Æ)

   34,800     771  

BG Group PLC

   89,172     1,825  

BP PLC

   587,700     3,938  

BP PLC - ADR

   7,400     300  

British American Tobacco PLC

   34,496     1,756  

Burberry Group PLC

   63,366     1,322  

Carillion PLC

   158,375     686  

Compass Group PLC

   307,223     3,223  

Dairy Crest Group PLC

   193,209     1,001  

Diageo PLC

   71,027     1,827  

GlaxoSmithKline PLC - ADR

   55,900     1,268  

Hays PLC

   240,848     278  

Home Retail Group PLC

   157,230     210  

HSBC Holdings PLC

   453,282     3,997  

Imperial Tobacco Group PLC

   106,147     4,083  

Invensys PLC (Æ)

   98,200     343  

Johnson Matthey PLC Class H

   37,612     1,304  

National Grid PLC

   208,700     2,209  

Pearson PLC

   70,163     1,394  

Reckitt Benckiser Group PLC

   25,027     1,320  

Rio Tinto PLC (Æ)

   28,270     1,350  

Rolls-Royce Holdings PLC (Æ)

   132,822     1,792  

Royal Bank of Scotland Group PLC (Æ)

   140,762     477  

Royal Dutch Shell PLC Class A

   190,471     6,432  

Royal Dutch Shell PLC Class B

   43,127     1,505  

Sage Group PLC (The)

   220,021     956  

Smith & Nephew PLC

   122,585     1,227  
   Principal
Amount ($)
or Shares
   Market
Value
$
 

Smiths Group PLC

   53,267     848  

Standard Chartered PLC

   128,762     2,807  

Travis Perkins PLC

   148,200     2,256  

Vodafone Group PLC - ADR (Æ)

   1,739,592     4,886  

Weir Group PLC (The)

   34,166     824  
    

 

 

 
     68,468  
    

 

 

 
United States - 1.2%    

MercadoLibre, Inc. (Ñ)

   10,600     803  

Philip Morris International, Inc.

   34,700     3,028  
    

 

 

 
     3,831  
    

 

 

 
Total Common Stocks
(cost $293,925)
     297,204  
    

 

 

 
Preferred Stocks - 0.3%    
Brazil - 0.2%    

Usinas Siderurgicas de Minas
Gerais SA (Æ)

   148,300     467  
    

 

 

 
Germany - 0.1%    

Porsche Automobil Holding SE (Æ)(Ñ)

   7,250     361  
    

 

 

 
Total Preferred Stocks
(cost $1,531)
     828  
    

 

 

 
Warrants & Rights - 0.3%    
United Kingdom - 0.3%    

DS Smith PLC Class F (Æ)
2012 Rights

   369,050     857  
    

 

 

 
Total Warrants & Rights
(cost $1,013)
     857  
    

 

 

 
Short-Term Investments - 6.1%    
United States - 6.1%    

Russell U.S. Cash Management Fund

   19,709,433 (¥   19,709  
    

 

 

 
Total Short-Term Investments
(cost $19,709)
     19,709  
    

 

 

 
Other Securities - 4.4%    

Russell Investment Funds Liquidating Trust (×)

   645,054 (¥   658  

Russell U.S. Cash Collateral Fund (×)

   13,769,829 (¥   13,770  
    

 

 

 
Total Other Securities
(cost $14,415)
     14,428  
    

 

 

 
Total Investments - 102.3%
(identified cost $330,593)
     333,026  
Other Assets and Liabilities,
Net - (2.3%)
     (7,415
    

 

 

 
Net Assets - 100.0%     325,611  
    

 

 

 

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

 

 

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

 

Non-U.S. Fund 35


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except contract amounts)

 

 

Futures Contracts  Number of
Contracts
  

Notional
Amount

   Expiration
Date
  Unrealized
Appreciation
(Depreciation)
$
 
         
         
Long Positions         

ASX SPI 200 Index Futures (Australia)

   17    AUD     1,724    09/12   (5

CAC 40 Index Futures (France)

   63    EUR     2,011    07/12   97  

DAX Index Futures (Germany)

   10    EUR     1,603    09/12   70  

EURO STOXX 50 Index Futures (EMU)

   165    EUR     3,721    09/12   193  

FTSE 100 Index Futures (UK)

   47    GBP     2,596    09/12   57  

Hang Seng Index Futures (Hong Kong)

   6    HKD     5,835    07/12   14  

S&P TSE 60 Index Futures (Canada)

   18    CAD     2,381    09/12   53  

TOPIX Index Futures (Japan)

   43    JPY     330,669    09/12   229  
         

 

 

 

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

          708  
         

 

 

 

 

Foreign Currency Exchange Contracts 

Counterparty

  Amount
Sold
   Amount
Bought
  Settlement
Date
   Unrealized
Appreciation
(Depreciation)
$
 
           
Barclays Bank PLC   USD    368     AUD    371   09/19/12     9  
Barclays Bank PLC   USD    534     CAD    548   09/19/12     4  
Barclays Bank PLC   USD    1,802     EUR    1,432   09/19/12     11  
Barclays Bank PLC   USD    841     GBP    540   09/19/12     4  
Barclays Bank PLC   USD    886     JPY    70,300   09/19/12     (6
Brown Brothers Harriman & Co.   USD    199     HKD    1,540   09/19/12       
Brown Brothers Harriman & Co.   CAD    19     USD    1,553   07/02/12       
Brown Brothers Harriman & Co.   HKD    22     USD    1,755   07/03/12       
Brown Brothers Harriman & Co.   HKD    2     USD    3   07/05/12       
Citibank   CAD    121     USD    78   07/02/12     1  
Commonwealth Bank of Australia   USD    368     AUD    371   09/19/12     9  
Commonwealth Bank of Australia   USD    533     CAD    548   09/19/12     5  
Commonwealth Bank of Australia   USD    1,803     EUR    1,432   09/19/12     11  
Commonwealth Bank of Australia   USD    840     GBP    540   09/19/12     5  
Commonwealth Bank of Australia   USD    199     HKD    1,540   09/19/12       
Commonwealth Bank of Australia   USD    886     JPY    70,300   09/19/12     (6
Credit Suisse First Boston   USD    499     AUD    500   09/19/12     9  
Credit Suisse First Boston   USD    584     CAD    600   09/19/12     5  
Credit Suisse First Boston   USD    2,766     EUR    2,200   09/19/12     20  
Credit Suisse First Boston   USD    1,091     GBP    700   09/19/12     5  
Credit Suisse First Boston   USD    193     HKD    1,500   09/19/12       
Credit Suisse First Boston   USD    1,245     JPY    100,000   09/19/12     8  
Deutsche Bank AG   USD    368     AUD    371   09/19/12     9  
Deutsche Bank AG   USD    533     CAD    548   09/19/12     4  
Deutsche Bank AG   USD    1,802     EUR    1,432   09/19/12     11  
Deutsche Bank AG   USD    117     GBP    75   07/03/12       
Deutsche Bank AG   USD    841     GBP    540   09/19/12     5  
Deutsche Bank AG   USD    887     JPY    70,300   09/19/12     (6
Deutsche Bank AG   USD    184     NOK    1,097   07/03/12       
Deutsche Bank AG   GBP    1,632     USD    2,556   07/05/12       
HSBC Bank PLC   USD    368     AUD    371   09/19/12     9  
HSBC Bank PLC   USD    533     CAD    548   09/19/12     4  
HSBC Bank PLC   USD    1,803     EUR    1,432   09/19/12     11  
HSBC Bank PLC   USD    841     GBP    540   09/19/12     5  
HSBC Bank PLC   USD    199     HKD    1,540   09/19/12       
HSBC Bank PLC   USD    886     JPY    70,300   09/19/12     (6
JPMorgan Chase Bank   USD    367     AUD    371   09/19/12     10  
JPMorgan Chase Bank   USD    533     CAD    548   09/19/12     4  
JPMorgan Chase Bank   USD    1,802     EUR    1,432   09/19/12     11  
JPMorgan Chase Bank   USD    840     GBP    540   09/19/12     5  
JPMorgan Chase Bank   USD    887     JPY    70,300   09/19/12     (6
JPMorgan Chase Bank   AUD    600     USD    600   09/19/12     (10

 

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

 

 36   Non-U.S. Fund


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts 

Counterparty

  Amount
Sold
   Amount
Bought
  Settlement
Date
   Unrealized
Appreciation
(Depreciation)
$
 
JPMorgan Chase Bank   CAD    800     USD    781   09/19/12     (3
JPMorgan Chase Bank   EUR    2,300     USD    2,913   09/19/12       
JPMorgan Chase Bank   GBP    800     USD    1,255   09/19/12     2  
JPMorgan Chase Bank   HKD    1,800     USD    232   09/19/12       
JPMorgan Chase Bank   JPY    100,000     USD    1,273   09/19/12     20  
Royal Bank of Canada   USD    199     HKD    1,540   09/19/12       
State Street Bank & Trust Co.   USD    98     GBP    63   07/03/12     1  
State Street Bank & Trust Co.   USD    69     NOK    417   07/03/12     1  
State Street Bank & Trust Co.   AUD    50     USD    50   09/19/12     (1
State Street Bank & Trust Co.   EUR    100     USD    126   09/19/12     (1
State Street Bank & Trust Co.   EUR    600     USD    747   09/19/12     (12
State Street Bank & Trust Co.   GBP    100     USD    155   09/19/12     (1
State Street Bank & Trust Co.   HKD    3,887     USD    49   07/02/12       
State Street Bank & Trust Co.   HKD    100     USD    13   09/19/12       
State Street Bank & Trust Co.   JPY    1,408     USD    18   07/02/12       
State Street Bank & Trust Co.   JPY    30,000     USD    378   09/19/12     2  
State Street Bank & Trust Co.   NOK    10,134     USD    1,699   07/02/12     (4
           

 

 

 

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

  

             158  
           

 

 

 

 

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

 

Non-U.S. Fund 37


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Presentation of Portfolio Holdings — June 30, 2012 (Unaudited)

Amounts in thousands

 

