Russell Funds Russell Multi-Strategy Alternative Fund Money Manager Overview May 2015

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1 Russell Multi-Strategy Alternative Fund Money Manager Overview May 2015 Russell s investment approach Russell uses a multi-asset approach to investing, combining asset allocation, manager selection and ongoing portfolio management in its investment portfolios. Using this approach as a backdrop to mutual fund construction, Russell researches, monitors, hires and terminates (subject to Fund Board approval) money managers from around the world and strategically allocates fund assets to them. Russell oversees all investment advisory services to the funds and manages assets not allocated to money managers. The fund The Russell Multi-Strategy Alternative Fund includes managers that use a diverse range of alternative investment strategies and sub-strategies that are expected to have low correlation to each other. They utilize Relative Value, Event Driven, Equity Hedge and Tactical Trading strategies. The fund may invest in a broad range of instruments, markets, and asset classes economically tied to U.S., foreign and emerging markets. Investments may include equity securities, fixed income securities and derivatives. The fund may take both long and short positions in all of its investments. The fund may also make investments for hedging purposes in order to address perceived misalignment between its investment exposures and current or anticipated market conditions. As part of its investment objective, the fund seeks to have lower volatility than global equity markets. From a performance standpoint, the fund has relatively conservative return expectations. Over a market cycle, the fund is designed to achieve returns somewhere between global equities and core fixed income, with volatility that is closer to core fixed income than equities. However, as with any investment strategy, the fund may or may not be successful in achieving this objective and an investor could lose money by investing in the fund. Money Manager Strategies and Sub-Strategies (as of May 2015) *See strategy definitions on page 10. Relative Value* Event Driven * Equity Hedge* Tactical Trading * DCI Sub: Fixed income (long/short credit) PIMCO Sub: Fixed income Brigade Sub: Opportunistic credit Scoggin Sub: Multi-strategy AQR Capital Sub: Quantitative Omega Sub: Fundamental Passport Sub: Fundamental AQR Capital Sub: Systematic macro Cambridge Sub: Discretionary macro Russell portfolio manager Lance Babbit The Russell portfolio manager s role The Russell portfolio manager is responsible for identifying and selecting the strategies and money managers included in the fund and determining the weight for each assignment. The portfolio manager manages the fund on a daily basis to help keep it on track, monitoring risk and return expectations at the total fund level and making changes when deemed appropriate and/or necessary. Multiple resources from across Russell are used to help determine what is believed to be the best combination of managers and strategies. Manager research and capital markets research are just some of the tools at the portfolio manager s disposal to help identify opportunities and manage risk. The portfolio manager and analysts track the effectiveness of every money manager and strategy in the fund. Occasionally, adjustments may be necessary due to reasons such as a change in control at a money manager, the opportunity to select another manager or strategy Russell believes offers an investment proposition that would help improve the fund, or changes in market dynamics. While the portfolio manager makes the decisions about the fund s money manager and strategy line-up, any significant changes must be validated through an internal Russell governance process to ensure all key considerations were addressed. Money manager changes are also subject to approval by the fund s Board of Trustees. Target allocation of fund assets: The percentages below represent the target allocation of the fund s assets to each money manager s strategy. Russell manages the fund s liquidity reserves and may manage assets to effect the fund s investment strategies and/or to actively manage the fund s overall exposures to seek to achieve the desired risk/return profile for the fund. This may constitute 5% or more of fund assets at any given time. 19% AQR Capital Management, LLC 11% Brigade Capital Management, L.P. 8% DCI, LLC 11% Omega Advisors, Inc. 11% Pacific Investment Management Company LLC 13% Passport Capital, LLC 11% TCW/Scoggin, LLC 16% The Cambridge Strategy (Asset Management) Limited Page 1 of 10 // Russell Investments // Russell Multi-Strategy Alternative Fund Not FDIC Insured - May Lose Value - No Bank Guarantee

