Individual investors

LifePoints® Moderate Strategy Fund How to invest with Russell Fund objective Seeks to provide high current income and moderate long-term capital appreciation OVERVIEW PERFORMANCE HOLDINGS & DETAILS MANAGERS More fund information Daily prices & standardized performance Prospectus & reports Download a fact sheet (PDF) Tax information Commentary Moderate strategy quarterly review (PDF) LifePoints quarterly performance commentary Portfolio manager We aim for consistent, risk-managed performance by assembling a diversified portfolio of equity, real asset and fixed income funds. This fund is for investors who can tolerate a moderate amount of risk. We blend funds that help provide stability through exposure to a lower volatility investment grade bond fund and a core bond fund, with funds that offer greater return potential over more conservative funds. By allocating 33% of the fund to investments in U.S. large and small cap, international developed markets and global equities, we aim to capture these asset classes' potential for higher returns. Exposure to the real asset category includes a commodity strategies, global infrastructure and global real estate securities fund, which further diversifies the fund, while maintaining return potential. – Mike Ruff Allocation of underlying fund assets As of 01/17/2012 Underlying fund and allocation   Style   Russell U.S. Core Equity Fund     BlackRock Capital Management, Inc.   Growth Columbus Circle Investors   Growth Institutional Capital, LLC   Value Lazard Asset Management, LLC   Market-oriented Russell Investment Management Company*   Market-oriented Schneider Capital Management Corporation   Value Snow Capital Management L.P.   Value Suffolk Capital Management, LLC   Market-oriented Sustainable Growth Advisers, L.P.   Growth   Russell U.S. Quantitative Equity Fund     Aronson+Johnson+Ortiz, L.P.   Market-oriented INTECH Investment Management, LLC   Market-oriented Jacobs Levy Equity Management, Inc.   Market-oriented Numeric Investors, LLC   Market-oriented PanAgora Asset Management, Inc.   Market-oriented   Russell U.S. Small Cap Equity Fund† 1     ClariVest Asset Managment, LLC   Market-oriented Cartwell Investment Partners   Value DePrince, Race & Zollo, Inc.   Value EAM Investors, LLC   Growth Falcon Point Capital, LLC   Growth Huber Capital Management, LLC   Value Jacobs Levy Equity Management, Inc.   Value PENN Capital Management Company, Inc.   Market-oriented Next Century Growth Investors, LLC   Growth Ranger Investment Management, L.P.   Growth Signia Capital Management, LLC   Value   Russell International Developed Markets Fund 2     del Rey Global Investors, LLC   Value AQR Capital Management, LLC   Market-oriented Axiom International Investors, LLC   Growth Marsico Capital Management, LLC   Growth MFS Institutional Advisors, Inc.   Market-oriented Mondrian Investment Partners Limited   Value Pzena Investment Management, LLC   Value Driehaus Capital Management LLC   Growth William Blair & Company, LLC   Growth   Russell Global Equity Fund 2     GLG Inc.   Market-oriented Harris Associates, L.P.   Value MFS Institutional Advisors, Inc   Market-oriented Sanders Capital, LLC   Value Tradewinds Global Investors, LLC   Value T. Rowe Price Associates, Inc.   Growth   Russell Emerging Markets Fund 2     AllianceBernstein, L.P.   Value Arrowstreet Capital, Limited Partnership   Market-oriented Delaware Management Company   Value Genesis Asset Managers, LLP   Market-oriented Harding Loevner LP   Market-oriented UBS Global Asset Management (Americas), Inc.   Growth Victoria 1522 Investments, LP   Market-oriented   Russell Commodity Strategies Fund 3     Goldman Sachs Asset Management, L.P.   Global market-oriented Credit Suisse Asset Management, LLC   Global market-oriented Jefferies Asset Management, LLC   Global market-oriented   Russell Global Infrastructure Fund 4     Cohen & Steers Capital Management, Inc.   Global market-oriented Nuveen Asset Management, LLC (Formerly, FAF Advisors, Inc.)   Global market-oriented Macquarie Capital Investment Management LLC   Global market-oriented   Russell Global Real Estate Securities Fund 5     AEW Capital Management   Global market-oriented Cohen & Steers Capital Management, Inc.   Global market-oriented INVESCO Advisers, Inc., through its INVESCO Real Estate Division   Global market-oriented   Russell Global Credit Strategies Fund 6     DDJ Capital Management, LLC   Sector strategies Oaktree Capital Management, L.P.   Sector strategies Stone Harbor Investment Partners LP   Sector strategies   Russell Strategic Bond Fund 6     Goldman Sachs Asset Management, L.P.   Fully discretionary Brookfield Investment Management Inc.   Sector strategies Logan Circle Partners, L.P.   Sector strategies Metropolitan West Asset Management, LLC   Sector strategies Pacific Investment Management Company, LLC   Fully discretionary   Russell Investment Grade Bond Fund 6     Logan Circle Partners, L.P.   Sector strategies Metropolitan West Asset Management, LLC   Sector strategies Neuberger Berman Fixed Income, LLC   Enhanced core Pacific Investment Management Company, LLC   Fully discretionary Western Asset Management Company   Fully discretionary 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. *The fund's adviser, Russell Investment Management Company (RIMCo), may employ a proprietary "select holdings" strategy in which it exercises investment discretion for a portion of the fund's assets it determines not to allocate to the money managers. The strategy is designed to increase the fund's exposure to stocks that are viewed as attractive by multiple money managers. The use of the select holdings strategy will amplify the fund's security risk and potential underperformance. In addition to managing this strategy, RIMCo performs other investment advisory functions for the funds. † 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. 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. 1 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. 2 The fund's return and net asset value may be significantly affected by political or economic conditions and regulatory requirements in a particular country. Investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. Such securities may be less liquid and more volatile. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and political systems with less stability than in more developed countries. 3 Exposure to the commodities markets may subject the fund to greater volatility than investments in traditional securities, particularly if the investments involve leverage. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or sectors affecting a particular industry or commodity and international economic, political and regulatory developments. The use of leveraged commodity-linked derivatives creates an opportunity for increased return, but also creates the possibility for a greater loss. 4 Investments in infrastructure-related companies have greater exposure to the potential adverse economic, regulatory, political and other changes affecting such entities. Investment in infrastructure-related companies are subject to various risks including governmental regulations, high interest costs associated with capital construction programs, costs associated with compliance and changes in environmental regulation, economic slowdown and surplus capacity, competition from other providers of services and other factors. Investment in non-U.S. and emerging market securities is subject to the risk of currency fluctuations and to economic and political risks associated with such foreign countries. 5 Specific sector investing can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks to real estate investments. Fund investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. 6 Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield ("junk") bonds or mortgage backed securities, especially mortgage backed securities with exposure to sub-prime mortgages. Investment in non-U.S. and emerging market securities is subject to the risk of currency fluctuations and to economic and political risks associated with such foreign countries. 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 March 1, 2011, the Russell Global Credit Strategies Fund was renamed the Russell Global Opportunistic Credit Fund. For more information on Russell LifePoints® Funds or underlying Russell Funds, contact your investment professional or plan administrator for assistance. Each of the LifePoints® Funds, Target Portfolio Series, invests its assets in shares of a number of underlying Russell Funds. From time to time, the fund's adviser may modify the target strategic asset allocation for any fund and/or the underlying funds in which a fund invests including the addition of new underlying funds. A Fund's actual allocation may vary from the target strategic asset allocation at any point in time. In addition, the fund's adviser may also manage assets of the underlying funds directly for a variety of purposes. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. 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. LifePoints® and the Russell logo are registered trademarks and service marks 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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