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Russell Tax-Managed U.S. Mid & Small Cap Fund Tax-efficient management for mid-cap and smaller stocks How to invest with Russell Fund objective Seeks to provide long-term capital growth on an after-tax basis OVERVIEW PERFORMANCE HOLDINGS & DETAILS MANAGERS More fund information Daily prices & standardized performance Prospectus & reports Money manager overview (PDF) Printable fact sheet (PDF) Tax information Portfolio manager Russell chooses managers that use different investment styles based on our confidence in their stock-selection capabilities and the level of tax-efficiency of their approaches. For example, we may have a growth manager that selects higher quality growth companies, focusing on longer-term economic, geo-political and business trends. Another growth manager may focus on security selection with the belief that earnings expectations and momentum drive stock prices. One value manager may be selected for its strong value-based, bottom-up research, while another may focus on attractively priced value stocks with clear drivers of profit growth and price appreciation. We may also include a tax-focused, enhanced index manager that is expected to help harvest taxable losses to enhance post-tax returns. – Robert Kuharic Allocation of fund assets As of 01/17/2012     % Allocated   Year assigned Growth         Summit Creek Advisors, LLC   21%   2010 Turner Investment Partners Inc.   11%   2004 Market-oriented         Parametric Portfolio Associates LLC   30%   2004 Value         Chartwell Investment Partners   17%   2004 Netols Asset Management, Inc.   21%   2004 Managing money differently The Russell approach has been trusted for decades by many of the world's largest investors; our mutual funds allow you to employ that same approach. We identify investment managers we believe have exceptional capabilities, blend them to help manage risk through diversification, and constantly monitor them. Regardless of market conditions, Russell's investment approach remains constant. Money managers listed are current as of 01/17/2012. Subject to the fund's board approval, Russell has the right to engage or terminate a money manager at any time and without a shareholder vote, based on an exemptive order from the Securities and Exchange Commission. Investments in the funds are not deposits with or other liabilities of any of the money managers and are subject to investment risk, including loss of income and principal invested and possible delays in payment of redemption proceeds. The money managers do not guarantee the performance of any fund or any particular rate of return. The above represents the percentage of fund assets allocated to money managers, excluding the fund's cash reserves. Fund assets not allocated to money managers are managed directly by Russell for a variety of purposes. Small capitalization (small cap) investments involve stocks of companies with smaller levels of market capitalization (generally less than $2 billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks. Investors should consider the additional risks involved in small cap investments. Income from funds managed for tax efficiency may be subject to an alternative minimum tax and/or any applicable state and local taxes. Select a different Russell fund Russell Commodity Strategies Russell Emerging Markets Russell Global Equity Russell Global Infrastructure Russell Global Opportunistic Credit Russell Global Real Estate Securities Russell International Developed Markets Russell Investment Grade Bond Russell Money Market Russell Short Duration Bond Russell Strategic Bond Russell Tax Exempt Bond Russell Tax-Managed U.S. Large Cap Russell Tax-Managed U.S. Mid & Small Cap Russell U.S. Core Equity Russell U.S. Growth Russell U.S. Quantitative Equity Russell U.S. Small Cap Equity Russell U.S. Mid Cap Equity Russell U.S. Large Cap Equity Russell U.S. Value ----LifePoints® Funds---- Conservative Strategy Moderate Strategy Balanced Strategy Growth Strategy Equity Growth Strategy 2017 Retirement Distribution — S Shares 2017 Retirement Distribution — A Shares Fund objectives, risks, charges and expenses should be carefully considered before investing. For a prospectus containing this and other important information call Russell at 1-866-676-7680 or go to the prospectus and reports page to download one. Please read the prospectus carefully before investing. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. For more information on Russell Funds, contact your investment professional or plan administrator for assistance. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. The Russell logo is a trademark and service mark of Russell Investments. Securities products and services offered through Russell Financial Services, Inc., member FINRA, part of Russell Investments. For information on the Financial Industry Regulatory Authority, go to www.finra.org. Copyright © Russell Investments 2007-2011. All rights reserved. First used April 2009. RFS-1902 Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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