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

Common Stocks

         

Australia

  $   $2,675    $    $2,675     0.8  

Belgium

       1,196          1,196     0.4  

Bermuda

   3,840    2,182          6,022     1.9  

Brazil

   4,422              4,422     1.4  

Canada

   4,675              4,675     1.4  

Cayman Islands

   1,893    1,159          3,052     0.9  

China

       1,322          1,322     0.4  

Czech Republic

       588          588     0.2  

Denmark

       3,046          3,046     0.9  

France

       24,618          24,618     7.6  

Germany

       25,848          25,848     7.9  

Hong Kong

       4,719          4,719     1.4  

India

   1,386              1,386     0.4  

Ireland

       704          704     0.2  

Israel

   3,422              3,422     1.1  

Italy

       7,231          7,231     2.2  

Japan

       46,598          46,598     14.3  

Jersey

   1,444    3,619          5,063     1.6  

Luxembourg

       763          763     0.2  

Netherlands

       18,198          18,198     5.6  

Norway

       5,591          5,591     1.7  

Russia

       1,528          1,528     0.5  

Singapore

       6,478          6,478     2.0  

South Africa

       1,381          1,381     0.4  

South Korea

       5,346          5,346     1.6  

Spain

       4,206          4,206     1.3  

Sweden

       1,908          1,908     0.6  

Switzerland

   2,670    25,581          28,251     8.7  

Taiwan

   1,256    3,412          4,668     1.4  

United Kingdom

   300    68,168          68,468     21.0  

United States

   3,831              3,831     1.2  

Preferred Stocks

   467    361          828     0.3  

Warrants & Rights

       857          857     0.3  

Short-Term Investments

       19,709          19,709     6.1  

Other Securities

       14,428          14,428     4.4  
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments

   29,606    303,420          333,026     102.3  
  

 

 

  

 

 

   

 

 

   

 

 

   

Other Assets and Liabilities, Net

          (2.3
         

 

 

 
          100.0  
         

 

 

 

Other Financial Instruments

         

Futures Contracts

   708              708     0.2  

Foreign Currency Exchange Contracts

   (1  159          158     
  

 

 

  

 

 

   

 

 

   

 

 

   

Total Other Financial Instruments**

  $707   $159    $    $866    
  

 

 

  

 

 

   

 

 

   

 

 

   

 

* Less than .05% of net assets.
** Other financial instruments reflected, such as futures, forwards, interest rate swaps and credit default swaps 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.

There were no significant transfers in and out of Levels 1, 2 and 3 during the period ended June 30, 2012.

 

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

 

 38   Non-U.S. Fund


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Russell Investment Funds

Non-U.S. Fund

Fair Value of Derivative Instruments — June 30, 2012 (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

  $    $220  

Daily variation margin on futures contracts*

   713       
  

 

 

   

 

 

 

Total

  $713    $220  
  

 

 

   

 

 

 

Location: Statement of Assets and Liabilities - Liabilities

    

Unrealized depreciation on foreign currency exchange contracts

  $    $62  

Daily variation margin on futures contracts*

   5       
  

 

 

   

 

 

 

Total

  $5    $62  
  

 

 

   

 

 

 

 

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

Location: Statement of Operations - Net realized gain (loss)

    

Futures contracts

  $447    $  

Foreign currency-related transactions

        (656
  

 

 

   

 

 

 

Total

  $447    $(656
  

 

 

   

 

 

 

Location: Statement of Operations - Net change in unrealized appreciation (depreciation)

    

Futures contracts

  $615    $  

Foreign currency-related transactions

        552  
  

 

 

   

 

 

 

Total

  $615    $552  
  

 

 

   

 

 

 

 

*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 and 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.

 

Non-U.S. Fund 39


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Statement of Assets and Liabilities — June 30, 2012 (Unaudited)

 

Amounts in thousands     
  

Assets

  

Investments, at identified cost

  $330,593 

Investments, at market**, ***

   333,026 

Cash (restricted)

   1,800 

Foreign currency holdings*

   2,082 

Unrealized appreciation on foreign currency exchange contracts

   220 

Receivables:

  

Dividends and interest

   828 

Dividends from affiliated Russell funds

   3 

Investments sold

   2,640 

Fund shares sold

   1 

Foreign taxes recoverable

   232 

Daily variation margin on futures contracts

   589 

Other receivable

   5 

Prepaid expenses

   4 
  

 

 

 

Total assets

   341,430 
  

 

 

 

Liabilities

  

Payables:

  

Investments purchased

   790 

Fund shares redeemed

   235 

Accrued fees to affiliates

   232 

Other accrued expenses

   85 

Unrealized depreciation on foreign currency exchange contracts

   62 

Payable upon return of securities loaned

   14,415 
  

 

 

 

Total liabilities

   15,819 
  

 

 

 
  

Net Assets

  $325,611 
  

 

 

 

 

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

 

 40   Non-U.S. Fund


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Statement of Assets and Liabilities, continued — June 30, 2012 (Unaudited)

 

Amounts in thousands     
  

Net Assets Consist of:

  

Undistributed (overdistributed) net investment income

  $5,508 

Accumulated net realized gain (loss)

   (98,896

Unrealized appreciation (depreciation) on:

  

Investments

   2,433 

Futures contracts

   708 

Foreign currency-related transactions

   164 

Other investments

   5 

Shares of beneficial interest

   362 

Additional paid-in capital

   415,327 
  

 

 

 

Net Assets

  $325,611 
  

 

 

 

Net Asset Value, offering and redemption price per share:

  

Net asset value per share: (a)

  $9.00  

Net assets

  $325,610,725 

Shares outstanding ($.01 par value)

   36,161,514 

Amounts in thousands

  
  

*       Foreign currency holdings - cost

  $2,042 

**     Securities on loan included in investments

  $14,786 

***   Investments in affiliates, Russell U.S. Cash Management Fund, Russell Investment Funds Liquidating Trust and Russell U.S. Cash Collateral Fund

  $34,137 

 

(a)Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

 

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

 

Non-U.S. Fund 41


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Statement of Operations — For the Period Ended June 30, 2012 (Unaudited)

 

Amounts in thousands     
  

Investment Income

  

Dividends

  $7,118  

Dividends from affiliated Russell funds

   15  

Securities lending income

   209  

Less foreign taxes withheld

   (621
  

 

 

 

Total investment income

   6,721  
  

 

 

 

Expenses

  

Advisory fees

   1,540  

Administrative fees

   86  

Custodian fees

   125  

Transfer agent fees

   8  

Professional fees

   34  

Trustees’ fees

   4  

Miscellaneous

   2  
  

 

 

 

Expenses before reductions

   1,799  

Expense reductions

   (97
  

 

 

 

Net expenses

   1,702  
  

 

 

 

Net investment income (loss)

   5,019  
  

 

 

 

Net Realized and Unrealized Gain (Loss)

  

Net realized gain (loss) on:

  

Investments

   (957

Futures contracts

   447  

Foreign currency-related transactions

   (964
  

 

 

 

Net realized gain (loss)

   (1,474
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

  

Investments

   9,031  

Futures contracts

   615  

Foreign currency-related transactions

   571  

Other investments

   (2
  

 

 

 

Net change in unrealized appreciation (depreciation)

   10,215  
  

 

 

 

Net realized and unrealized gain (loss)

   8,741  
  

 

 

 

Net Increase (Decrease) in Net Assets from Operations

  $13,760  
  

 

 

 

 

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

 

 42   Non-U.S. Fund


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Statements of Changes in Net Assets

 

Amounts in thousands Period Ended
June 30, 2012
(Unaudited)
  Fiscal Year
Ended
December 31, 2011
 
  

Increase (Decrease) in Net Assets

  

Operations

  

Net investment income (loss)

 $5,019   $6,345  

Net realized gain (loss)

  (1,474  4,733  

Net change in unrealized appreciation (depreciation)

  10,215    (58,506
 

 

 

  

 

 

 

Net increase (decrease) in net assets from operations

  13,760    (47,428
 

 

 

  

 

 

 

Distributions

  

From net investment income

  (3,601  (6,022
 

 

 

  

 

 

 

Net decrease in net assets from distributions

  (3,601  (6,022
 

 

 

  

 

 

 

Share Transactions

  

Net increase (decrease) in net assets from share transactions

  (14,126  16,122  

Fund Reimbursements

      36  
 

 

 

  

 

 

 

Total Net Increase (Decrease) in Net Assets

  (3,967  (37,292

Net Assets

  

Beginning of period

  329,578    366,870  
 

 

 

  

 

 

 

End of period

 $325,611   $329,578  
 

 

 

  

 

 

 

Undistributed (overdistributed) net investment income included in net assets

 $5,508   $4,090  

 

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

 

Non-U.S. Fund 43


Table of Contents

Russell Investment Funds

Non-U.S. Fund

Financial Highlights

For a Share Outstanding Throughout the Period

 

    
$
Net Asset Value,
Beginning of
Period
   $
Net Investment
Income (Loss)
(a)(b)
   $
Net Realized
and Unrealized
Gain (Loss)
   $
Total from
Investment
Operations
   $
Distributions
from Net
Investment Income
   $
Distributions
from Net
Realized Gain
 

June 30, 2012(1)

   8.75     .13     .22     .35     (.10     

December 31, 2011

   10.21     .17     (1.46   (1.29   (.17     

December 31, 2010

   9.25     .12     .92     1.04     (.08     

December 31, 2009

   7.48     .12     1.88     2.00     (.23     

December 31, 2008

   13.20     .21     (5.83   (5.62       (.10

December 31, 2007

   15.01     .25     1.14     1.39     (.38   (2.82

 

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

 

 44   Non-U.S. Fund


Table of Contents
$
Total
Distributions
  $
Net Asset Value,
End of
Period
  %
Total
Return
(d)(f)
  $
Net Assets,
End of Period
(000)
  %
Ratio of Expenses
to Average
Net Assets,
Gross
(e)
  %
Ratio of Expenses
to Average
Net Assets,
Net
(b)(e)
  %
Ratio of Net
Investment Income
to Average Net
Assets
(b)(e)
  % Portfolio
Turnover Rate
(d)
 
 (.10  9.00    3.87    325,611   1.05    .99    2.93    31 
 (.17  8.75    (12.88  329,578   1.10    1.04    1.74    49 
 (.08  10.21    11.42    366,870   1.12    1.06    1.30    49 
 (.23  9.25    27.33    322,145   1.12    1.04    1.56    133 
 (.10  7.48    (42.79  255,750   1.21    1.15    2.01    123 
 (3.20  13.20    10.12    431,686   1.18    1.15    1.70    106 

 

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

 

Non-U.S. Fund 45


Table of Contents

Russell Investment Funds

Core Bond Fund

Shareholder Expense Example — June 30, 2012 (Unaudited)

 

 

 

Fund Expenses

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

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory 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, 2012 to June 30, 2012.

