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.   Initial sales charge Deferred sales charge Annual 12b-1 fees Annual shareholder service fees Class A shares, Money Market Fund only None N/A Up to 0.15% of average daily assets* None Class A shares (excluding Money Market Fund) Up to 5.75% for equity and Lifepoints Funds; up to 3.75% for fixed-income funds; reduced, waived or deferred for large purchases and certain investors 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 0.25% of average daily assets None Class C shares None None 0.75% of average daily assets 0.25% of average daily assets Class E and R2 shares None None None 0.25% of average daily assets Class R3 shares None None 0.25% of average daily assets 0.25% of average daily assets Class R1 and S shares None None None None * To maintain a certain net yield for Class A shares of the Russell Money Market Fund, payments of the 12b-1 distribution fees will be temporarily suspended for the three-month period beginning July 1, 2009. This suspension may be extended for the three-month period beginning October 1, 2009. 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.     Front-end sales charge as % of     Amount of purchase   Offering price   Net amount invested   Financial intermediary commision as % of offering price Equity funds 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 Equity funds include the Russell U.S. Core Equity, Russell U.S. Quantitative Equity, Russell U.S. Small & Mid Cap, Russell International Developed Markets, Russell Global Equity, Russell Emerging Markets and Russell Real Estate Securities Funds. Fixed-income funds 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 Fixed-income funds include the Russell Strategic Bond and Russell Short Duration Bond Funds. LifePoints® funds † 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. †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. 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. Front-end sales charge waivers Purchases of class A shares may be made at net asset value without a front-end or back-end sales charge in the following circumstances. There is no commission paid to the financial intermediaries for shares purchased under the following circumstances: Sales to RIC trustees and employees of Russell (including retired trustees and employees), to the immediate families (as defined below) of such persons, or to a pension, profit-sharing or other benefit plan for such persons Offers of class A shares to any other investment company to effect the combination of such company with a fund by merger, acquisition of assets or otherwise Sales to multi-participant employer sponsored Defined Contribution plans held in plan level accounts, excluding SEPs and SIMPLE-IRAs. Sales to endowments or foundations with $50 million or more in assets Sales to current/retired registered representatives of broker-dealers having sales agreements with the funds' distributor to sell class A shares of the funds and sales to a current spouse or the equivalent thereof, child, step-child (with respect to current union only), parent, step-parent or parent-in-law of such registered representative or to a family trust in the name of such registered representative Accounts managed by a member of Russell Investments Shares purchased by tax-exempt organizations (as defined in Section 501(c)(3) of the IRC) Shares purchased through accounts that are part of certain qualified fee-based programs. Moving between accounts Under certain circumstances, you may transfer class A shares of a fund from an account with one registration to an account with another registration within 90 days without incurring a front-end sales charge. For example, you may transfer shares without paying a front-end sales load in the following cases: From a non-retirement account to an IRA or other individual retirement account From an IRA or other individual retirement account, such as a required minimum distribution, to a non-retirement account In some cases, due to operational limitations or reporting requirements, you must redeem shares from one account and purchase shares in another account to achieve this type of transfer. Aggregated investments The following types of accounts may be combined to qualify for reduced front-end sales charge including purchases made pursuant to rights of accumulation or letter of intent as described below: The following accounts owned by you and/or a member of your immediate family (as defined below): 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. 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. Subject to your financial intermediary's capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals (the "cost value"). 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. The value of all of your holdings in accounts established in calendar year 2007 or earlier will be assigned an initial cost value equal to the market value of those holdings as of the last business day of 2007. Thereafter, the cost value of such accounts will increase or decrease according to actual investments or withdrawals. 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. Exchange privilege Generally, exchanges between class A shares of the RIC funds are not subject to a front-end sales charge. Class A shares of the Russell Money Market Fund initially purchased without payment of a front-end sales charge will be subject to the applicable front-end sales charge when exchanged into class A shares of another RIC fund. Exchanges may have the same tax consequences as ordinary sales and purchases. Please contact your financial intermediary and/or tax adviser for more detailed information. Reinstatement privilege You may reinvest proceeds from a redemption or distribution of class A shares (other than money market funds) into any class A shares of a RIC fund without paying a front end sales charge if such reinvestment is made within 90 days after the redemption or distribution date and there is at least one common tax identification number in the account registration for the accounts that the shares were redeemed or distributed from and the one reinvested in. Proceeds will be reinvested at the net asset value next determined after receipt of your purchase order in proper form. The privilege may not be exercised if proceeds are subject to a purchase restriction as described in the section entitled "frequent trading policies and limitations on trading activity" and certain other restrictions may apply. Contingent deferred sales charges will be credited to your account at current net asset value following notification to the fund by your financial intermediary. 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., member FINRA, part of Russell Investments. For information on the Financial Industry Regulatory Authority, go to www.finra.org. RFS-2114

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