Share classes and expenses JUMP AHEAD TO Front-end sales charges Reducing your front-end sales charges The funds offer multiple classes of shares. Each class of shares has its own sales charge and expense structure, which enables you to choose the class of shares (and pricing) that best meets your specific needs and circumstances. You should consult with you financial intermediary about the comparative pricing and features of each class, the services available for shareholders in each class, the compensation that will be received by the financial intermediary in connection with each class and other factors that may be relevant to your decision as to which class of shares to buy. Class A shares, Money Market Fund only     Initial sales charge   None Annual 12b-1 fees and service fees   Up to 0.15% of average daily assets Class A shares (excluding Money Market Fund)     Initial sales charge   Up to 5.75% for equity and Lifepoints Funds and up to 3.75% for fixed-income Funds; reduced, waived or deferred for large purchases and certain investors Deferred sales charge   1.00% on redemption of class A shares made within 12 months of a purchase on which no front-end sales charge was paid and your financial intermediary was paid a commission by the funds' distributor Annual 12b-1 fees and service fees   Up to 0.25% of average daily assets Class C shares     Initial sales charge   None Deferred sales charge   None Annual 12b-1 fees and service fees   Up to 1.00% of average daily assets Class E and R2 shares     Initial sales charge   None Deferred sales charge   None Annual 12b-1 fess and service fees   Up to 0.25% of average daily assets Class R3 shares     Initial sales charge   None Deferred sales charge   None Annual 12b-1 fees and service fees   Up to 0.50% of average daily assets Class R1 and S shares     Initial sales charge   None Deferred sales charge   None Annual 12b-1 fees and service fees   None Front-end sales charges Class A shares (excluding Money Market Fund) are sold at the offering price, which is the net asset value plus a front-end sales charge. You pay a lower front-end sales charge as the size of your investment increases to certain levels. You do not pay a front-end sales charge on the funds' distributions of dividends or capital gains you reinvest in additional class A shares. The tables below show the rate of front-end sales charge that you pay, depending on the amount that you purchase. They also show the amount of compensation that is paid to your financial intermediary out of the front-end sales charge. This compensation includes commissions to financial intermediaries that sell class A shares. Financial intermediaries may also receive the distribution fee payable on class A shares at an annual rate of up to 0.25% of the average daily net assets represented by the class A shares serviced by them. The equity funds and the fixed-income funds have different front-end sales charges. Russell Funds - equity funds     Front-end sales charge as % of     Amount of purchase   Offering price   Net amount invested   Financial intermediary commision as % of offering price Less than $50,000   5.75   6.10   5.00 $50,000 but less than $100,000   4.50   4.71   3.75 $100,000 but less than $250,000   3.50   3.63   2.75 $250,000 but less than $500,000   2.50   2.56   2.00 $500,000 but less than $1,000,000   2.00   2.04   1.60 $1,000,000 or more*   -0-   -0-   up to 1.00 The equity funds include the Diversified Equity, Quantitative Equity, Special Growth, Real Estate Securities, Global Equity, International Securities and Emerging Markets Funds. Russell Funds - fixed-income funds     Front-end sales charge as % of     Amount of purchase   Offering price   Net amount invested   Financial intermediary commision as % of offering price Less than $50,000   3.75   3.90   3.00 $50,000 but less than $100,000   3.50   3.63   2.75 $100,000 but less than $250,000   2.50   2.56   2.00 $250,000 but less than $500,000   2.00   2.04   1.60 $500,000 but less than $1,000,000   1.50   1.52   1.20 $1,000,000 or more*   -0-   -0-   up to 1.00 The fixed-income funds include the Multistrategy and Short Duration Bond Funds. LifePoints® Funds For the class A shares of the LifePoints Funds Target Date Series, only existing investors may invest in these funds. For more information, see the full prospectus.     