2 AQR Capital Management, LLC May 2015 AQR Capital Management, LLC is an investment management firm employing a disciplined quantitative, global investment process (AQR stands for Applied Quantitative Research). The firm manages both longonly and long-short strategies covering equity, fixed income, currency, and derivatives markets. Headquarters: Greenwich, CT Founded: 1998 Lead managers: Brian Hurst, Yao Hua Ooi, Cliff Asness, John Liew, Jacques Friedman, Lars Nielsen, and Andrea Frazzini Futures Forwards Options Swaps Inflation linked bonds Equities Equity-related instruments Global Equity, Currency, Bond and Interest Rates, and Commodities Number of holdings: Investment strategies and sub-strategies used by this Sub- Sub- Tactical Trading Systematic Macro Equity Hedge Quantitative Russell included AQR Capital Management, LLC (AQR) in the initial money manager line-up of the Russell Multi- Strategy Alternative Fund in Russell has been following AQR since The firm focuses on investments in global equities, developed market fixed income (sovereign bonds), developed market inflation linked bonds, and commodity-linked instruments. AQR manages the following sub-strategies within the fund. AQR s systematic trading strategy seeks positive return over a market cycle through tactically managed allocations to the firm s managed futures and risk parity strategies. o o The AQR managed futures strategy takes both long and short positions across a diversified opportunity set of more than 100 equity, currency, commodity, and bond and interest rate futures markets. The respective positions taken in each market are based on a systematic investment process that capitalizes on short- to intermediate-term trend following signals in the corresponding markets. The AQR risk parity sub-strategy uses a proprietary risk forecast system to help build an optimally diversified portfolio of global market instruments at specified forecast volatility levels across about 50 different markets. AQR s quantitative equity hedge strategy is a market neutral strategy that seeks to deliver positive absolute returns by taking long and short positions in equity and equity-related instruments that, based on proprietary quantitative models, are deemed to be either undervalued (and likely to increase in price) or overvalued (and likely to decrease in price). The strategy is designed to be market neutral, targeting a portfolio beta to equity markets of zero over a business cycle. Russell believes that AQR s senior investment team is highly experienced and that AQR s investment process is strong. Performance of the managed futures sub-strategy will be a function of the degree to which identifiable and persistent upward/downward trends exist within the 100+ market investment universe. Performance of the risk parity sub-strategy will be a function of whether the approximately 50 betas of the markets the portfolio is exposed to pay off in a predictable and consistent manner. The strategy is expected to struggle when macroeconomic concerns cause markets to meaningfully deviate from historical price trends and relationships. Performance of the equity market neutral sub strategy should be a function of whether the underlying factor themes, such as value, momentum, sentiment, quality, stability, and management signaling correctly identify and size investments in overvalued and/or undervalued stocks. Page 2 of 10

3 Brigade Capital Management, L.P. May 2015 Brigade Capital Management, LLC (Brigade) is a fixed income investment firm with an emphasis on credit research. Its investment products include long/short credit, distressed debt and traditional high yield. Brigade was founded by Donald Morgan and Patrick Kelly, and its first investment strategy was launched in early Headquarters: New York, NY Founded: 2006 Lead managers: Donald Morgan and Benjamin Renshaw Long: Short: Primarily corporate bonds and bank loans Some convertible bonds, asset-backed securities, and municipal bonds Liquid U.S. and European credit indexes Short-term currency forwards Principally in USA Canada, Western Europe and Australia Number of holdings: Russell included Brigade Capital Management, LLC (Brigade) in the initial money manager line-up of the Russell Multi-Strategy Alternative Fund in Brigade manages an event driven opportunistic credit strategy. Donald Morgan and Ben Renshaw are the two portfolio managers. Brigade s credit research process is implemented by a team of 15 sector analysts and four distressed and restructuring analysts. Brigade s opportunistic credit strategy will seek to achieve capital appreciation. The primary component of Brigade s credit strategy will be to opportunistically vary exposure to high-yield credit instruments, including bonds, loans, and some structured credit bonds. Although the strategy will be long-biased, it will have a short credit component as well. The short component will be implemented principally through credit default swap indices that reference U.S. and European high yield and investment grade bonds. Brigade s analysts focus on