Tax-Managed Global Equity Fund Broadening opportunities through tax-aware diversification Class S March 31, 2008 About the fund "In this fund, Russell has created a diversified equity portfolio that seeks both after-tax return potential and global diversification. We invest the majority of the fund's assets in our Tax-Managed Large Cap Fund and our Tax-Managed Mid & Small Cap Fund, which employ tax-sensitive managers. For balance, we've added the Quantitative Equity Fund in which managers select stocks using quantitative investment models. Our International Securities Fund and Emerging Markets Fund provide a strategic measure of global equities for further return potential and diversification." – Jill Johnson Investment strategy   Seeks to provide long-term, after-tax capital growth and increased after-tax return potential. Provides tax-managed exposure to both U.S. and non-U.S. large-, mid- and small-cap stocks. Offers an effective diversified core equity fund for tax-sensitive investors. Fund highlights   Manages volatility by employing managers with a wide variety of investment strategies, including growth, value, "bottom-up" fundamental and "top-down" macro-economic. Takes advantage of market changes by blending managers with tax sensitive investment approaches in different equity sub-asset classes. 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 underlying fund assets Tax-Managed Global Equity Fund1 Quantitative Equity Fund2 Market-Oriented Aronson+Johnson+Ortiz, LP Franklin Portfolio Associates, LLC Goldman Sachs Asset Management, L.P. Jacobs Levy Equity Management, Inc. Russell Investment Management Company* International Securities Fund2, 3 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, 4 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. Tax-Managed Large Cap Fund5 Growth Sands Capital Management, Inc. Turner Investment Partners, Inc. Market-Oriented J.P. Morgan Investment Management, Inc. Value Armstrong Shaw Associates, Inc. Palisades Investment Partners, LLC Tax-Managed Mid & Small Cap Fund5, 6 Growth Transamerica Investment Management, LLC Turner Investment Partners, Inc. Market-Oriented Parametric Portfolio Associates, LLC Value Chartwell Investment Partners Netols Asset Management, Inc. *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 desinged 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 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 The Tax-Managed Global Equity Fund is exposed to the specific risks of the underlying funds proportionate to their allocation. Investment in the fund involves direct expenses and indirect expenses of the underlying funds, which together can be higher than those incurred when investing directly in an underlying fund. 2 Tax-efficiency is not a stated objective of the Quantitative Equity Fund, International Securities Fund and Emerging Markets Fund. 3 Non-U.S. markets entail different risks than those typically associated with U.S. markets, including currency fluctuations, political and economic instability, accounting changes and foreign taxation. Securities may be less liquid and more volatile. 4 Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which can be expected to have less stability than those of more developed countries. Securities may be less liquid and more volatile than U.S. and longer-established non-U.S. markets. 5 Income from funds managed for tax efficiency may be subject to an alternative minimum tax and/or any applicable state and local taxes. 6 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. Performance review | As of March 31, 2008 Tax-Managed Global Equity Fund - Class S             Annualized returns     QTR   YTD   1 yr   3 yrs   5 yrs   Since inception 01/31/00 Return Before Taxes   -10.72   -10.72   -4.42   7.82   14.28   2.18 Pre-Liquidation After Tax Returns1,2   -10.72   -10.72   -5.05   7.37   13.93   1.91 Post-Liquidation After Tax Returns2,3   -6.97   -6.97   -2.65   6.54   12.43   1.75 Fund Fees and Expenses Annual Fund Operating Expenses Total Net 1.64% 1.10% 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 $83.45 million   $10.91     Class C   Class E   Class S Cusip   782478705   782478754   782478606 Ticker   RTGCX   RTGEX   RTGSX 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. 1 Return after taxes on distributions. If the underlying funds have realized capital losses, the return after taxes on distributions and sale of fund shares may be higher than the return before taxes and the return after taxes on distributions. The calculation of return after taxes on distributions and sale of fund shares assumes that a shareholder has sufficient capital gains of the same character to offset any capital losses on a sale of fund shares and that the shareholder may therefore deduct the entire capital loss. 2 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. 3 Return after taxes on distributions and sale of fund shares. Returns after taxes on distributions may be the same as returns before taxes for the same period if there were no distributions for that period. For more information on the Tax-Managed Global Equity Fund or underlying Russell Funds, contact your investment professional or plan administrator for assistance. 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. 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 April 2007. RFD 07-6570 (0277) 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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