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, 2012

  $1,000.00    $1,000.00  

Ending Account Value

June 30, 2012

  $1,043.80    $1,021.63  

Expenses Paid During Period*

  $3.30    $3.27  

 

*Expenses are equal to the Fund’s annualized expense ratio of 0.65% (representing the six month period annualized), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). May reflect amounts waived, reimbursed and/or other credits. Without any waivers, reimbursements and/or other credits, expenses would have been higher.
 

 

 46   Core Bond Fund


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      
Long-Term Investments - 79.2%      
Asset-Backed Securities - 5.7%      

Access Group, Inc.
Series 2008-1 Class A
1.766% due 10/27/25 (Ê)

   626       631  

ACE Securities Corp.
Series 2005-SD3 Class A
0.645% due 08/25/45 (Ê)

   46       45  

Ally Master Owner Trust
Series 2011-3 Class A2
1.810% due 05/15/16

   600       609  

Series 2012-1 Class A2
1.440% due 02/15/17

   445       448  

AmeriCredit Automobile Receivables Trust
Series 2010-1 Class B
3.720% due 11/17/14

   430       436  

Series 2010-4 Class B
1.990% due 10/08/15

   220       222  

Series 2011-2 Class A3
1.610% due 10/08/15

   240       242  

Series 2011-3 Class B
2.280% due 06/08/16

   450       460  

Series 2012-3 Class A1
0.361% due 07/08/13

   1,290       1,289  

Ameriquest Mortgage Securities, Inc.
Series 2004-R10 Class A5
0.635% due 11/25/34 (Ê)

            

Asset Backed Securities Corp. Home Equity
Series 2005-HE5 Class M3
0.725% due 06/25/35 (Ê)

   1,050       772  

Series 2006-HE5 Class A5
0.485% due 07/25/36 (Ê)

   1,200       428  

Bayview Financial Acquisition Trust
Series 2006-A Class 1A3
5.865% due 02/28/41

   190       188  

Brazos Higher Education Authority
Series 2010-1 Class A2
1.667% due 02/25/35 (Ê)

   500       475  

Series 2011-2 Class A3
1.466% due 10/27/36 (Ê)

   210       200  

Carrington Mortgage Loan Trust
Series 2006-NC1 Class A4
0.555% due 01/25/36 (Ê)

   1,900       751  

Chesapeake Funding LLC
Series 2012-1A Class A
0.990% due 11/07/23 (Ê)(Þ)

   925       925  

CIT Education Loan Trust
Series 2007-1 Class A
0.558% due 03/25/42 (Ê)(Þ)

   504       460  

Citigroup Mortgage Loan Trust, Inc.
Series 2007-WFH1 Class A3
0.395% due 01/25/37 (Ê)

   1,272       1,086  

Series 2007-WFH1 Class A4
0.445% due 01/25/37 (Ê)

   934       437  

Series 2007-WFH4 Class A2B
1.295% due 07/25/37 (Ê)

   1,290       795  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Conseco Financial Corp.
Series 1996-10 Class M1
7.240% due 11/15/28

   700       767  

Series 1999-2 Class A5
6.680% due 12/01/30

   499       503  

Countrywide Asset-Backed Certificates
Series 2006-3 Class 2A2
0.425% due 06/25/36 (Ê)

   150       137  

Series 2006-11 Class 1AF3
5.688% due 09/25/46

   128       85  

Series 2006-13 Class 1AF3
5.944% due 01/25/37

   263       172  

Series 2007-4 Class A2
5.530% due 04/25/47

   245       219  

EFS Volunteer LLC
Series 2010-1 Class A2
1.316% due 10/25/35 (Ê)(Þ)

   500       475  

Fannie Mae Grantor Trust
Series 2003-T4 Class 2A5
5.407% due 09/26/33

   48       48  

Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2000-30 Class A5
6.642% due 12/25/30

   33       36  

Ford Credit Floorplan Master Owner Trust
Series 2010-5 Class A1
1.500% due 09/15/15

   275       278  

HSBC Home Equity Loan Trust
Series 2005-1 Class A
0.534% due 01/20/34 (Ê)

   137       126  

HSI Asset Securitization Corp. Trust
Series 2007-OPT1 Class 2A2
0.355% due 12/25/36 (Ê)

   1,650       991  

IXIS Real Estate Capital Trust
Series 2005-HE1 Class M2
0.980% due 06/25/35 (Ê)

   124       123  

JPMorgan Mortgage Acquisition Corp.
Series 2006-HE1 Class A4
0.535% due 01/25/36 (Ê)

   2,350       881  

Series 2007-HE1 Class AF6
5.122% due 03/25/47

   1,912       1,138  

Lehman XS Trust
Series 2006-9 Class A1B
0.405% due 05/25/46 (Ê)

   195       132  

Series 2006-13 Class 1A2
0.415% due 09/25/36 (Ê)

   186       121  

Series 2006-19 Class A2
0.415% due 12/25/36 (Ê)

   197       129  

Long Beach Mortgage Loan Trust
Series 2004-4 Class 1A1
0.805% due 10/25/34 (Ê)

   5       4  

Series 2004-4 Class M1
1.145% due 10/25/34 (Ê)

   1,200       975  

Merrill Lynch First Franklin Mortgage Loan Trust
Series 2007-1 Class A2B
0.415% due 04/25/37 (Ê)

   136       60  
 

 

Core Bond Fund 47


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Series 2007-4 Class 2A2
0.365% due 07/25/37 (Ê)

   1,037       582  

Montana Higher Education Student Assistance Corp.
Series 2012-1 Class A3
1.294% due 07/20/43 (Ê)

   650       603  

Morgan Stanley ABS Capital I
Series 2006-HE1 Class A4
0.535% due 01/25/36 (Ê)

   1,950       960  

Series 2007-HE2 Class A2B
0.335% due 01/25/37 (Ê)

   1,043       370  

Series 2007-HE5 Class A2C
0.495% due 03/25/37 (Ê)

   800       276  

Series 2007-HE5 Class A2D
0.585% due 03/25/37 (Ê)

   800       280  

Northstar Education Finance, Inc.
Series 2007-1 Class A1
0.566% due 04/28/30 (Ê)

   475       442  

Series 2007-1 Class A3
0.526% due 01/29/46 (Ê)

   500       453  

Popular ABS Mortgage Pass-Through Trust
Series 2005-6 Class A3
5.284% due 01/25/36

   105       71  

Series 2006-C Class A4
0.495% due 07/25/36 (Ê)

   1,480       871  

Series 2006-D Class A3
0.505% due 11/25/46 (Ê)

   1,500       794  

Renaissance Home Equity Loan Trust
Series 2005-2 Class AF4
4.934% due 08/25/35

   85       63  

Series 2006-1 Class AF6
5.746% due 05/25/36

   165       105  

Series 2007-1 Class AF2
5.512% due 04/25/37

   420       165  

Series 2007-2 Class AF2
5.675% due 06/25/37

   125       51  

Residential Asset Mortgage Products, Inc.
Series 2003-RS9 Class AI6A
6.110% due 10/25/33

   378       364  

Series 2003-RS11 Class AI6A
5.980% due 12/25/33

   116       115  

Residential Asset Securities Corp.
Series 2003-KS4 Class AIIB
0.825% due 06/25/33 (Ê)

   28       16  

Santander Drive Auto Receivables Trust
Series 2011-2 Class B
2.660% due 01/15/16

   180       183  

Series 2011-3 Class B
2.500% due 12/15/15

   530       537  

Series 2012-1 Class B
2.720% due 05/16/16

   340       346  

Series 2012-2 Class B

2.090% due 08/15/16

   430       433  

Series 2012-4 Class A1

0.432% due 07/15/13

   1,300       1,300  

SG Mortgage Securities Trust
Series 2006-OPT2 Class A3C
0.395% due 10/25/36 (Ê)

   1,500       462  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

SLM Student Loan Trust
Series 2006-5 Class A6B
0.586% due 10/25/40 (Ê)

   490       441  

Series 2008-7 Class A2
0.966% due 10/25/17 (Ê)

   2,480       2,486  

Series 2011-A Class A2
4.370% due 04/17/28 (Þ)

   220       233  

Series 2011-B Class A2
3.740% due 02/15/29 (Þ)

   575       594  

Series 2012-A Class A2
3.830% due 01/17/45 (Þ)

   385       398  

Series 2012-B Class A2
3.480% due 10/15/30 (Þ)

   280       287  

Small Business Administration Participation Certificates
Series 2005-20G Class 1
4.750% due 07/01/25

   517       576  

Soundview Home Equity Loan Trust
Series 2005-1 Class M2
0.995% due 04/25/35 (Ê)

   1,062       1,022  

Series 2005-OPT3 Class A4
0.545% due 11/25/35 (Ê)

   408       382  

Structured Asset Securities Corp.
Series 2006-BC6 Class A2
0.325% due 01/25/37 (Ê)

   199       198  

Washington Mutual Asset-Backed Certificates
Series 2006-HE2 Class A3
0.395% due 05/25/36 (Ê)

   556       273  
      

 

 

 
       35,031  
      

 

 