Front-end sales charge as % of     Amount of purchase   Offering price   Net amount invested   Financial intermediary commision as % of offering price Less than $50,000   5.75   6.10   5.00 $50,000 but less than $100,000   4.50   4.71   3.75 $100,000 but less than $250,000   3.50   3.63   2.75 $250,000 but less than $500,000   2.50   2.56   2.00 $500,000 but less than $1,000,000   2.00   2.04   1.60 $1,000,000 or more*   -0-   -0-   up to 1.00 * Investment of $1,000,000 or more. You do not pay a front-end sales charge when you buy $1,000,000 or more of shares of RIC funds (other than money market funds). However, if your financial intermediary was paid a commission by the funds' distributor on those class A shares and you redeem those class A shares within one year of purchase, you will pay a deferred sales charge of 1.00%. Additional information on commissions paid to your financial intermediary on purchases of $1,000,000 or more is available in the funds' SAI. Reducing your front-end sales charges To receive a reduced front-end sales charge on purchases of class A shares as described below, you must notify your financial intermediary of your ability to qualify for a reduced front-end sales charge at the time your order for class A shares is placed. Please review the prospectus or contact your financial intermediary for a complete list on the ways you can reduce your front-end sale charge. Rights of accumulation ("ROA") You may combine current purchases of any RIC fund (other than money market funds) with the value of your existing holdings of all RIC funds (other than money market funds) to determine your current front-end sales charge. You must notify your financial intermediary at the time an order is placed for a purchase or purchases which would qualify for the reduced front-end sales charge due to existing investments or other purchases. The reduced front-end sales charge may not be applied if such notification is not furnished at the time of the order. For purchases to be aggregated for the purpose of qualifying for the ROA, they must be made on the same day through one financial intermediary. Your financial intermediary may require certain information to verify that the purchase qualifies for the reduced front-end sales charge. The right of accumulation is subject to modification or discontinuance at any time with respect to all shares purchased thereafter. Additional information is available from your financial intermediary. Letter of intent ("LOI") A non-binding LOI allows you to combine purchases of shares of any RIC funds (other than money market funds) you intend to make over a 13-month period with the market value of your current RIC fund holdings (other than money market funds) to determine the applicable front-end sales charge. Any appreciation of your current RIC fund holdings and any shares issued from reinvestment of dividends or capital gains will not be considered purchases made during the 13-month period. A portion of your account (up to 5%) will be held in escrow to cover additional class A front-end sales charges that may be due. If you purchase less than the amount specified in the LOI and the LOI period expires or a full-balance redemption is requested or the account is transferred to another financial intermediary during the LOI period, shares in your account will be automatically redeemed to pay additional front-end sales charges that may be due. Fund shares held in plan or omnibus accounts are not eligible for an LOI unless the plan or omnibus account can maintain the LOI on their record keeping system. If the shareholder dies within the 13-month period, no additional front-end sales charges are required to be paid. Aggregated investments The following types of accounts, owned by you and/or a member of your immediately family (as defined below), may be combined to qualify for reduced front-end sales charge including purchases made pursuant to rights of accumulation or letter of intent.   Accounts held individually or jointly Those established under the Uniform Gift to Minors Act or Uniform Transfer to Minors Act IRA accounts and certain single participant retirement plan accounts Solely controlled business accounts Trust accounts benefiting you or a member of your immediate family For purposes of aggregated investments, your immediate family includes your spouse, or the equivalent thereof, and your children and step-children under the age of 21. Purchases made in nominee or street name accounts may NOT be aggregated with those made for other accounts and may NOT be aggregated with other nominee or street name accounts unless otherwise qualified as described above. 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. Securities products and services offered through Russell Financial Services, Inc. (formerly Russell Fund Distributors, Inc.), member FINRA, part of Russell Investments. For information on the Financial Industry Regulatory Authority, go to www.finra.org. RFD 08-0317

WWW.RUSSELL.COM     INSTITUTIONAL INVESTORS     FINANCIAL PROFESSIONALS     INDEXES     SITE MAP    

© Russell Investments 1995-2008. All rights reserved.
Legal Information.    Privacy Statement.