Strategic Diversification in One Investment

Fund Objective
Seeks to provide high current income and moderate long-term capital appreciation.

Investment Strategy

• Seeks to provide high current income and moderate long-term capital appreciation.
• A diversified fund of funds, investing in a combination of underlying funds consisting of approximately 40% stocks and 60% bonds.
• Core equity exposure blends growth, market-oriented and value styles with exposure to stock investments in both U.S. and non-U.S. markets.

Fund Highlights

• Balances bond stability and income with a moderate allocation to stocks for growth potential.
• Diversifies across 4 broad asset classes, 8 funds and more than 50 manager products.
• Maintains an optimal target asset allocation for a moderate investor through regular rebalancing.

Characteristics
As of 06/30/2009
Updated quarterly

¹ A statistical measure of a stock's volatility compared with the overall market, as measured by the Russell 3000® Index. A beta of less than one indicates lower risk than the market; a beta of more than one indicates higher risk than the market. The Russell 3000 Index measures the performance of the 3,000 largest U.S. securities based on total market capitalization.

² The fund's current yield for the 30-day period ending 06/30/2009

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.

Performance Review
Average Returns — Class S Shares
As of 06/30/2009
Updated quarterly

Annualized Returns

The Net Annual Operating Expense Ratio may be less than the Total Operating Expense Ratio and represents the actual expenses to be borne by shareholders after application of a contractual advisory fee waiver and/or reimbursement through February 28, 2010 and a contractual cap on expenses through February 28, 2010. These contractual agreements may not be terminated during the relevant periods except at the Board of Trustees discretion. Details of these agreements are in the current prospectus. Absent these reductions, the funds return would have been lower.

Growth of $10,000
As of 06/30/2009

The LifePoints® Moderate Strategy Fund is exposed to the specific risks of the underlying funds in proportion to their allocation.

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.

The Fund offers other classes of shares with higher fees and expenses. These other classes may charge up to a 5.75% sales charge and a 0.25% distribution fee (Class A) or up to a 0.75% distribution fee and a 0.25% shareholder servicing fee (Class C), 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.

Underlying Fund Allocation
As of 06/30/2009
Updated monthly

Due to rounding totals may not equal 100%.

The LifePoints® Funds are a series of fund of funds which expose an investor to the risks of the underlying funds proportionate to their allocation. Investment in LifePoints Funds involves direct expenses of each fund and indirect expenses of the underlying funds, which together can be higher than those incurred when investing directly in an underlying fund.

In this fund, you can see Russell's proven investment process in action. Russell aims for consistent, risk-managed performance by assembling a complete portfolio of bond, stock and real estate funds for moderate investors.

Russell's blended funds that help provide stability through exposure to investments in core bonds, but also help to provide return potential over more conservative selections. By allocating 40% of the fund to investments in U.S. large and small cap, non-U.S. and real estate securities, Russell aims to capture these asset classes' potential for higher returns. The fund also has a small allocation to a global equity fund to capture this additional investment strategy.

Allocation of Underlying Fund Assets
As of 06/30/2009

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.

*The fund's adviser, Russell Investment Management Company (RIMCo), may employ a proprietary "select holdings" strategy in which it exercises investment discretion for a portion of the fund's assets it determines not to allocate to the money managers. The strategy is designed to increase the fund's exposure to stocks that are viewed as attractive by multiple money managers. The use of the select holdings strategy will amplify the fund's security risk and potential underperformance. RIMCo performs other investment advisory functions for the funds.

Money managers listed are current as of 06/30/2009. 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 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.

² The fund's return and net asset value may be significantly affected by political or economic conditions and regulatory requirements in a particular country. Investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. Such securities may be less liquid and more volatile. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and political systems with less stability than in more developed countries.

³ Specific sector investing can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks to real estate investments. Fund investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation.

⁴ Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield ("junk") bonds or mortgage-backed securities, especially mortgage-backed securities with exposure to subprime mortgages.

Consult the  Prospectus.
Consult the  Statement of Additional Information.

Download the  Moderate Strategy Fund PDF.

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