LifePoints® Growth Strategy Fund Aiming for higher return while managing risk Class S March 31, 2008 About the fund "In this fund, you can see Russell's proven investment process in action. We aim for consistent, risk-managed performance by assembling a complete portfolio of stock, bond and real estate funds. This fund is for more aggressive investors with a higher risk tolerance or longer investment horizon. We've weighted the Growth Strategy Fund toward stocks, but have added a small bond allocation to help manage volatility. The asset classes represented by the underlying funds include U.S. large-, mid- and small-cap stocks, non-U.S. and real estate securities and core bonds with a small exposure to higher yielding bonds. The fund also has a small allocation to a global equity fund to capture this additional investment strategy." – Jill Johnson Investment strategy   Seeks to provide high long-term capital appreciation with low current income. A broadly diversified fund of funds, investing in a combination of underlying funds consisting of approximately 80% stocks (U.S. and non-U.S.) and 20% bonds. Emphasis on stocks for capital appreciation. Core equity exposure blends growth, market-oriented and value styles. Fund highlights   Balances the growth potential of stocks with a small allocation to bonds for stability. Diversifies across 4 asset classes, 8 funds and more than 40 manager products. Maintains an optimal target asset allocation for a growth investor through regular rebalancing. 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. Your challenge: where should you be? As you move from left to right on the graph — increasing risk — there are different investment strategies that may offer potentially higher returns. However, as with any type of portfolio structuring, attempting to manage risk and increase return could, at certain times, either unintentionally reduce returns or increase volatility. Underlying fund and asset allocation 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. Diversified Equity Fund Growth Columbus Circle Investors Marsico Capaital Management, LLC Montag & Caldwell, Inc. Turner Investment Partners, Inc. Market-Oriented Arnhold and S. Bleichroeder Advisers, LLC Russell Investment Management Company† Suffolk Capital Management, LLC Value AllianceBernstein, L.P. Institutional Capital, LLC MFS Institutional Advisors, Inc. Schneider Capital Management Corporation Special Growth Fund1 Growth Gould Investment Partners, LLC Ranger Investment Management, L.P. Tygh Capital Management, Inc. Market-Oriented ClariVest Asset Managment, LLC PanAgora Asset Managment, Inc. Value Delphi Management, Inc. DePrince, Race & Zollo, Inc. Jacobs Levy Equity Management, Inc. Signia Capital Management, LLC Quantitative Equity Fund Market-Oriented Aronson+Johnson+Ortiz, L.P. Franklin Portfolio Associates, LLC Goldman Sachs Asset Management, L.P. Jacobs Levy Equity Management, Inc. Russell Investment Management Company† Global Equity Fund2 Growth Gartmore Global Partners T. Rowe Price International Market-Oriented ClariVest Asset Management, LLC Value Harris Associates, L.P. International Securities Fund2 Growth Axiom International Investors, LLC Marsico Capital Management, LLC UBS Global Asset Management (Americas), Inc. Wellington Management Company, LLP Market-Oriented AQR Capital Management, LLC MFS Institutional Advisors, Inc. Russell Investment Management Company† Value AllianceBernstein, L.P. Altrinsic Global Advisors, LLC Mondrian Investment Partners Limited Emerging Markets Fund2 Growth T. Rowe Price International, Inc. UBS Global Asset Management (Americas), Inc. Market-Oriented Arrowstreet Capital, Limited Partnership Genesis Asset Managers, LLP Harding Loevner Management, L.P. Value AllianceBernstein, L.P. Real Estate Securities Fund3 Global — Market-Oriented Cohen & Steers Capital Management, Inc. Growth Heitman Real Estate Securities, LLC Market-Oriented INVESCO Institutional (N.A.), Inc., through INVESCO Real Estate Division RREEF America, LLC Value AEW Management and Advisors, L.P. Multistrategy Bond Fund4 Fully Discretionary Drake Capital Management, LLC Goldman Sachs Asset Management, L.P. Pacific Investment Management Company, LLC Sector Rotation Hyperion Brookfield Asset Management, Inc. Logan Circle Partners, L.P. Metropolitan West Asset Management, LLC †The Fund's adviser may employ a "select holdings" 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 strategy will amplify the Fund's security risk and potential underperformance. Money managers listed are current as of 03/31/2008. 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. 