Russell U.S. Value Fund Enhanced blend of value managers Class S September 30, 2008 About the fund In this all-capitalization fund, Russell combines managers with diverse value strategies to help neutralize a natural tendency of many value managers to vary significantly from the benchmark's sector structure. For example, one manager may be an aggressive value manager that focuses on undervalued large cap stocks. Another manager may provide diversification by focusing on stocks paying dividends. By combining these managers, we try to reduce some of the risks normally associated with a single-style approach. – Dennis Jensen, CFA Investment strategy   Seeks to provide long-term capital growth. Highly diversified investments with an emphasis on undervalued stocks. Invests primarily in large- and mid-cap stocks, with some exposure to small company stocks. Fund highlights   To help manage risk, blends managers using a variety of value investing styles, from yield-oriented to turnaround-oriented approaches. Managers focus on companies with solid fundamentals or attractive investment value. Specialty fund offering additional portfolio diversification. 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 Value         DePrince, Race & Zollo, Inc.   24%   2003 Iridian Asset Management, LLC   28%   2001 JS Asset Management, LLC   20%   2007 Systematic Financial Management, L.P.   28%   2001 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. The investment strategies are the goals of the individual money managers; there is no assurance that the exact objective will always be met. 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. Sector weightings   % of total equity Auto and Transportation Consumer Discretionary Consumer Staples Financial Services Health Care Integrated Oils Materials and Processing Other Energy Producer Durables Technology Utilities Miscellaneous   3.4 10.3 2.6 24.7 11.1 6.9 6.7 5.5 11.1 9.7 6.6 1.5 Due to rounding totals may not equal 100%. Top ten holdings   % of fund JPMorgan Chase & Co. Bank of America Corp. Chevron Corp. Citigroup, Inc. Hewlett-Packard Co. Northrop Grumman Corp. Centex Corp. Amgen, Inc. AT&T, Inc. Genzyme Corp.   2.7 2.3 2.2 2.0 1.5 1.4 1.4 1.4 1.3 1.3     17.5 *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 U.S. Value Fund - Class S         Annualized returns QTR   YTD   1 yr   3 yrs   5 yrs   Since inception 01/31/01 -14.28   -27.01   -32.73   -5.01   3.61   0.59 Fund Fees and Expenses Annual Fund Operating Expenses Total Net 1.03% 1.03% 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 $234.5 million   $7.22     Cusip   Ticker Class C   782478796   RSVCX Class E   782478788   RSVEX Class I   782478770   RSVIX Class S   782478762   RSVSX 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 Select Value Fund changed to Russell U.S. Value 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 08-0674 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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