high-quality asset coverage and cash flow generation for companies that are current on their credit obligations. They also consider factors such as overall industry health and companyspecific trends before making an investment recommendation to the portfolio managers. Russell believes Brigade s senior investment professionals have meaningful history in the strategy, having managed portfolios across multiple credit cycles. Brigade s opportunistic credit strategy is designed to capture credit market upside combined with reduced magnitude of losses on the downside, especially with respect to long-only credit index investing due to credit selection and partial hedging of interest rate and/or credit risk. Brigade is expected to do well in an environment that is reasonably stable or where credit markets are improving. Russell expects that Brigade s strategy could underperform long-only, high yield credit strategies in big market rallies over a short time period, especially if that rally is caused by a sharp shift in market sentiment. Event Driven Sub- Page 3 of 10 Opportunistic Credit

4 DCI, LLC May 2015 DCI, LLC is an independent asset management firm specializing in long/short and long-only corporate credit strategies. Headquarters: San Francisco, CA Founded: 2004 Lead Stephen Kealhofer Credit default swaps (CDS) of individual investment grade and high yield corporate issuers Principally in USA Europe Minimal exposure to Australia-Pacific Number of holdings: 150 to 250 (long and short) Sub- Relative value Fixed income (Long/short credit) Russell added DCI, LLC to the Russell Multi-Strategy Alternative Fund in DCI manages a market-neutral portfolio within investment grade and high yield corporate credit markets. DCI describes itself as technology-assisted fundamental in investing in credit markets. Russell considers DCI to be a quantitative, market-neutral credit manager that incorporates a fundamental oversight to analysis to ensure robust data is used in the model. Russell believes that adding this manager will increase the fund s diversification by adding a unique exposure to a market-neutral strategy focused on investment grade and high yield corporate credit markets. The fund may have increased sensitivity to moves in interest rates and credit spreads in periods of extreme market stress, however the manager has a proven track record of managing these systemic risks to the portfolio. DCI incorporates a strategy that is unique, on a stand-alone basis, in providing a highly efficient approach to researching and determining what it believes to be fair value of individual corporate credits. By investing significant capital in infrastructure, the firm can effectively import large amounts of data from a variety of sources, ensure the robustness of that data, incorporate fundamental analysis to normalize model inputs and execute trades in a timely fashion. Russell believes DCI s experience and infrastructure, combined with the systematic approach that incorporates common sense fundamental overlay and disciplined risk management, can provide investors with a unique source of market-neutral alpha generation within developed credit markets. The background of the principals as architects of quantitative credit risk modeling reflects the strong pedigree of investment professionals within the firm. The manager is expected to do well in periods of higher credit and asset volatility. Periods of low volatility in credit spreads or high correlation between credits are expected to pose challenges for DCI. Page 4 of 10

5 Omega Advisors, Inc. May 2015 Omega Advisors, Inc. is an investment firm focusing on alternative investments. The firm was founded and is 100% owned by Leon Cooperman. Headquarters: New York, NY Founded: 1991 Lead Leon Cooperman Russell included Omega Advisors, Inc. (Omega) in the initial money manager line-up of the Russell Multi-Strategy Alternative Fund in Omega and its founder Leon Cooperman have been managing alternative investment portfolios since Leon Cooperman is the Portfolio Manager of the U.S. equity strategy and leads a team of 12 investment analysts, two traders and a macro team comprised of five professionals. Omega seeks to generate long-term gains by primarily investing in U.S. equities with a long-bias. The strategy is value based investing, driven by fundamental research and its principal focus is large capitalization U.S. equities with more limited investments in equities of developed European countries and Japan. Primarily mid to large cap equities May also invest in treasuries, corporate bonds, preferred stocks, ADR/ADS, publicly traded trusts, publicly traded LP s, equity futures, currency futures, REITS and ETFs. Primarily USA Some Europe and Japan Number of holdings: Omega s investment time horizon for any portfolio company is generally 12 months. Omega pursues a rigorous, "bottom-up" approach to stock selection, with particular emphasis