 
Corporate Bonds and Notes - 15.4%      

ABB Finance USA, Inc.
2.875% due 05/08/22

   175       177  

Ally Financial, Inc.
7.500% due 12/31/13

   1,900       2,014  

4.625% due 06/26/15

   400       402  

7.500% due 09/15/20

   100       112  

Alta Wind Holdings LLC
7.000% due 06/30/35 (Þ)

   118       133  

Alterra USA Holdings, Ltd.
7.200% due 04/14/17 (Þ)

   155       163  

Altria Group, Inc.
9.700% due 11/10/18

   135       187  

10.200% due 02/06/39

   160       260  

American Airlines 2011-2 Class A Pass Through Trust
Series A
8.625% due 10/15/21

   607       637  

American Express Centurion Bank
Series BKN1
6.000% due 09/13/17

   400       472  

American Express Credit Corp.
2.375% due 03/24/17

   275       282  

American International Group, Inc.
4.875% due 09/15/16

   440       467  

5.600% due 10/18/16

   700       761  

5.450% due 05/18/17

   1,000       1,086  
 

 

 48   Core Bond Fund


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Ameriprise Financial, Inc.
7.518% due 06/01/66

   210       227  

AmerisourceBergen Corp.
5.875% due 09/15/15

   155       176  

Amgen, Inc.
2.125% due 05/15/17

   430       435  

3.625% due 05/15/22

   280       290  

6.900% due 06/01/38

   1,000       1,273  

Anadarko Petroleum Corp.
6.375% due 09/15/17

   510       592  

6.450% due 09/15/36

   285       329  

Anheuser-Busch Cos., Inc.
5.500% due 01/15/18

   215       255  

Apache Corp.
3.250% due 04/15/22

   255       266  

Arch Coal, Inc.
8.750% due 08/01/16 (Ñ)

   70       67  

7.000% due 06/15/19 (Ñ)

   350       296  

AT&T Corp.
8.000% due 11/15/31

   175       259  

AT&T, Inc.
2.950% due 05/15/16

   155       164  

6.300% due 01/15/38

   900       1,121  

Bank of America Corp.
7.375% due 05/15/14

   710       764  

4.750% due 08/01/15

   320       332  

5.625% due 10/14/16

   450       478  

6.000% due 09/01/17

   335       362  

5.750% due 12/01/17

   140       149  

Bank of America NA
Series BKNT
0.748% due 06/15/16 (Ê)

   600       530  

6.100% due 06/15/17

   775       829  

BB&T Corp.
2.150% due 03/22/17

   300       305  

Bear Stearns Cos. LLC (The)
5.550% due 01/22/17

   180       194  

7.250% due 02/01/18

   195       233  

Berkshire Hathaway Finance Corp.
1.600% due 05/15/17

   220       222  

Berkshire Hathaway, Inc.
3.750% due 08/15/21 (Ñ)

   250       267  

Boston Scientific Corp.
4.500% due 01/15/15

   295       314  

Braskem America Finance Co.
7.125% due 07/22/41 (Þ)

   460       459  

Burlington Northern Santa Fe LLC
6.875% due 12/01/27

   25       31  

6.750% due 03/15/29

   10       12  

Calpine Construction Finance Co., LP and CCFC Finance Corp.
8.000% due 06/01/16 (Þ)

   655       707  

Capital One Financial Corp.
2.150% due 03/23/15

   300       302  

CCO Holdings LLC / CCO Holdings Capital Corp.
7.000% due 01/15/19

   460       497  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Cellco Partnership / Verizon Wireless Capital LLC
7.375% due 11/15/13

   235       255  

CenterPoint Energy Resources Corp.
6.125% due 11/01/17

   50       59  

CF Industries, Inc.
6.875% due 05/01/18

   180       214  

Chase Capital III
Series C
1.017% due 03/01/27 (Ê)

   295       214  

CHS/Community Health Systems, Inc.
8.875% due 07/15/15

   166       170  

8.000% due 11/15/19

   180       192  

Cigna Corp.
5.375% due 02/15/42

   200       213  

CIT Group, Inc.
7.000% due 05/02/17 (Ñ)(Þ)

   154       154  

6.625% due 04/01/18 (Ñ)(Þ)

   390       420  

Citigroup Capital XXI
8.300% due 12/21/57

   500       501  

Citigroup, Inc.
5.850% due 07/02/13

   100       105  

2.467% due 08/13/13 (Ê)

   100       101  

4.700% due 05/29/15

   50       52  

5.850% due 08/02/16 (Ñ)

   220       239  

4.450% due 01/10/17

   1,005       1,053  

6.000% due 08/15/17 (Ñ)

   850       931  

6.125% due 11/21/17

   405       449  

6.125% due 08/25/36

   300       295  

8.125% due 07/15/39

   450       601  

5.875% due 01/30/42 (Ñ)

   450       491  

Comcast Corp.
5.700% due 05/15/18

   300       354  

Commonwealth Edison Co.
5.800% due 03/15/18

   290       350  

Continental Airlines 1999-1
Class A Pass Through Trust
Series 991A
6.545% due 02/02/19

   171       183  

Continental Airlines 2007-1
Class A Pass Through Trust
Series 071A
5.983% due 04/19/22 (Ñ)

   137       148  

Continental Airlines 2009-1
Pass Through Trust
Series 09-1
9.000% due 07/08/16

   221       253  

Credit Suisse USA, Inc.
5.500% due 08/15/13

   45       47  

Crown Castle Towers LLC
3.214% due 08/15/15 (Þ)

   130       132  

CSC Holdings LLC
8.500% due 04/15/14

   460       506  

CVS Caremark Corp.
3.250% due 05/18/15

   295       311  

DCP Midstream Operating, LP
3.250% due 10/01/15

   275       279  
 

 

Core Bond Fund 49


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Delta Air Lines 2002-1
Class G-1 Pass Through Trust
Series 02G1 6.718% due 01/02/23

   113       122  

Devon Energy Corp.
1.875% due 05/15/17

   205       205  

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
3.500% due 03/01/16

   535       564  

Discover Financial Services
5.200% due 04/27/22 (Þ)

   260       272  

Dynegy Roseton / Danskammer Pass Through Trust
Series B
7.670% due 11/08/16

   700       434  

E*Trade Financial Corp.
12.500% due 11/30/17

   235       269  

Ecolab, Inc.
4.350% due 12/08/21

   255       283  

Edison Mission Energy
7.000% due 05/15/17

   675       378  

El Paso LLC Series GMTN
8.050% due 10/15/30

   200       227  

El Paso Natural Gas Co.
7.500% due 11/15/26

   100       122  

El Paso Pipeline Partners Operating Co. LLC
6.500% due 04/01/20

   125       145  

5.000% due 10/01/21

   650       703  

Enterprise Products Operating LLC
5.250% due 01/31/20

   420       481  

Series B
7.034% due 01/15/68

   290       310  

Express Scripts Holding Co.
6.250% due 06/15/14

   285       312  

7.250% due 06/15/19

   235       295  

4.750% due 11/15/21 (Þ)

   155       172  

Farmers Exchange Capital
7.050% due 07/15/28 (Þ)

   845       970  

7.200% due 07/15/48 (Þ)

   300       323  

Fifth Third Bancorp
8.250% due 03/01/38

   1,100       1,493  

Ford Motor Credit Co. LLC
3.984% due 06/15/16 (Þ)

   600       618  

FPL Energy Wind Funding LLC
6.876% due 06/27/17 (Þ)

   131       108  

Frontier Communications Corp.
7.875% due 04/15/15 (Ñ)

   450       495  

General Electric Capital Corp.
5.900% due 05/13/14

   350       380  

5.625% due 05/01/18

   230       264  

4.375% due 09/16/20

   300       325  

5.875% due 01/14/38

   850       975  

Series EMTN
0.597% due 03/20/14 (Ê)

   400       392  

6.375% due 11/15/67

   1,900       1,978  

Series GMTN
6.875% due 01/10/39

   350       452  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Series MTNA
0.728% due 09/15/14 (Ê)

   420       415  

6.750% due 03/15/32

   425       526  

General Electric Co.
5.250% due 12/06/17

   340       397  

GenOn REMA LLC
Series B
9.237% due 07/02/17

   343       338  

Genworth Financial, Inc.
6.150% due 11/15/66

   365       210  

Georgia-Pacific LLC
8.875% due 05/15/31

   340       479  

Gilead Sciences, Inc.
4.400% due 12/01/21

   420       464  

Goldman Sachs Group, Inc. (The)
6.000% due 05/01/14

   150       159  

3.625% due 02/07/16

   285       285  

6.250% due 09/01/17

   935       1,016  

6.150% due 04/01/18 (Ñ)

   400       434  

7.500% due 02/15/19

   550       627  

6.000% due 06/15/20

   150       160  

5.750% due 01/24/22

   245       259  

6.750% due 10/01/37

   800       784  

Great Plains Energy, Inc.
5.292% due 06/15/22

   170       183  

Hartford Financial Services Group, Inc.
5.125% due 04/15/22

   150       154  

HCA, Inc.
7.875% due 02/15/20

   450       500  

7.250% due 09/15/20

   250       275  

HCP, Inc.
6.700% due 01/30/18

   425       493  

Health Care REIT, Inc.
4.700% due 09/15/17

   400       423  

4.950% due 01/15/21

   300       315  

5.250% due 01/15/22

   200       212  

6.500% due 03/15/41

   200       214  

Healthcare Realty Trust, Inc.
6.500% due 01/17/17

   700       765  

HealthSouth Corp.
10.750% due 06/15/16

   1,156,000       979  

Hewlett-Packard Co.
2.600% due 09/15/17

   275       276  

4.650% due 12/09/21

   380       398  

Historic TW, Inc.
8.050% due 01/15/16

   195       234  

HRPT Properties Trust
5.750% due 02/15/14

   165       169  

HSBC Finance Corp.
6.676% due 01/15/21

   125       135  

HSBC USA, Inc.
2.375% due 02/13/15

   235       238  

Humana, Inc.
6.450% due 06/01/16

   160       182  

8.150% due 06/15/38

   170       230  

Indiantown Cogeneration, LP
Series A-10
9.770% due 12/15/20

   231       241  
 

 

