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

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05371

Russell Investment Funds

(Exact name of registrant as specified in charter)

1301 2nd Avenue 18^th Floor,

Seattle Washington 98101

(Address of principal executive offices) (Zip code)

Mary Beth Rhoden, Secretary and Chief Legal Officer

Russell Investment Funds

18^th 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

Item 1. Reports to Stockholders

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

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.

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

Russell Investment Funds

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

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

Securities 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.

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

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

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

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


	6			Multi-Style Equity Fund

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.


Multi-Style Equity Fund		7

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)

USD

1,794

09/12

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

170

USD

11,529

09/12

335

S&P 500 Index Futures (CME)

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		% of Net Assets

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.


	8			Multi-Style Equity Fund

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

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

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

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

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

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


$ 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

Russell Investment Funds

Aggressive Equity Fund

Shareholder Expense Example — June 30, 2012 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	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

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

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

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

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

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

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

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)

USD

09/12

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

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

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

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

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

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

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

(This page intentionally left blank)

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


$ 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

Russell Investment Funds

Non-U.S. Fund

Shareholder Expense Example — June 30, 2012 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	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

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

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

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

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

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

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		% of Net Assets


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

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

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

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

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

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

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


$ 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

Russell Investment Funds

Core Bond Fund

Shareholder Expense Example — June 30, 2012 (Unaudited)

Fund Expenses

Example

Actual Expenses

Hypothetical Example for Comparison Purposes


	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

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

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

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

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

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

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

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

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

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

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

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

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

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

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