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LifePoints® Funds quarterly commentary JUMP AHEAD TO LifePoints® Target Portfolio Series Conservative Strategy Fund LifePoints® Target Portfolio Series Moderate Strategy Fund LifePoints® Target Portfolio Series Balanced Strategy Fund LifePoints® Target Portfolio Series Growth Strategy Fund LifePoints® Target Portfolio Series Equity Growth Strategy Fund Periods Ending March 31, 2013 Review the primary contributing and detracting factors to LifePoints Funds Target Portfolio Series performance during the last 3-month and 12-month periods. LifePoints® Target Portfolio Series Conservative Strategy Fund The following key factors contributed to performance for the three-month period. Global equity strategies were a positive contributor, as global equity markets defied headline events and macroeconomic uncertainty and posted gains over the quarter. U.S. equity strategies were a positive contributor, as U.S. equity markets were buoyed by improvement in the labor market and positive housing data. An overweight to defensive equity strategies over dynamic equity strategies contributed to performance, as defensive equities outperformed dynamic equities for the quarter. The following key factors detracted to performance for the three-month period. Commodity strategies detracted from performance as commodity markets continue to decouple from equities, responding more to individual market fundamentals of supply and demand. Fixed income strategies detracted from performance as fixed income markets were essentially flat during the quarter, reflecting uncertainty about economic strength and interest rates. International developed markets strategies detracted from performance given our exposure to Japan and poor stock selection within Japan. The following key factors contributed to performance for the 12-month period. Fixed income strategies contributed to performance as rates generally compressed during the year providing some bond price appreciation. Short duration fixed income strategies contributed to performance as exposures to corporate bonds were beneficial. Global real estate strategies contributed to performance, influenced strongly by macro-economic factors and global capital markets volatility. The following key factors detracted to performance for the 12-month period. Commodity strategies detracted as global growth prospects continued to be muted. Global equity strategies detracted from performance due to exposure to emerging markets. International developed markets strategies detracted from performance as exposure to emerging markets underperformed developed markets. LifePoints® Target Portfolio Series Moderate Strategy Fund The following key factors contributed to performance for the three-month period. Global equity strategies were a positive contributor, as global equity markets defied headline events and macroeconomic uncertainty and posted gains over the quarter. U.S. equity strategies were a positive contributor, as U.S. equity markets were buoyed by improvement in the labor market and positive housing data. An overweight to defensive equity strategies over dynamic equity strategies contributed to performance, as defensive equities outperformed dynamic equities for the quarter. The following key factors detracted to performance for the three-month period. Commodity strategies detracted from performance as commodity markets continue to decouple from equities, responding more to individual market fundamentals of supply and demand. Fixed income strategies detracted from performance as fixed income markets were essentially flat during the quarter, reflecting uncertainty about economic strength and interest rates. Emerging market strategies detracted for the quarter, as they underperformed developed markets, driven by a resurgence of Eurozone woes and speculation that the Chinese central bank would tighten monetary policy. The following key factors contributed to performance for the 12-month period. Fixed income strategies contributed to performance as rates generally compressed during the year providing some bond price appreciation. International developed markets strategies were a positive contributor as meaningful action taken during the summer by the European Central Bank and member states to address debt and future growth lifted non-U.S. equity markets. Global equity strategies contributed to performance as global equity markets posted positive returns for the 12 months. The following key factors detracted to performance for the 12-month period. Commodity strategies detracted as global growth prospects continued to be muted. U.S. equity strategies detracted, driven by exposures in the financial services and technology sectors. Global real estate strategies detracted, driven by exposures to Brazil, Japan and Australia. LifePoints® Target Portfolio Series Balanced Strategy Fund The following key factors contributed to performance for the three-month period. U.S. equity strategies were a positive contributor, as U.S. equity markets were buoyed by improvement in the labor market and positive housing data. Global equity strategies were a positive contributor, as global equity markets defied headline events and macroeconomic uncertainty and posted gains over the quarter. U.S. small cap strategies contributed to performance as the resolution of the U.S. fiscal cliff and a partial deal on the U.S. budget deficit spurred confidence in U.S. centric stocks. The following key factors detracted to performance for the three-month period. Commodity strategies detracted from performance as commodity markets continue to decouple from equities, responding more to individual market fundamentals of supply and demand. Emerging market strategies detracted for the quarter, as they underperformed developed markets, driven by a resurgence of Eurozone woes and speculation that the Chinese central bank would tighten monetary policy. International developed markets strategies detracted from performance given our exposure to Japan and poor stock selection within Japan. The following key factors contributed to performance for the 12-month period. Fixed income strategies contributed to performance as rates generally compressed during the year providing some bond price appreciation. International developed