 50   Core Bond Fund


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Intel Corp.
1.950% due 10/01/16

   205       212  

International Lease Finance Corp.
6.500% due 09/01/14 (Þ)

   1,170       1,235  

4.875% due 04/01/15

   350       352  

6.750% due 09/01/16 (Þ)

   100       108  

International Paper Co.
4.750% due 02/15/22

   150       164  

JPMorgan Chase & Co.
5.375% due 01/15/14

   170       180  

3.150% due 07/05/16

   300       309  

6.000% due 01/15/18

   200       230  

4.250% due 10/15/20

   300       315  

5.400% due 01/06/42

   330       362  

Series 1
7.900% due 04/29/49 (Æ)(ƒ)

   220       241  

JPMorgan Chase Bank NA
Series BKNT
5.875% due 06/13/16

   70       77  

6.000% due 10/01/17

   945       1,058  

JPMorgan Chase Capital XIII
Series M
1.420% due 09/30/34 (Ê)

   480       362  

JPMorgan Chase Capital XXI
Series U
1.416% due 02/02/37 (Ê)

   335       225  

JPMorgan Chase Capital XXIII
1.467% due 05/15/47 (Ê)

   545       369  

Kraft Foods, Inc.
1.344% due 07/10/13 (Ê)

   310       311  

4.125% due 02/09/16

   245       267  

6.125% due 02/01/18

   200       240  

6.500% due 02/09/40

   305       392  

Lorillard Tobacco Co.
6.875% due 05/01/20

   370       438  

Lowe’s Cos., Inc.
3.120% due 04/15/22

   215       220  

Manufacturers & Traders Trust Co.
5.585% due 12/28/20

   84       83  

MassMutual Global Funding II
2.000% due 04/05/17 (Þ)

   305       307  

Merrill Lynch & Co., Inc.
6.400% due 08/28/17

   720       784  

6.875% due 04/25/18

   500       559  

MetLife, Inc.
6.400% due 12/15/36

   100       98  

10.750% due 08/01/39

   275       384  

Metropolitan Life Global Funding I
5.125% due 06/10/14 (Þ)

   200       214  

3.125% due 01/11/16 (Þ)

   345       361  

Mirant Mid Atlantic Pass Through Trust B
Series B
9.125% due 06/30/17

   362       373  

Morgan Stanley
0.947% due 10/15/15 (Ê)

   655       584  

0.916% due 10/18/16 (Ê)

   435       379  

5.550% due 04/27/17

   425       429  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

6.250% due 08/28/17

   600       619  

6.625% due 04/01/18

   365       382  

5.625% due 09/23/19

   275       272  

Series GMTN
5.450% due 01/09/17

   225       227  

National City Bank
Series BKNT
0.838% due 06/07/17 (Ê)

   700       655  

National Rural Utilities Cooperative Finance Corp.
1.900% due 11/01/15

   145       149  

NB Capital Trust IV
8.250% due 04/15/27

   215       220  

New Cingular Wireless Services, Inc.
8.750% due 03/01/31

   105       160  

Newmont Mining Corp.
4.875% due 03/15/42

   245       239  

News America, Inc.
8.250% due 10/17/96

   20       24  

Nextel Communications, Inc.
Series C
5.950% due 03/15/14 (Ñ)

   205       205  

Series E
6.875% due 10/31/13 (Ñ)

   83       83  

NII Capital Corp.
7.625% due 04/01/21

   225       193  

Nisource Finance Corp.
6.400% due 03/15/18

   145       169  

6.125% due 03/01/22

   335       393  

NRG Energy, Inc.
7.625% due 01/15/18

   160       166  

8.500% due 06/15/19 (Ñ)

   155       162  

7.875% due 05/15/21 (Ñ)

   125       126  

Occidental Petroleum Corp.
1.500% due 02/15/18

   65       65  

2.700% due 02/15/23

   260       262  

Oncor Electric Delivery Co. LLC
6.800% due 09/01/18

   550       657  

O’Reilly Automotive, Inc.
4.625% due 09/15/21

   255       266  

Pacific Bell Telephone Co.
7.375% due 07/15/43

   250       267  

Panhandle Eastern Pipeline Co., LP
8.125% due 06/01/19

   450       558  

PC Financial Partnership
5.000% due 11/15/14

   220       238  

Petrohawk Energy Corp.
7.250% due 08/15/18

   230       259  

Philip Morris International, Inc.
5.650% due 05/16/18

   250       302  

Pioneer Natural Resources Co.
3.950% due 07/15/22

   130       130  

PNC Funding Corp.
3.300% due 03/08/22

   285       291  

Progress Energy, Inc.
5.625% due 01/15/16

   40       46  

Prudential Holdings LLC
8.695% due 12/18/23 (Þ)

   550       679  
 

 

Core Bond Fund 51


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Public Service Co. of New Mexico
7.950% due 05/15/18

   260       311  

QVC, Inc.
7.500% due 10/01/19 (Þ)

   260       289  

Qwest Communications International, Inc.
8.000% due 10/01/15

   365       385  

Rock-Tenn Co.
4.450% due 03/01/19 (Þ)

   185       190  

Sabine Pass LNG, LP
7.250% due 11/30/13

   780       807  

7.500% due 11/30/16

   65       68  

Series 144a
7.500% due 11/30/16 (Þ)

   380       384  

Sempra Energy
2.000% due 03/15/14

   255       259  

Simon Property Group, LP
10.350% due 04/01/19

   160       224  

SLM Corp.
6.250% due 01/25/16

   1,800       1,890  

SMART Trust
Series 2011-2USA Class A4A
2.310% due 04/14/17 (Þ)

   465       472  

Series 2012-1USA Class A4A
2.010% due 12/14/17 (Þ)

   310       311  

South Carolina Electric & Gas Co.
6.500% due 11/01/18

   150       188  

Southern Natural Gas Co. LLC / Southern Natural Issuing Corp.
4.400% due 06/15/21

   385       409  

Southern Union Co.
3.483% due 11/01/66 (Ê)

   1,380       1,123  

Springleaf Finance Corp.
6.900% due 12/15/17 (Ñ)

   300       239  

State Street Capital Trust III
5.458% due 01/29/49 (Ê)(ƒ)

   200       201  

Symetra Financial Corp.
8.300% due 10/15/37 (Þ)

   250       244  

TD Ameritrade Holding Corp.
4.150% due 12/01/14

   225       238  

Tenet Healthcare Corp.
10.000% due 05/01/18 (Ñ)

   400       458  

Tennessee Gas Pipeline Co. LLC
8.000% due 02/01/16 (Ñ)

   200       235  

8.375% due 06/15/32

   190       249  

Textron, Inc.
6.200% due 03/15/15

   265       291  

Time Warner, Inc.
5.875% due 11/15/16

   400       468  

Timken Co.
6.000% due 09/15/14

   150       163  

UAL 2009-1 Pass Through Trust
Series 09-1
10.400% due 11/01/16

   73       83  

Union Pacific Corp.
4.163% due 07/15/22

   349       389  

UnitedHealth Group, Inc.
6.000% due 06/15/17

   3       4  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Verizon Communications, Inc.
3.000% due 04/01/16

   255       271  

Wachovia Capital Trust III
5.570% due 03/29/49 (Ê)(ƒ)

   240       229  

Wachovia Corp.
5.625% due 10/15/16

   100       113  

5.750% due 02/01/18

   200       237  

Watson Pharmaceuticals, Inc.
5.000% due 08/15/14

   275       292  

WEA Finance LLC / WT Finance Aust Pty, Ltd.
7.500% due 06/02/14 (Þ)

   205       224  

6.750% due 09/02/19 (Þ)

   95       112  

WellPoint, Inc.
3.125% due 05/15/22

   325       328  

Wells Fargo & Co.
Series K
7.980% due 03/29/49 (ƒ)(Ñ)

   3,300       3,622  

Weyerhaeuser Co.
7.375% due 10/01/19

   125       148  

Williams Cos., Inc. (The)
7.875% due 09/01/21

   161       203  

8.750% due 03/15/32

   108       147  

Williams Partners, LP / Williams Partners Finance Corp.
7.250% due 02/01/17

   260       312  

Willis NA, Inc.
7.000% due 09/29/19

   195       226  

ZFS Finance USA Trust II
6.450% due 12/15/65 (Þ)

   730       730  
      

 

 

 
       94,850  
      

 

 

 
International Debt - 5.3%      

Abbey National Treasury Services PLC
3.875% due 11/10/14 (Þ)

   870       857  

AK Transneft OJSC Via TransCapitalInvest, Ltd.
8.700% due 08/07/18 (Þ)

   100       125  

Anglo American Capital PLC
2.625% due 04/03/17 (Þ)

   330       329  

ANZ National International, Ltd.
6.200% due 07/19/13 (Þ)

   600       629  

ArcelorMittal
4.500% due 02/25/17

   220       217  

6.250% due 02/25/22

   245       240  

AWAS Aviation Capital, Ltd.
7.000% due 10/17/16 (Þ)

   312       323  

Banco Santander Brazil SA
2.568% due 03/18/14 (Ê)(Þ)

   200       192  

Bank of Montreal
2.850% due 06/09/15 (Ñ)(Þ)

   100       106  

2.500% due 01/11/17

   170       176  

Bank of New York Mellon SA Institucion de Banca Multiple
9.625% due 05/02/21 (Þ)

   197       177  

BBVA Bancomer SA
6.500% due 03/10/21 (Þ)

   200       202  

BM&FBovespa SA
5.500% due 07/16/20 (Þ)

   100       106  
 

 

 52   Core Bond Fund


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

BNP Paribas SA
5.186% due 06/29/49 (ƒ)(Þ)

   300       258  

Braskem Finance, Ltd.
5.750% due 04/15/21 (Ñ)(Þ)

   300       308  

British Telecommunications PLC
2.000% due 06/22/15

   230       233  

Caisse Centrale Desjardins du Quebec
2.650% due 09/16/15 (Þ)