on the distinction between a company's business value and its market value. In estimating a company's business value, Omega follows an eclectic style that draws on various valuation methodologies. Once business values have been estimated, they are compared to market prices in order to arrive at an informed investment decision. In addition, index futures and other derivatives are used in an effort to both maximize return potential and hedge downside risk. Omega is the only manager in the portfolio focused on generating value from long positions in U.S. equities. Omega is expected to perform well in a market that is driven by fundamentals. Omega may be vulnerable if the overall market declines steeply, if momentum-type stocks lead the market and/or small and mid cap stocks lead the market. Sub- Equity Hedge Fundamental (U.S. long bias) Page 5 of 10

6 Pacific Investment Management Company LLC May 2015 Pacific Investment Management Company LLC (PIMCO) was founded in 1971 as a subsidiary of Pacific Life Insurance Company. In 2000, PIMCO was acquired by Allianz SE, a European-based, multinational insurance and financial services holding company. PIMCO is one of the world s largest fixed income managers, with a presence in every major bond market, managing both traditional and alternative fixed income strategies. Headquarters: Newport Beach, CA Founded: 1971 Lead managers: Qi Wang Sovereign bonds and fixed income derivatives Commodities-linked derivatives Corporate bonds (investment grade, high yield, emerging markets) Agency and non-agency mortgage-backed securities Global, primarily in developed markets with limited exposure to emerging markets Number of holdings: Sub- Relative value Fixed income Russell added Pacific Investment Management Company LLC (PIMCO) to the Russell Multi-Strategy Alternative Fund in Russell has been following PIMCO for more than 20 years and their alternative fixed income strategies since Unlike traditional bond portfolios, PIMCO s alternative fixed income investment strategies seek to produce returns with low correlation to traditional assets such as bonds and stocks. The strategies are designed to isolate desired exposures from unwanted risks in an effort to make use of anomalies and capture value in global fixed income markets. The strategies may be implemented through the use of both long and short positions in a broad range of investment instruments. PIMCO uses a discretionary relative value fixed income and macro approach. It combines systematic and bottom-up fundamental analysis to guide decision-making and implementation. The firm identifies what it believes to be the most attractive securities and relative value trades to implement the overall strategic and tactical portfolio exposures based upon its macroeconomic views. The long-term investment themes are set by PIMCO s Investment Committee, while the portfolio managers develop the shorter-term trading and hedging views. Trades will incorporate bottom-up relative value strategies including yield curve, basis trades, long/short volatility, mortgage securities and carry trades. Additional topdown overlays are applied, including duration and spread management, yield curve positioning and country/currency exposures. PIMCO adds diversification to the fund and Russell believes it has the potential to perform well across multiple market cycles. The firm s mandate is the only one in the fund that focuses on global fixed income and currency markets. It provides the fund with a broad range of exposure to liquid fixed income and foreign exchange markets, including exposure to interest rates, credit, emerging markets and currencies. Russell believes the experience of the principal investment professionals in managing fixed income and currency strategies, the firm s global presence and experience, and its expertise in researching fixed income markets will benefit the fund. The firm uses its experience to identify trade ideas it believes have the highest probability of success, while maintaining a strict risk management approach that seeks to limit downside risks during periods of market turmoil. PIMCO s strategy will tend to do well in periods of market volatility, active market participation and identifiable trends or mean reversion. PIMCO s strategy will tend to struggle in periods of significant dislocation such as liquidity crisis, government intervention, breakdowns in factor relationships and severe deleveraging. Page 6 of 10