markets strategies were a positive contributor as meaningful action taken during the summer by the European Central Bank and member states to address debt and future growth lifted non-U.S. equity markets. Global equity strategies contributed to performance as global equity markets posted positive returns for the 12 months. The following key factors detracted to performance for the 12-month period. Commodity strategies detracted as global growth prospects continued to be muted. U.S. small cap strategies detracted, driven by exposures in the technology sector. U.S. equity strategies detracted, driven by exposures in the financial services and technology sectors. LifePoints® Target Portfolio Series Growth Strategy Fund The following key factors contributed to performance for the three-month period. U.S. equity strategies were a positive contributor, as U.S. equity markets were buoyed by improvement in the labor market and positive housing data. Global equity strategies were a positive contributor, as global equity markets defied headline events and macroeconomic uncertainty and posted gains over the quarter. U.S. small cap strategies contributed to performance as the resolution of the U.S. fiscal cliff and a partial deal on the U.S. budget deficit spurred confidence in U.S. centric stocks. The following key factors detracted to performance for the three-month period. Commodity strategies detracted from performance as commodity markets continue to decouple from equities, responding more to individual market fundamentals of supply and demand. Emerging market strategies detracted for the quarter, as they underperformed developed markets, driven by a resurgence of Eurozone woes and speculation that the Chinese central bank would tighten monetary policy. An overweight to dynamic equity strategies over defensive equity strategies detraced from performance, as defensive equities outperformed dynamic equities for the quarter. The following key factors contributed to performance for the 12-month period. International developed markets strategies were a positive contributor as meaningful action taken during the summer by the European Central Bank and member states to address debt and future growth lifted non-U.S. equity markets. Global equity strategies contributed to performance as global equity markets posted positive returns for the 12 months. U.S. equity strategies contributed, led by strong performance in healthcare and utilities sectors. The following key factors detracted to performance for the 12-month period. Commodity strategies detracted as global growth prospects continued to be muted. U.S. small cap strategies detracted, driven by holdings in the technology sector. Global real estate strategies detracted, driven by exposures to Brazil, Japan and Australia. LifePoints® Target Portfolio Series Equity Growth Strategy Fund The following key factors contributed to performance for the three-month period. U.S. equity strategies were a positive contributor, as U.S. equity markets were buoyed by improvement in the labor market and positive housing data. Global equity strategies were a positive contributor, as global equity markets defied headline events and macroeconomic uncertainty and posted gains over the quarter. U.S. small cap strategies contributed to performance as the resolution of the U.S. fiscal cliff and a partial deal on the U.S. budget deficit spurred confidence in U.S. centric stocks. The following key factors detracted to performance for the three-month period. Commodity strategies detracted from performance as commodity markets continue to decouple from equities, responding more to individual market fundamentals of supply and demand. Emerging market strategies detracted for the quarter, as they underperformed developed markets, driven by a resurgence of eurozone woes and speculation that the Chinese central bank would tighten monetary policy. Global equity strategies contributed to performance as global equity markets posted positive returns for the 12 months. The following key factors contributed to performance for the 12-month period. International developed markets strategies were a positive contributor as meaningful action taken during the summer by the European Central Bank and member states to address debt and future growth lifted non-U.S. equity markets. U.S. equity strategies contributed, led by strong performance in healthcare and utilities sectors. Global equity strategies contributed to performance as global equity markets posted positive returns for the 12 months. The following key factors detracted to performance for the 12-month period. Commodity strategies detracted as global growth prospects continued to be muted. U.S. small cap strategies detracted, driven by holdings in the technology sector. Global real estate strategies detracted, driven by exposures to Brazil, Japan and Australia. Significant changes None Fund objectives, risks, charges and expenses should be carefully considered before investing. A summary prospectus, if available, or a prospectus containing this and other important information can be obtained by calling 800-787-7354 or by visiting www.russell.com. Please read a prospectus carefully before investing. Copyright © Russell Investments 2013. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. Russell Investments and Standard & Poor's Corporation are the owners of the trademarks, service marks and copyrights related to their respective indexes. LifePoints® and the Russell logo are trademarks and service marks of Russell Investments. 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. The LifePoints® Funds are a series of fund of funds which expose an investor to the risks of the underlying funds proportionate to their allocation. Investment in LifePoints Funds involves direct expenses of each fund and indirect expenses of the underlying funds, which together can be higher than those incurred when investing directly in an underlying fund. 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. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. 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 10670 First used October 2012 Updated April 2013			Learn more about Russell's LifePoints Funds Printer friendly version of this page

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