Russell Emerging Markets Fund A diversified approach to emerging markets Class S June 30, 2008 About the fund "Russell selects the managers in this fund for their expertise in emerging markets. Our research indicates that country effects are more important in emerging markets than in other asset classes, so we give this fund's money managers greater discretion to make country bets than would be typical in our other non-U.S. funds. We use multiple managers with different strategies to help manage the risk associated with this approach. Management strategies within the fund vary widely, with some managers emphasizing country and/or sector research, some using a more quantitative approach, and others taking a more bottom-up approach to individual stock selection." – Scott Crawshaw Investment strategy   Seeks to provide long-term capital growth. Emphasis on non-U.S. equity securities in emerging or developing countries. Higher level of volatility than Russell's International Securities Fund. Utilizes active country/active stock selection. Fund highlights   Provides diversification to help manage risk in a potentially volatile asset class. Manages risk by blending money managers with differing styles and investments. Expands portfolio diversification by providing exposure to emerging markets, which may grow more quickly than developed markets. 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 Growth         T. Rowe Price International, Inc.   15%   2002 UBS Global Asset Management (Americas), Inc.   10%   2007 Market-oriented         Arrowstreet Capital, Limited Partnership   20%   2003 Genesis Asset Managers, LLP   20%   1990 Harding Loevner Management, L.P.   15%   2006 Value         Alliance Bernstein, L.P.   20%   1999 Money managers listed are current as of 06/30/2008. 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. 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. Regional allocations   % of total equity Asia   36 Europe/Middle East/Africa   36 Latin America   26 Other   2 Total   100  Top ten holdings   % of fund LUKOIL (Russia) Genesis Smaller Companies (United Kingdom) OAO Gazprom (Russia) Sasol, Ltd. (South Africa) Petroleo Brasileiro SA (Brazil) Samsung Electronics Co., Ltd. (South Korea) Genesis Indian Investment Co., Ltd. (India) Usinas Siderurgicas de Minas Gerais SA (Brazil) MMC Norilsk Nickel (Russia) Petroleo Brasileiro SA (Brazil)   2.6 2.2 2.0 2.0 1.7 1.6 1.5 1.4 1.2 1.2     17.4 *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 June 30, 2008 Russell Emerging Markets Fund - Class S         Annualized returns QTR   YTD   1 yr   3 yrs   5 yrs   10 yrs   Since inception 01/29/93 0.39   -9.03   5.16   27.41   30.42   13.54   9.20 Fund Fees and Expenses Annual Fund Operating Expenses Total Net 1.58% 1.58% 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 $1.5 billion   $20.55     Cusip   Ticker Class A   782494603   REMAX Class C   782493431   REMCX Class E   782493654   REMEX Class S   782493746   REMSX Class Y*   782494439   REMYX * Class Y shares of this fund will not be available for sale until Sept. 26, 2008. 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 Emerging Markets Fund changed to the Russell Emerging Markets 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 April 2007. RFD 07-6560 (0262) 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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