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.
– Christopher Tessin, CFA
Allocation of fund assets As of 09/10/2009
% Allocated
Year assigned
Portfolio manager
Growth
Next Century Growth Investors, LLC
10%
2009
Tom Press
Ranger Investment Management, L.P.
11%
2007
Conrad Doenges
Tygh Capital Management, Inc.
20%
2005
Richard Johnson
Market-oriented
ClariVest Asset Management, LLC
15%
2006
Stacey Nutt
Value
Delphi Management, Inc.
10%
1989
Scott Black
DePrince, Race & Zollo, Inc.
12%
2008
Greg Ramsby
Jacobs Levy Equity Management, Inc.
12%
1995
Bruce Jacobs, Ken Levy
Signia Capital Management, LLC
10%
2008
Rich Beavin, Tony Bennett
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 09/30/2009. 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.
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.
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 September 2, 2008, the name of the Equity II Fund changed to Russell U.S. Small & Mid Cap Fund.
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.
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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.
