Individual investors

Russell U.S. Small Cap Equity Fund† Blend of small-cap managers How to invest with Russell Fund objective Seeks to provide long-term capital growth OVERVIEW PERFORMANCE HOLDINGS & DETAILS MANAGERS More fund information Daily prices & standardized performance Prospectus & reports Money manager overview (PDF) Money manager update (PDF) December 20, 2011 Printable fact sheet (PDF) Tax information Portfolio manager In this fund, Russell chooses managers that invest using many different investment styles, from looking for companies they believe have rapidly growing earnings to ones that are undervalued. For example, a growth manager and a value manager each use distinct investment processes. One may maintain a concentrated portfolio of companies focusing on earnings growth momentum, resulting in higher risk relative to the benchmark. The other may use a quantitative process to pick stocks and manage the portfolio, which keeps its risk exposures close to the benchmark. When combined, all the managers within this fund provide a less volatile investment approach than offered by any single one of the underlying managers on a stand-alone basis. – Jon Eggins Allocation of fund assets As of 01/17/2012     % Allocated   Year assigned Growth         Next Century Growth Investors, LLC   7.5%   2009 Ranger Investment Management, L.P.   12.5%   2007 Falcon Point Capital, LLC   10%   2011 EAM Investors, LLC   5%   2011 Market-oriented         ClariVest Asset Management, LLC   10%   2006 PENN Capital Management Company, Inc.   5%   2011 Value         Chartwell Investment Partners   12.5%   2011 DePrince, Race & Zollo, Inc.   12.5%   2008 Jacobs Levy Equity Management, Inc.   12.5%   1995 Signia Capital Management, LLC   7.5%   2008 Huber Capital Management, LLC   5%   2011 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. 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. † On January 1, 2012, the Russell U.S. Small & Mid Cap Fund was renamed the Russell U.S. Small Cap Equity Fund.  In addition, the Fund’s investment strategy changed from investing primarily in common stocks of small and medium capitalization U.S. companies to investing primarily in common stocks of small capitalization U.S. companies. As a result, the Fund’s primary benchmark changed from the Russell 2500® Index to the Russell 2000® Index. 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: December 2011 Revised: January 2012 RFS-7175 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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