   410       424  

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands
3.875% due 02/08/22

   380       387  

Corp. Andina de Fomento
4.375% due 06/15/22

   127       130  

Corp. Nacional del Cobre de Chile
7.500% due 01/15/19 (Þ)

   200       253  

Credit Suisse
6.000% due 02/15/18 (Ñ)

   770       824  

CSN Islands XI Corp.
6.875% due 09/21/19 (Þ)

   200       218  

Dexia Credit Local SA
0.946% due 04/29/14 (Ê)(Þ)

   500       470  

Digicel Group, Ltd.
8.875% due 01/15/15 (Þ)

   185       187  

9.125% due 01/15/15 (Þ)

   425       429  

Series REGS
8.875% due 01/15/15

   80       81  

Eksportfinans ASA
2.375% due 05/25/16

   225       200  

Electricite de France SA
5.500% due 01/26/14 (Ñ)(Þ)

   200       212  

6.500% due 01/26/19 (Ñ)(Þ)

   200       235  

6.950% due 01/26/39 (Þ)

   200       237  

Enel Finance International NV
6.250% due 09/15/17 (Ñ)(Þ)

   300       301  

6.000% due 10/07/39 (Þ)

   175       137  

Export-Import Bank of Korea
5.875% due 01/14/15

   700       765  

Gazprom International SA for Gazprom
Series REGS

      

7.201% due 02/01/20

   39       42  

GlaxoSmithKline Capital PLC
1.500% due 05/08/17

   625       626  

2.850% due 05/08/22

   185       188  

Government of the Cayman Islands
5.950% due 11/24/19 (Þ)

   230       252  

HBOS PLC
Series GMTN
6.750% due 05/21/18 (Þ)

   825       778  

HSBC Bank PLC
3.100% due 05/24/16 (Þ)

   800       826  

HSBC Holdings PLC
6.500% due 05/02/36

   100       110  

6.500% due 09/15/37

   100       111  

Hutchison Whampoa International 11, Ltd.
4.625% due 01/13/22 (Þ)

   375       393  

Indian Oil Corp., Ltd.
4.750% due 01/22/15

   400       410  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

ING Bank NV
1.868% due 06/09/14 (Ê)(Þ)

   300       296  

Intelsat Jackson Holdings SA
8.500% due 11/01/19

   400       443  

Intesa Sanpaolo SpA
2.867% due 02/24/14 (Ê)(Þ)

   200       188  

IPIC GMTN, Ltd.
5.500% due 03/01/22 (Þ)

   125       136  

6.875% due 11/01/41 (Þ)

   325       379  

Koninklijke Philips Electronics NV
3.750% due 03/15/22

   350       363  

Korea Electric Power Corp.
5.125% due 04/23/34 (Þ)

   60       63  

Lloyds Banking Group PLC
5.920% due 12/31/49 (ƒ)(Þ)

   300       180  

6.657% due 12/31/49 (ƒ)(Þ)

   265       175  

Lloyds TSB Bank PLC
4.200% due 03/28/17

   215       222  

Majapahit Holding BV
Series REGS

      

7.750% due 10/17/16

   100       114  

Methanex Corp.
5.250% due 03/01/22

   260       270  

Montpelier Re Holdings, Ltd.
6.125% due 08/15/13

   305       317  

Morgan Stanley
Series GMTN
1.177% due 01/16/17 (Ê)

   200       217  

Nexen, Inc.
7.500% due 07/30/39

   200       233  

Noble Group, Ltd.
6.750% due 01/29/20 (Þ)

   100       97  

Nokia OYJ
5.375% due 05/15/19

   155       122  

Pernod-Ricard SA
2.950% due 01/15/17 (Þ)

   520       526  

5.500% due 01/15/42 (Þ)

   125       128  

Petrobras International Finance Co. - Pifco
3.875% due 01/27/16

   400       413  

7.875% due 03/15/19

   800       974  

5.750% due 01/20/20

   265       290  

Province of Ontario Canada
0.950% due 05/26/15

   1,800       1,809  

Province of Quebec Canada
3.500% due 07/29/20

   200       220  

Qatar Government International Bond
5.750% due 01/20/42 (Þ)

   120       143  

Rabobank Nederland NV
11.000% due 06/29/49 (ƒ)(Þ)

   285       359  

Ralph Lauren Corp.
4.500% due 10/04/13

   125       163  

Ras Laffan Liquefied Natural Gas Co., Ltd. III
5.838% due 09/30/27 (Þ)

   250       275  

Series REGS

      

6.750% due 09/30/19

   300       359  

Resona Bank, Ltd.
5.850% due 09/29/49 (ƒ)(Ñ)(Þ)

   100       103  
 

 

Core Bond Fund 53


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Rio Tinto Finance USA PLC
3.500% due 03/22/22

   195       206  

Royal Bank of Scotland Group PLC
6.990% due 10/29/49 (ƒ)(Þ)

   300       231  

Series 1
9.118% due 03/31/49 (ƒ)

   300       258  

Royal Bank of Scotland PLC (The)
3.250% due 01/11/14

   500       502  

4.875% due 08/25/14 (Þ)

   900       925  

Russian Foreign Bond - Eurobond
4.500% due 04/04/22 (Þ)

   345       361  

RZD Capital, Ltd.
5.739% due 04/03/17

   500       534  

Santander US Debt SA Unipersonal
2.991% due 10/07/13 (Þ)

   400       385  

Sirius International Group, Ltd.
7.506% due 05/29/49 (ƒ)(Þ)

   360       345  

Smurfit Kappa Treasury Funding, Ltd.
7.500% due 11/20/25

   165       165  

Suncor Energy, Inc.
5.950% due 12/01/34

   160       181  

Telefonos de Mexico SAB de CV
5.500% due 01/27/15

   360       394  

Total Capital SA
4.450% due 06/24/20

   260       297  

Transocean, Inc.
5.050% due 12/15/16

   330       358  

6.375% due 12/15/21

   225       257  

7.350% due 12/15/41

   345       417  

Turkiye Garanti Bankasi AS
2.966% due 04/20/16 (Ê)(Þ)

   200       185  

Tyco Electronics Group SA
6.550% due 10/01/17

   240       287  

UBS AG
Series BKNT
5.875% due 12/20/17

   400       447  

5.750% due 04/25/18

   100       111  

Vale Overseas, Ltd.
5.625% due 09/15/19

   400       443  

Vivendi SA
2.400% due 04/10/15 (Å)

   200       198  

Vnesheconombank Via VEB Finance PLC
6.025% due 07/05/22 (Þ)

   280       279  

Volvo Treasury AB
5.950% due 04/01/15 (Þ)

   385       420  

Westpac Banking Corp.
3.585% due 08/14/14 (Þ)

   700       738  

White Nights Gazprom Series REGS

      

10.500% due 03/08/14

   200       223  

10.500% due 03/25/14

   200       224  

Wind Acquisition Finance SA
7.250% due 02/15/18 (Þ)

   200       175  
      

 

 

 
       32,827  
      

 

 

 
Loan Agreements - 0.4%      

Caesars Entertainment Operating
Co., Inc. Term Loan B2
5.495% due 01/28/18 (Ê)

   800       711  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Chrysler Group LLC Term Loan B
6.000% due 05/24/17 (Ê)

   996       1,003  

HCA, Inc. Extended Term Loan B3
3.495% due 05/01/18

   507       492  
      

 

 

 
       2,206  
      

 

 

 
Mortgage-Backed Securities - 32.0%      

ABN Amro Mortgage Corp.
Series 2003-13 Class A3
5.500% due 01/25/34

   40       41  

Adjustable Rate Mortgage Trust
Series 2007-1 Class 1A1
2.963% due 03/25/37 (Ê)

   942       556  

American Home Mortgage Assets LLC
Series 2007-4 Class A2
0.435% due 08/25/37 (Ê)

   557       415  

American Home Mortgage Investment Trust
Series 2004-4 Class 4A
2.728% due 02/25/45 (Ê)

   61       53  

Series 2007-1 Class GA1C
0.435% due 05/25/47 (Ê)

   837       393  

Banc of America Funding Corp.
Series 2006-3 Class 5A8
5.500% due 03/25/36

   444       416  

Series 2006-A Class 4A1
5.377% due 02/20/36 (Ê)

   286       203  

Series 2006-G Class 2A3
0.414% due 07/20/36 (Ê)

   688       681  

Series 2006-I Class 5A1
5.959% due 10/20/46 (Ê)

   1,079       874  

Series 2007-4 Class 3A1
0.615% due 06/25/37 (Ê)

   1,084       634  

Banc of America Large Loan, Inc.
Series 2010-HLTN Class HLTN
1.992% due 11/15/15 (Ê)(Þ)

   94       89  

Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2003-1 Class SBB
5.860% due 03/11/32 (Þ)

   122       125  

Series 2003-1 Class SBC

5.790% due 03/11/32 (Þ)

   101       104  

Series 2005-1 Class A3
4.877% due 11/10/42

   69       69  

Series 2005-1 Class A4
5.246% due 11/10/42

   170       176  

Series 2005-2 Class A4
4.783% due 07/10/43

   8       8  

Series 2005-2 Class A5
4.857% due 07/10/43

   745       811  

Series 2006-1 Class A4
5.372% due 09/10/45

   280       311  

Series 2006-2 Class A4
5.919% due 05/10/45

   200       228  

Series 2006-4 Class A4
5.634% due 07/10/46

   250       282  

Series 2008-1 Class A4
6.395% due 02/10/51

   405       476  
 

 

 54   Core Bond Fund


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Banc of America Mortgage Securities, Inc.
Series 2004-1 Class 5A1
6.500% due 09/25/33

   4       4  

Series 2004-11 Class 2A1
5.750% due 01/25/35

   147       152  

Series 2005-H Class 2A5
2.762% due 09/25/35 (Ê)

   220       172  

BCAP LLC Trust
Series 2011-RR4 Class 7A2
11.287% due 04/26/37 (Þ)

   541       124  

Bear Stearns Adjustable Rate Mortgage Trust
Series 2003-1 Class 6A1
2.634% due 04/25/33 (Ê)

   19       19  

Series 2003-8 Class 4A1
2.889% due 01/25/34 (Ê)