7 Passport Capital, LLC May 2015 Passport Capital, LLC is a global investment firm founded by John H. Burbank III in The firm offers both standalone equity long/short and multistrategy hedge fund mandates. Mr. Burbank owns the firm and serves as the Chief Investment Officer. Headquarters: San Francisco, CA Founded: 2000 Lead managers: John Burbank III and Tim Garry Equities, ETFs, equity linked derivatives, currency forwards Global Number of holdings: Sub- Equity hedge Fundamental Russell added Passport Capital, LLC (Passport) to the Russell Multi-Strategy Alternative Fund in Russell began following Passport in Passport manages a global equity long/ short strategy for the fund. The Passport strategy is co-managed by John Burbank III and Tim Garry. John tends to concentrate on topdown macro analysis while Tim focuses on risk management. Both work with the analysts on stock selection. The co-portfolio managers work collaboratively and John serves as the ultimate decision maker. The co-pms are supported by a staff of 24 investment and 6 risk and trading professionals. Passport s strategy is designed to achieve appreciation by investing and trading a portfolio of publicly traded global equities on both a long and short basis, along with maintaining a separate hedge book designed to opportunistically hedge against equity market downturns. The strategy is expected to hold approximately 40 to 70 long positions, 10 to 25 short positions, and the hedge portfolio made up of ETFs, equity linked derivatives and currency forwards. The investment process combines a macroeconomic framework for developing views on thematic headwinds and tailwinds and fundamentally oriented stock selection, along with a systematic approach to portfolio construction and risk management. The co-portfolio managers are supported by an investment team in which professionals specialize by sector or geography. There are also separate risk management and quantitative specialists. Russell believes that the co-portfolio managers are experienced investors with complementary backgrounds and talents that work well together. Passport is the only money manager in the fund focused on generating value from long and short positions in global equities. Given the strategy s focus on combining thematic and fundamental analysis within the stock selection process, Russell believes that the strategy will perform best when other investors are rewarding current macroeconomic themes and show a preference for stocks with sound fundamentals and earnings potential. The strategy is expected to struggle when its thematic views are out of favor, the market declines steeply, or when transitory issues cause other investors to treat companies equally (e.g. market conditions are such that fundamental winners and losers are treated equally). Page 7 of 10

8 TCW/Scoggin, LLC May 2015 TCW/Scoggin, LLC is a recently formed joint venture between the TCW Group and the Scoggin affiliated companies ( Scoggin ). Through this joint venture, TCW/Scoggin, LLC will manage distressed and eventdriven alternative investment strategies. Headquarters: New York, NY Founded: 2012 Lead managers: Craig Effron, Curtis Schenker and Dev Chodry Russell added TCW/Scoggin, LLC (Scoggin) to the Russell Multi-Strategy Alternative Fund in Scoggin manages an event-driven strategy for the fund. Scoggin uses a global -- but primarily U.S. -- opportunistic, multi-strategy event strategy focused on identifying fundamental long/short investments. The strategy invests primarily in three areas: event driven equities with a catalyst, special situations and limited credit opportunities. Scoggin uses a research-intensive, bottom up approach to building the portfolio while striving to adhere to a conservative risk strategy. The investment objective of the strategy is to seek to maximize capital appreciation while managing risk. Russell believes this manager offers a differentiated program, which is expected to provide exposure to meaningful catalyst driven equities that are currently not well represented within the fund. This manager is expected to provide diversification within the fund and offer a return stream that is not historically highly correlated with other assets in the fund. Long and short positions in equities Equity equivalents, warrants, options, swaps Bonds, notes, debentures Principally in USA Global Number of holdings: Sub- Event driven Multi-strategy Russell believes Scoggin s diversified approach gives it the flexibility to capture value at different points in the market cycle. Scoggin has the ability to look through full capital structures to identify relative value, and the team s comfort in investing in more than mergers and acquisitions equity trades allows them to identify and invest in a broad array of opportunities. Craig Effron and Curtis Schenker have been working together for 25 years, and they have managed portfolios through many different market environments. Russell believes the overall team dynamic at the firm is strong. The investment professionals are supported by in-house research, trading, and operations teams. Scoggin is expected to do well in periods of increasing equity prices, tightening credit spreads and periods of increased corporate activity. The firm is expected to struggle in a sustained sell-off in credit and equity markets. Page 8 of 10

