Russell International Developed Markets Fund The opportunity of international markets Class S September 30, 2008 About the fund This fund combines managers invested in non-U.S. stock markets. Research indicates it is critical to manage an international fund's allocation to each country and sector with respect to the benchmark. Therefore, Russell allocates a portion of the fund's assets to coutry- and sector-constrained strategies, while maintaining a focus on active stock selection. Generally, managers in the fund use a wide variety of strategies, including purchasing stocks of companies with strong balance sheets, consistent earnings growth and an expectation for improving earnings. This fund's managers provide a representative example of these approaches, which combine to improve the consistency of the fund's performance. – Jim Jornlin Investment strategy   Seeks to provide long-term capital growth. Invests in non-U.S. securities. Blends growth, market-oriented and value styles. Broadly diversified across all developed markets outside the United States. Fund highlights   Provides exposure to some of the world's largest international companies, as well as smaller, regional companies. Adds exposure to developed non-U.S. markets. Selects managers with demonstrated expertise in evaluating opportunities in non-U.S. markets. Helps manage risk by blending money managers with differing investment styles. 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. Allocation of fund assets     % Allocated   Year assigned Growth         Axiom International Investors, LLC   6.0%   2003 Marsico Capital Management, LLC   10.0%   2006 UBS Global Asset Management (Americas), Inc.   6.0%   2007 Wellington Management Company, LLP   10.0%   2005 Market-oriented         AQR Capital Management, LLC   13.0%   2002 MFS Institutional Advisors, Inc.   12.0%   2005 Russell Investment Management Company*   6.0%   2006 Value         Alliance Bernstein, L.P.   12.5%   1997 Altrinsic Global Advisors, Inc.   11.0%   2007 Mondrian Investment Partners Limited   13.5%   1999 *The fund's adviser may employ a "select holding" strategy for a portion of the fund's assets that 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 and strategy will amplify the fund's security risk and potential underperformance. Money managers listed are current as of 09/30/08. 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. Non-U.S. markets and emerging or developing markets entail different risks than those typically associated with U.S. markets, including currency fluctuations, political and economic instability, accounting changes and foreign taxation. Non-U.S. securities may be less liquid and more volatile than the U.S., and emerging markets securities may be less liquid and more volatile than U.S. and longer-established non-U.S. markets. Regional allocations   % of total equity Asia Europe/Middle East/Africa Latin America Other   26 68 3 4 Total   100  Top ten holdings   % of fund Nestle SA (Switzerland) Total SA (France) GlaxoSmithKline PLC (United Kingdom) Novartis AG (Switzerland) BNP Paribas (France) Telefonica SA (Spain) Reckitt Benckiser PLC (Great Britain) Credit Suisse Group (Switzerland) Heineken NV (Netherlands) Roche Holding AG (Switzerland)   2.3 1.8 1.5 1.4 1.3 1.2 1.2 1.2 1.1 1.1     14.1 *The top ten holdings list does not reflect the investment of cash reserves and cash collateral received in securities lending transactions in one or more of RIC's money market funds. Performance review | As of September 30, 2008 Russell International Developed Markets Fund - Class S         Annualized returns QTR   YTD   1 yr   3 yrs   5 yrs   10 yrs   Since inception 01/31/83 -21.12   -30.02   -31.13   1.43   9.25   5.09   10.44 Fund Fees and Expenses Annual Fund Operating Expenses Total Net 1.02% 1.02% Growth of $10,000 - class S shares Performance information is historical and does not guarantee future results. Investment return and principal value will fluctuate so that redeemed shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current to the most recent month-end performance for Russell mutual funds is available by visiting: www.russell.com/us/fundperformance. The fund first issued class S shares on September 2, 2008. The returns shown for class S shares prior to that date are the returns of the fund’s class I shares. Characteristics Total net assets   Net asset value $ billion   $30.01     Cusip   Ticker Class A   782494512   RLNAX Class C   782494496   RLNCX Class E   782493217   RIFEX Class I   782493605   RINSX Class S   782494488   RINTX Class Y   782493191   RINYX The fund offers other classes of shares with higher fees and expenses. These other classes may charge up to a 0.75% distribution fee and a 0.25% shareholder servicing fee which will result in a higher expense ratio and lower performance than that shown above. For a full description of other available classes, please see the prospectus. 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 International Fund changed to Russell International Developed Markets Fund. Fund performance is reported net of fund advisory and administrative fees, and gross of financial intermediary fees. 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. (formerly Russell Fund Distributors, Inc.), member FINRA, part of Russell Investments. For information on the Financial Industry Regulatory Authority, go to www.finra.org. Copyright © Russell Investments 2007-2008. All rights reserved. First used October 2008. RFD 08-0667 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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