   64       65  

Series 2004-9 Class 22A1
3.174% due 11/25/34 (Ê)

   38       38  

Series 2005-2 Class A1
2.570% due 03/25/35 (Ê)

   592       577  

Series 2007-3 Class 1A1
3.123% due 05/25/47 (Ê)

   231       152  

Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
2.883% due 05/25/35 (Ê)

   150       119  

Series 2005-7 Class 22A1
2.879% due 09/25/35 (Ê)

   355       243  

Series 2005-10 Class 24A1
2.665% due 01/25/36 (Ê)

   336       166  

Series 2006-1 Class 21A2
2.821% due 02/25/36 (Ê)

   419       188  

Bear Stearns Commercial Mortgage Securities
Series 2001-TOP2 Class D
6.940% due 02/15/35 (Þ)

   125       124  

Series 2005-PWR9 Class A4B
4.943% due 09/11/42

   40       42  

Series 2005-T20 Class A4A
5.298% due 10/12/42

   700       780  

Series 2006-PW14 Class A4
5.201% due 12/11/38

   1,600       1,807  

Series 2006-T22 Class A4
5.713% due 04/12/38

   505       572  

Series 2007-PW16 Class A4
5.906% due 06/11/40

   680       778  

BNPP Mortgage Securities LLC
Series 2009-1 Class A1
6.000% due 08/27/37 (Å)

   390       409  

Citicorp Mortgage Securities, Inc.
Series 2006-3 Class 1A9
5.750% due 06/25/36

   219       214  

Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
5.431% due 10/15/49

   135       154  

Series 2007-C6 Class A4
5.889% due 12/10/49

   330       381  

Citigroup Mortgage Loan Trust, Inc.
Series 2005-11 Class A2A
2.580% due 10/25/35 (Ê)

   41       36  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Series 2006-AR7 Class 1A4A
5.183% due 11/25/36 (Ê)

   484       335  

Series 2007-10 Class 2A3A
5.976% due 09/25/37 (Ê)

   441       290  

Series 2007-10 Class 2A4A
6.132% due 09/25/37 (Ê)

   276       198  

Series 2007-AR8 Class 2A1A
3.392% due 07/25/37 (Ê)

   604       394  

Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A4
5.394% due 07/15/44

   340       378  

Commercial Mortgage Asset Trust
Series 1999-C1 Class D
7.350% due 01/17/32

   115       121  

Commercial Mortgage Pass Through Certificates
Series 2003-LB1A Class A2
4.084% due 06/10/38

   240       243  

Series 2006-C8 Class A4
5.306% due 12/10/46

   200       225  

Series 2007-C9 Class A4
5.811% due 12/10/49

   165       192  

Series 2011-THL Class A
3.376% due 06/09/28 (Þ)

   319       325  

Countrywide Alternative Loan Trust
Series 2005-81 Class A1
0.525% due 02/25/37 (Ê)

   282       151  

Series 2005-48T1 Class A6
5.500% due 11/25/35

   897       660  

Series 2006-36T2 Class 1A9
1.145% due 12/25/36 (Ê)

   232       121  

Series 2006-45T1 Class 2A2
6.000% due 02/25/37

   925       634  

Countrywide Home Loan Mortgage Pass Through Trust
Series 2004-22 Class A3
2.620% due 11/25/34 (Ê)

   127       104  

Series 2004-HYB9 Class 1A1
2.709% due 02/20/35 (Ê)

   209       171  

Series 2005-1 Class 2A1
0.535% due 03/25/35 (Ê)

   1,221       665  

Series 2005-3 Class 1A2
0.535% due 04/25/35 (Ê)

   21       13  

Series 2005-HYB9 Class 3A2A

2.595% due 02/20/36 (Ê)

   41       30  

Series 2007-2 Class A2
6.000% due 03/25/37

   2,009       1,656  

Series 2007-4 Class 1A10

6.000% due 05/25/37

   1,784       1,429  

Series 2007-HY5 Class 1A1
5.509% due 09/25/47 (Ê)

   1,378       891  

Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-CKN2 Class C1
6.376% due 04/15/37

   75       75  

Series 2002-CKS4 Class B
5.333% due 11/15/36

   170       170  
 

 

Core Bond Fund 55


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Series 2003-C5 Class D
5.116% due 12/15/36

   215       220  

Series 2005-9 Class 2A1

5.500% due 10/25/35

   284       252  

Series 2005-C2 Class A3
4.691% due 04/15/37

   203       210  

Credit Suisse Mortgage Capital Certificates
Series 2006-C2 Class A3
5.851% due 03/15/39

   100       110  

Series 2007-2 Class 3A4
5.500% due 03/25/37

   977       888  

DBRR Trust
Series 2011-LC2 Class A4A
4.537% due 07/12/44 (Þ)

   340       379  

DBUBS Mortgage Trust
Series 2011-LC2A Class A2
3.386% due 07/10/44 (Þ)

   900       960  

Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2005-AR1 Class 2A3
2.070% due 08/25/35 (Ê)

   465       270  

Series 2007-AR3 Class 2A4
0.595% due 06/25/37 (Ê)

   481       120  

Series 2007-OA1 Class A1
0.395% due 02/25/47 (Ê)

   1,919       879  

Fannie Mae
2.640% due 2017 (Ê)

   19       19  

6.000% due 2017

   16       17  

3.416% due 2020

            

3.584% due 2020

   589       642  

3.632% due 2020

            

3.665% due 2020

   805       882  

3.763% due 2020

   782       861  

4.250% due 2020

   775       871  

5.500% due 2020

   73       80  

5.500% due 2021

   109       120  

3.016% due 2022

   300       314  

5.500% due 2022

   154       169  

4.000% due 2024

   203       216  

3.500% due 2025

   86       91  

4.000% due 2025

   1,299       1,386  

4.500% due 2025

   1,967       2,131  

3.500% due 2026

   3,714       3,994  

6.000% due 2026

   269       296  

3.000% due 2027

   3,007       3,170  

6.000% due 2027

   159       175  

6.000% due 2028

   12       14  

6.000% due 2032

   167       188  

5.000% due 2033

   52       57  

5.500% due 2033

   10       11  

6.000% due 2033

   8       9  

5.000% due 2034

   654       713  

5.500% due 2034

   430       474  

4.500% due 2035

   50       53  

5.000% due 2035

   854       929  

3.593% due 2036 (Ê)

   213       218  

5.000% due 2036

   296       322  

5.500% due 2037

   1,321       1,435  

6.000% due 2037

   14       15  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

5.500% due 2038

   3,293       3,626  

4.500% due 2039

   55       59  

4.000% due 2040

   806       875  

4.500% due 2040

   569       613  

5.500% due 2040

   301       331  

6.000% due 2040

   1,633       1,800  

4.000% due 2041

   2,350       2,527  

4.500% due 2041

   1,464       1,579  

15 Year TBA(Ï)
2.500%

   1,700       1,751  

3.000%

   3,350       3,510  

3.500%

   875       924  

30 Year TBA(Ï)
3.000%

   570       583  

3.500%

   12,045       12,636  

4.000%

   19,680       20,915  

4.500%

   4,500       4,828  

5.000%

   2,650       2,868  

5.500%

   2,830       3,087  

6.000%

   1,700       1,868  

Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33

   104       15  

Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18

   197       12  

Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19

   217       13  

Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35

   395       50  

Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36

   69       9  

Series 2012-55 Class PC
3.500% due 05/25/42

   700       730  

Fannie Mae Grantor Trust
Series 2001-T4 Class A1
7.500% due 07/25/41

   376       452  

Fannie Mae REMICS
Series 1999-56 Class Z
7.000% due 12/18/29

   46       53  

Series 2003-32 Class FH
0.645% due 11/25/22 (Ê)

   55       55  

Series 2003-35 Class FY
0.645% due 05/25/18 (Ê)

   117       117  

Series 2005-110 Class MB
5.500% due 09/25/35

   135       149  

Series 2006-27 Class SH
Interest Only STRIP
6.455% due 04/25/36 (Ê)

   2,206       374  

Series 2007-30 Class AF
0.555% due 04/25/37 (Ê)

   78       78  

Series 2009-39 Class LB
4.500% due 06/25/29

   405       449  

Series 2009-96 Class DB
4.000% due 11/25/29

   575       629  
 

 

 56   Core Bond Fund


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Series 2010-85 Class NJ
4.500% due 08/25/40

   700       753  

Series 2010-95 Class S
Interest Only STRIP
6.355% due 09/25/40 (Ê)

   2,296       407  

Series 2010-112 Class PI
Interest Only STRIP
6.000% due 10/25/40

   2,496       366  

Fannie Mae Whole Loan
Series 2003-W1 Class 1A1
6.244% due 12/25/42

   25       29  

Series 2004-W2 Class 2A2
7.000% due 02/25/44

   348       402  

FDIC Structured Sale Guaranteed Notes
Series 2010-L2A Class A
3.000% due 09/30/19 (Þ)

   734       750  

FDIC Trust
Series 2010-R1 Class A
2.184% due 05/25/50 (Þ)

   508       510  

Series 2011-R1 Class A
2.672% due 07/25/26 (Þ)

   729       746  

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates
Series 2011-K014 Class X1
Interest Only STRIP
1.449% due 04/25/21

   1,285       109  

Series 2011-K702 Class X1
Interest Only STRIP
1.727% due 02/25/18

   4,788       348  

Series 2012-K501 Class X1A
Interest Only STRIP
1.880% due 08/25/16

   4,994       271  

Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2005-63 Class 1A1
1.358% due 02/25/45 (Ê)

   19       19  

First Horizon Asset Securities, Inc.
Series 2005-AR4 Class 2A1
2.617% due 10/25/35 (Ê)

   881       705  

Freddie Mac
6.000% due 2016

   7       7  

3.500% due 2025

   1,259       1,342  

2.572% due 2030 (Ê)

   1       1  

5.000% due 2035

   619       667  

4.544% due 2037 (Ê)