9 The Cambridge Strategy (Asset Management) Ltd. May 2015 The Cambridge Strategy Ltd. is an institutional asset manager based in London with a branch office in Hong Kong and a representative office in New York. Headquarters: London, U.K Founded: 2003 Lead managers: Russell Thompson (CIO), Ali Yigitbasioglu, PhD and Walid Khalfallah Equities Currencies Debt instruments Commodities G-20 countries (20 major economies including 19 countries and the European Union) Emerging markets Number of holdings: Sub- Tactical trading Discretionary macro Russell added The Cambridge Strategy Ltd. (Cambridge) to the Russell Multi-Strategy Alternative Fund in Cambridge manages a tactical trading strategy for the fund. Cambridge seeks to generate risk adjusted returns relative to the fund s benchmark through a blended exposure to currencies, equities and debt instruments in G-20 countries (20 major economies including 19 countries and the European Union), and to a smaller extent in emerging markets. Commodities are used on an opportunistic basis and based on fundamental or technical drivers, oftentimes related to emerging or frontier markets events. Russell believes Cambridge adds a differentiated, diversifying, active, discretionary macro-economic strategy to the fund. Cambridge s investment process depends largely on the identification of key top-down drivers as the determinates of global investment opportunities. The strategy is then expressed globally, across markets and security types. Implementation is achieved through the use of a broad range of physical and derivative instruments. The firm s risk management process is based on a proprietary algorithm using advanced mathematical and statistical techniques, which takes into account the entire return distribution. Within the equity component, country or sector baskets of securities are created to capture the top-down factors identified in the research process. Within the currency component, Cambridge identifies short and medium term moves in currency pairs, utilizing an approach designed to perform across diverse market environments. Within the rates component, positions are designed to use price anomalies and future directional moves that are expected to occur given the top-down drivers identified. Commodities are used on an opportunistic basis. Russell believes the depth of talent across the investing, risk and support teams is robust. Cambridge is attractive to Russell for its multi-trader team, the focus on structural diversification across currencies/equities/debt, and focus on risk management. Russell expects Cambridge to be additive to the fund due to its historically low correlation to global equities and to other tactical trading managers in the fund. Cambridge is expected to do well in markets that are modestly trending (either up or down). Cambridge is expected to struggle in choppy markets due to the whipsawing impact on portfolios. Page 9 of 10

10 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 or by visiting Please read a prospectus carefully before investing. *Money manager strategies definitions: Relative Value An investment strategy that seeks to identify price discrepancies or liquidity mismatches among securities that share a common financial factor such as interest rates, an index or issuer to seek gains and mitigate risk. The strategy is not reliant upon market direction. A money manager may employ a variety of quantitative and qualitative techniques to identify securities it believes are mispriced or display liquidity discrepancies based upon historical, fundamental or technical factors. Event Driven An investment strategy that seeks gains from market movements in the prices of financial instruments caused by specific events. Such events may include balance sheet restructurings, mergers and acquisitions, litigation, regulatory action or a change in perception of the riskiness of investments. Investments in an Event Driven strategy may include corporate fixed income securities, equity-related instruments, non-agency asset-backed and mortgage-backed securities. Certain of these investments may be illiquid. Equity Hedge An investment strategy that utilizes long and short positions primarily in equity and equity-related instruments. On the long side, money managers will seek gains from securities that they believe are undervalued, provide short term trading opportunities or offer growth opportunities. On the short side, money managers will (1) seek gains from securities that they believe are overvalued or provide short term trading opportunities, (2) seek to reduce overall market risk or (3) seek gains from an anticipated decline in the price of a company or index by using short sales or options on common stocks or indexes to hedge risk. This strategy may also use derivatives, including options, futures and options on futures. Tactical Trading An investment strategy across global markets that seeks return based on themes or trends