Enhanced Blend of Small-Cap Managers

June 30, 2008

About the Fund
In this small cap fund, Russell chooses managers that invest using many different investment styles, from looking for companies they believe have rapidly growing earnings to ones that are undervalued. For example, a growth manager and a value manager each use distinct investment processes. One may maintain a concentrated portfolio of companies focusing on earnings growth momentum, resulting in higher risk relative to the benchmark. The other may use a quantitative process to pick stocks and manage the portfolio, which keeps its risk exposure close to the benchmark. When combined, all the managers within this fund provide a less volatile investment approach than offered by any single one of the underlying managers on a stand-alone basis.

Investment Strategy

• Seeks to provide long-term capital growth.
• Emphasis on small-cap stocks.
• Specialty fund offering additional diversification.

Fund Highlights

• May provide lower risk than many small-cap funds by blending multiple managers with very different investment styles, allowing for more consistency.
• Blended exposure to multiple managers using growth and value styles.

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.

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.

Due to rounding totals may not equal 100%.

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.

Annualized Returns in Percentages as of June 30, 2008

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 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.

View  Special Growth Fund (52K) in PDF format.

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