   157       167  

5.500% due 2037

   678       732  

5.500% due 2038

   2,776       3,081  

6.000% due 2038

   618       686  

4.500% due 2039

   2,240       2,475  

4.000% due 2041

   6,612       7,157  

4.500% due 2041

   6,117       6,750  

2.500% due 12/01/99

   1,960       2,015  

Freddie Mac Mortgage Trust
Series 2010-K7 Class B
5.435% due 04/25/20 (Þ)

   510       531  

Series 2011-K702 Class B
4.936% due 04/25/44 (Þ)

   340       348  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Freddie Mac Reference REMIC
Series 2006-R006 Class ZA
6.000% due 04/15/36

   318       368  

Freddie Mac REMICS
Series 2000-2266 Class F
0.692% due 11/15/30 (Ê)

   8       8  

Series 2003-2624 Class QH
5.000% due 06/15/33

   320       360  

Series 2007-3335 Class BF
0.392% due 07/15/19 (Ê)

   82       82  

Series 2007-3335 Class FT

      

0.392% due 08/15/19 (Ê)

   184       184  

Series 2009-3569 Class NY

      

5.000% due 08/15/39

   1,400       1,635  

Series 2010-3640 Class JA

      

1.500% due 03/15/15

   537       539  

Series 2010-3653 Class B

      

4.500% due 04/15/30

   730       816  

Series 2010-3704 Class DC

      

4.000% due 11/15/36

   500       547  

GE Business Loan Trust
Series 2003-2A Class A

      

0.612% due 11/15/31 (Ê)(Þ)

   623       583  

GE Capital Commercial Mortgage Corp.
Series 2003-C2 Class F

      

5.688% due 07/10/37 (Þ)

   45       45  

Series 2005-C4 Class A4

      

5.486% due 11/10/45

   170       190  

Ginnie Mae I
3.000% due 2027

   662       701  

4.500% due 2039

   1,627       1,781  

30 Year TBA(Ï)

      

3.500%

            

Ginnie Mae II
2.375% due 2026 (Ê)

   102       106  

1.625% due 2027 (Ê)

   7       7  

1.625% due 2032 (Ê)

   36       37  

3.500% due 2040 (Ê)

   1,387       1,470  

4.000% due 2040 (Ê)

   282       300  

4.502% due 2061

   411       456  

4.700% due 2061

   345       389  

5.245% due 2061

   685       780  

30 Year TBA(Ï)

      

3.500%

   2,075       2,218  

GMAC Commercial Mortgage Securities, Inc.
Series 2004-C3 Class A4

      

4.547% due 12/10/41

   118       118  

GMAC Mortgage Corp. Loan Trust
Series 2005-AR2 Class 4A
4.945% due 05/25/35 (Ê)

   362       333  

Government National Mortgage Association
Series 2000-29 Class F
0.744% due 09/20/30 (Ê)

   10       10  

Series 2007-26 Class SD
Interest Only STRIP
6.557% due 05/16/37 (Ê)

   2,172       386  
 

 

Core Bond Fund 57


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Series 2010-116 Class MP
3.500% due 09/16/40

   1,780       1,901  

Series 2011-67 Class B
3.863% due 10/16/47

   230       256  

Series 2011-127 Class IO
Interest Only STRIP
1.558% due 03/16/47

   2,395       184  

Granite Master Issuer PLC
Zero coupon due 12/20/54

   603       736  

Greenwich Capital Commercial Funding Corp.
Series 2002-C1 Class B
5.104% due 01/11/35

   140       141  

Series 2004-GG1 Class A7
5.317% due 06/10/36

   750       795  

Series 2007-GG9 Class A4
5.444% due 03/10/39

   315       350  

GS Mortgage Securities Corp. II
Series 2006-GG6 Class A4
5.553% due 04/10/38

   320       356  

Series 2011-ALF Class A
2.716% due 02/10/21 (Þ)

   240       244  

Series 2011-GC5 Class A4
3.707% due 08/10/44

   735       771  

Series 2012-ALOH Class A
3.551% due 04/10/34 (Þ)

   465       481  

GSMPS Mortgage Loan Trust
Series 2006-RP1 Class 1A2
7.500% due 01/25/36 (Þ)

   458       460  

GSR Mortgage Loan Trust
Series 2005-AR7 Class 6A1
5.132% due 11/25/35 (Ê)

   113       108  

Series 2006-2F Class 3A3
6.000% due 02/25/36

   884       726  

Series 2006-3F Class 2A3
5.750% due 03/25/36

   233       202  

Series 2006-8F Class 4A17
6.000% due 09/25/36

   406       337  

Series 2007-AR2 Class 2A1
2.729% due 05/25/47 (Ê)

   797       566  

Harborview Mortgage Loan Trust
Series 2005-4 Class 3A1
3.091% due 07/19/35 (Ê)

   105       75  

Indymac Index Mortgage Loan Trust
Series 2005-AR31 Class 1A1
2.514% due 01/25/36 (Ê)

   511       317  

Series 2006-AR41 Class A3
0.425% due 02/25/37 (Ê)

   1,113       543  

Series 2007-AR5 Class 1A1
3.225% due 05/25/37 (Ê)

   477       205  

JPMorgan Alternative Loan Trust
Series 2006-A2 Class 3A1
2.850% due 05/25/36 (Ê)

   1,250       740  

JPMorgan Chase Commercial Mortgage Securities Corp.

      

Series 2003-C1 Class A2
4.985% due 01/12/37

   243       246  
   Principal
Amount ($)
or Shares
     Market
Value
$
 

Series 2005-LDP5 Class A4
5.362% due 12/15/44

   555       621  

Series 2006-CB15 Class A4
5.814% due 06/12/43

   370       413  

Series 2006-CB16 Class A4
5.552% due 05/12/45

   220       248  

Series 2006-LDP8 Class A3B
5.447% due 05/15/45

   250       260  

Series 2006-LDP8 Class A4
5.399% due 05/15/45

   770       872  

Series 2007-CB18 Class A4
5.440% due 06/12/47

   1,200       1,354  

Series 2007-CB20 Class AJ
6.285% due 02/12/51

   125       107  

Series 2007-LD12 Class A4
5.882% due 02/15/51

   100       114  

Series 2007-LDPX Class A3
5.420% due 01/15/49

   700       783  

Series 2010-CNTR Class A2
4.311% due 08/05/32 (Þ)

   400       424  

Series 2012-C6 Class A3
3.507% due 05/15/45

   260       269  

JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1
5.005% due 02/25/35 (Ê)

   31       31  

Series 2005-A5 Class TA1
5.419% due 08/25/35 (Ê)

   301       297  

Series 2005-A8 Class 1A1
5.310% due 11/25/35 (Ê)

   244       227  

Series 2005-S3 Class 1A2
5.750% due 01/25/36

   64       59  

Series 2006-A6 Class 1A2
2.747% due 10/25/36 (Ê)

   167       119  

Series 2006-A7 Class 2A4R
2.720% due 01/25/37 (Ê)

   1,302       917  

Series 2007-S3 Class 1A8
6.000% due 08/25/37

   1,068       851  

LB-UBS Commercial Mortgage Trust
Series 2003-C1 Class B
4.479% due 12/15/36

   45       46  

Series 2003-C5 Class C
4.762% due 04/15/37

   130       134  

Mastr Adjustable Rate Mortgages Trust
Series 2006-2 Class 4A1
4.510% due 02/25/36 (Ê)

   133       116  

Series 2007-HF2 Class A1

      

0.555% due 09/25/37 (Ê)

   728       492  

Mastr Alternative Loans Trust
Series 2003-4 Class B1
5.807% due 06/25/33

   120       105  

Series 2004-10 Class 5A6

      

5.750% due 09/25/34

   121       124  

Mellon Residential Funding Corp.
Series 2000-TBC2 Class A1
0.722% due 06/15/30 (Ê)

   82       79  

Merrill Lynch Mortgage Investors, Inc.
Series 2005-A10 Class A
0.455% due 02/25/36 (Ê)

   74       54  
 

 

 58   Core Bond Fund


Table of Contents

Russell Investment Funds

Core Bond Fund

Schedule of Investments, continued — June 30, 2012 (Unaudited)

Amounts in thousands (except share amounts)

 

   Principal
Amount ($)
or Shares
     Market
Value
$
 
      

Series 2006-A1 Class 1A1
2.875% due 03/25/36 (Ê)

   688       383  

Merrill Lynch Mortgage Trust
Series 2002-MW1 Class J
5.695% due 07/12/34 (Þ)

   55       49  

Series 2005-CIP1 Class AM
5.107% due 07/12/38

   295       318  

Series 2008-C1 Class A4
5.690% due 02/12/51

   530       603  

Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-6 Class A4
5.485% due 03/12/51

   100       109  

MLCC Mortgage Investors, Inc.
Series 2005-3 Class 5A
0.495% due 11/25/35 (Ê)

   47       38  

Morgan Stanley Capital I, Inc.
Series 1998-HF2 Class G
6.010% due 11/15/30 (Þ)

   100       100  

Series 2005-T19 Class A4A
4.890% due 06/12/47

   750       822  

Series 2006-HQ9 Class A4
5.731% due 07/12/44

   515       587  

Series 2006-T23 Class A4
5.987% due 08/12/41

   490       568  

Series 2007-IQ16 Class A4
5.809% due 12/12/49

   680       787  

Series 2007-T27 Class A4
5.824% due 06/11/42

   720       836  

Series 2011-C3 Class A2
3.224% due 07/15/49

   195       208  

Series 2011-C3 Class A4
4.118% due 07/15/49

   115       125  

Series 2012-C4 Class A4
3.244% due 03/15/45

   510       515  

Morgan Stanley Dean Witter Capital I
Series 2001-TOP3 Class C
6.790% due 07/15/33

   50       52  

OBP Depositor LLC Trust
Series 2010-OBP Class A
4.646% due 07/15/45 (Þ)

   350       400  

Prime Mortgage Trust
Series 2004-CL1 Class 1A2
0.645% due 02/25/34 (Ê)

   13       12  

Prudential Commercial Mortgage Trust
Series 2003-PWR1 Class C
4.706% due 02/11/36

   50