Russell Real Estate Securities Fund Expanding real estate opportunities Class S September 30, 2008 About the fund In this fund, Russell's goal is to combine managers with complementary investment approaches for effectiveness during different phases of real estate, economic and stock market cycles. We have chosen a mix of managers intended to help manage risk while increasing the fund's potential to outperform its benchmark in a wide variety of market environments. This mix of managers uses a range of investment strategies, including value, growth and market-oriented approaches and provides exposure to all major property sectors. We believe this group, when combined, provides a more durable investment approach and consistent performance profile than a single manager. – Bruce Eidelson Investment strategy   Seeks to provide current income and long-term capital growth. Exposure to real estate through equity securities. High current income with moderate capital appreciation potential. Specialty fund offering additional diversification. Fund highlights   Provides broad exposure to all areas of the real estate market including retail, office, industrial and apartment holdings. Includes a global manager, creating further diversification benefits through international exposure. Helps to build a strong portfolio by diversifying beyond equity and fixed income holdings. 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 Global - Market-oriented         Cohen & Steers Capital Management, Inc.   10%   2007 Growth         Heitman Real Estate Securities, LLC   10%   2004 Market-oriented         INVESCO Institutional (N.A.) Inc., through INVESCO Real Estate Division   28%   2003 RREEF America, LLC   25%   2002 Value         AEW Management and Advisors, L.P.   27%   1996 Money managers listed are current as of 09/30/2008. 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. 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. Sector weightings   % of total equity Apartment Diversified Health Care Hotel/Leisure Manufactured Homes Office/Industrial Regional Malls Self Storage Shopping Center Warehouse Other   15.9 14.7 11.1 3.9 0.8 11.5 15.5 5.9 11.6 6.8 2.2 Due to rounding totals may not equal 100%. Top ten holdings   % of fund Simon Property Group, Inc. Vornado Realty Trust Public Storage, Inc. Boston Properties, Inc. Equity Residential ProLogis Federal Realty Investors Trust AvalonBay Communities, Inc. Ventas, Inc. Regency Centers Corp.   9.2 5.3 5.1 4.5 4.3 4.2 3.9 3.9 3.4 3.2     47.0 *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 Real Estate Securities Fund - Class S         Annualized returns QTR   YTD   1 yr   3 yrs   5 yrs   10 yrs   Since inception 07/28/89 3.70   -0.05   -12.98   5.59   13.79   13.08   12.00 Fund Fees and Expenses Annual Fund Operating Expenses Total Net 1.08% 1.08% 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. Characteristics Total net assets   Net asset value $2.1 billion   $38.96     Cusip   Ticker Class A   782494405   RREAX Class C   782493423   RRSCX Class E   782493647   RREEX Class S   782493761   RRESX Class Y   782478713   RREYX 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 Real Estate Securities Fund changed to the Russell Real Estate Securities 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 08-0672 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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