NMFN: IV, MF, Russell, RF, Russell Emerging Markets Fund

A Diversified Approach To Emerging Markets

June 30, 2008

About the Fund
Russell selects the managers in this fund for their expertise in emerging markets. Russell's research indicates that country effects are more important in emerging markets than in other asset classes, so Russell gives this fund's money managers greater discretion to make country bets than would be typical in Russell's other non-U.S. funds. Russell uses 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.

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; Russell's mutual funds allow you to employ that same approach. Russell identifies investment managers they believe have exceptional capabilities, blending them to help manage risk through diversification, and constantly monitoring 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 06/30/08. 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)				2.6
	Genesis Smaller Companies (United Kingdom)				2.2
	OAO Gazprom (Russia)				2.0
	Sasol, Ltd. (South Africa)				2.0
	Petroleo Brasileiro SA (Brazil)				1.7
	Samsung Electronics Co., Ltd. (South Korea)				1.6
	Genesis Indian Investment Co., Ltd. (India)				1.5
	Usinas Siderugicas de Minas Gerais SA (Brazil)				1.4
	MMC Norilsk Nickel (Russia)				1.2
	Petroleo Brasileiro SA (Brazil)				1.2

					15.3

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

Annualized Returns in Percentages as of June 30, 2008



Fund	QTR	YTD	1 yr	3 yrs	5 yrs	10 yrs	Since Inception 01/29/93

Emerging Markets Fund Class S	0.39	-9.03	5.16	27.41	30.42	13.54	9.20

	Fund Fees and Expenses


	Annual Fund Operating Expenses

	Total		Net


	1.62%		1.62%

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. Month-end performance for Russell mutual funds is available by choosing fund performance from the left-hand navigation.

Characteristics

Total Market Value	$1.5 billion
Net Asset Value	$20.55



	Cusip	Ticker

Class C	782493431	REMCX


Class S	782493746	REMSX

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 more complete information, including a contract and fund prospectus that gives investment objectives, risks, charges, expenses, and other information about the investment company, contact a Northwestern Mutual Financial Network Representative, who is a Registered Representative of Northwestern Mutual Investment Services, LLC (NMIS). Read the prospectuses carefully before you invest or send money.

Consult the Prospectus.
Consult the Statement of Additional Information.

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