in equity markets, interest rates, commodity markets, government securities, currencies or futures markets. These themes or trends can be price-based (i.e., asset price momentum or an asset price relative to another asset or set of assets) or based on economic theory (i.e., forecasts based on the analysis of interest rate trends, political changes, government policy, flow of funds, or other broad systemic factors). While Tactical Trading strategies often utilize directional long or short positions across global markets, they may also express views on the relative value of assets. Tactical Trading may use multi-durational investments, including short-term investments, to seek gains. Fund Risks: Alternative strategies may be subject to risks related to equity securities; fixed income securities, including non-investment grade fixed income securities, which involve higher volatility and higher risk of default than investment grade fixed income securities; non-u.s. and emerging markets securities, which involve risks such as currency fluctuation, political and economic instability, immature economic structures that could result in additional volatility; derivatives, which are subject to a number of risks such as liquidity risk, market risk, credit risk, default risk, counterparty risk (the risk that the other party in an agreement will fail to perform its obligations) and management risk; currency trading, which may involve instruments that have volatile prices, are illiquid or create economic leverage; commodity investments, which may have greater volatility than investments in traditional securities; and liquidity, because certain investments may become illiquid under adverse or volatile market or economic conditions. Additionally, the Fund may enter into short sales and certain of the Fund money managers may utilize a short-only strategy. The making of short sales exposes the Fund to the risk of liability equal to the market value of the security that is sold, in addition to the costs associated with establishing, maintaining and closing out the short position. Short sales have the potential for unlimited loss. The fund may invest in derivatives, including futures, options, forwards and swaps. Investments in derivatives may cause the Fund's losses to be greater than if it invests only in conventional securities and can cause the Fund to be more volatile. Derivatives involve risks different from, or possibly greater than, the risks associated with other investments. The Fund's use of derivatives may cause the Fund's investment returns to be impacted by the performance of securities the Fund does not own and result in the Fund's total investment exposure exceeding the value of its portfolio. Money managers listed are current as of 05/29/2015. 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. Investments in the Funds are not deposits with or other liabilities of any of the money managers and are subject to investment risk, including loss of income and principal invested and possible delays in payment of redemption proceeds. The money managers do not guarantee the performance of any Fund or any particular rate of return. This document will be updated annually. If a manager change is made during a year, a manager specific page will be added or removed. The investment styles employed by a Fund's money managers may not be complementary. This concentration may be beneficial or detrimental to a Fund's performance depending upon the performance of those securities and the overall economic environment. The multi-manager approach could increase a Fund's portfolio turnover rates which may result in higher levels of realized capital gains or losses with respect to a Fund's portfolio securities, higher brokerage commissions and other transaction costs. The degree of correlation among money managers investment strategies and the market as a whole will vary as a result of market conditions and other factors. Some money managers will have a greater degree of correlation with each other and with the market than others. The Russell Multi-Strategy Alternative Fund is classified as a "non-diversified fund" under the 1940 Act which means that a relatively high percentage of the fund's assets may be invested in a limited number of issuers. Thus, the fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio, and may be more susceptible to greater losses because of these developments. 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. 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 Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of London Stock Exchange Group. Securities products and services offered through Russell Financial Services, Inc. member FINRA, part of Russell Investments. Copyright Russell Investments All rights reserved. Date of first use: August 2012, Revised May 2015 RFS Page 10 of 10// Russell Investments // Russell Multi-Strategy Alternative Fund