1 Small capitalization (small cap) investments involve stocks of companies with smaller levels of market capitalization (generally less than $2 billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks. Investors should consider the additional risks involved in small cap investments. 2 The fund's return and net asset value may be significantly affected by political or economic conditions and regulatory requirements in a particular country. Investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. Such securities may be less liquid and more volatile. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and political systems with less stability than in more developed countries. 3 Specific sector investing such as real estate 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. 4 Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest primarily in high yield ("junk") bonds or mortgage-backed securities, especially mortage-backed securities with exposure to subprime mortgages. Performance review | as of March 31, 2008 Growth Strategy Fund1 - Class S         Annualized returns QTR   YTD   1 yr   5 yrs   10 yrs   Since inception 09/16/97 -7.96   -7.96   -3.07   13.29   5.17   5.87 1 The LifePoints® Growth Strategy Fund is exposed to the specific risks of the underlying funds in proportion to their allocation. Fund Fees and Expenses Annual Fund Operating Expenses Total Net 1.51% 1.09% Net annual operating expense ratio reflects the actual expenses expected to be borne by shareholders. At least until February 28, 2009, the Fund's annual direct and indirect fund-level operating expenses are capped at the greater of (a) a specified percentage of the Fund's average daily net assets on an annual basis or (b) an amount equal to the current "Acquired Funds Fees and Expenses" on an annual basis. The cap may not be terminated during the relevant period except at the Board's discretion. Details of the cap are in the current prospectus. 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 market value   Net asset value   Beta1   30-day SEC yield2 $3.90 billion   $11.33   0.84   2.49 1 A statistical measure of a stock's volatility compared with the overall market, as measured by the Russell 3000® Index. A beta of less than one indicates lower risk than the market; a beta of more than one indicates higher risk than the market. The Russell 3000® Index measures the performance of the 3,000 largest U.S. securities based on total market capitalization. 2 The fund's current yield for the 30-day period ending March 31, 2008     Class A   Class C   Class E   Class S Cusip   782478614   782493381   782493548   782493126 Ticker   RALAX   RALCX   RALEX   RALSX     Class R1   Class R2   Class R3     Cusip   782478382   782478374   782493597     Ticker   RALRX   RALTX   RALDX     The Fund offers other classes of shares with higher fees and expenses. These other classes may charge up to a 5.75% sales charge and a 0.25% distribution fee (Class A) or up to a 0.75% distribution fee and a 0.25% shareholder servicing fee (Class C), 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. For more information on Russell LifePoints® Funds or underlying Russell Funds, contact your investment professional or plan administrator for assistance. 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 asset allocation for any fund and/or the underlying funds in which a fund invests. In addition, the Funds may in the future invest in other funds which are not currently underlying funds. Performance is based upon the actual mix of underlying funds recommended at each specific point in time, which may differ from the current mix. Details of past changes to underlying funds and/or allocations are available upon request. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. 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. LifePoints® and the Russell logo are registered trademarks and service marks 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 2006-2008. All rights reserved. First used July 2006. RFD 06-5989 (0182) 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.			Other LifePoints funds Equity Growth Strategy Growth Strategy Balanced Strategy Moderate Strategy Conservative Strategy   LifePoints quarterly commentary Class S commentary Class E commentary   Fund information Daily prices & performance Prospectus Semiannual report Annual report Statement of additional information Tax information Schedule of investments Printable fact sheet (PDF)   Monthly performance LifePoints class S shares LifePoints class A shares LifePoints class C shares LifePoints class R3 shares LifePoints class E shares   Printer friendly version of this page Send feedback or comments Site Search

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