Broadening Opportunities Through Tax-Aware Diversification

June 30, 2008

About the Fund
In this fund, Russell has created a diversified equity portfolio that seeks both after-tax return potential and global diversification. Russell invests the majority of the fund's assets in their Tax-Managed Large Cap Fund and their Tax-Managed Mid & Small Cap Fund, which employ tax-sensitive managers. For balance, Russell's added the Quantitative Equity Fund in which managers select stocks using quantitative investment models. Russell's International Securities Fund and Emerging Markets Fund provide a strategic measure of global equities for further return potential and diversification.

Investment Strategy

• Seeks to provide long-term, after-tax capital growth and increased after-tax return potential.
• Provides tax-managed exposure to both U.S. and non-U.S. large-, mid- and small-cap stocks.
• Offers an effective diversified core equity fund for tax-sensitive investors.

Fund Highlights

• Manages volatility by employing managers with a wide variety of investment strategies, including growth, value, "bottom-up" fundamental and "top-down" macro-economic.
• Takes advantage of market changes by blending managers with tax sensitive investment approaches in different equity sub-asset classes.

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.

Tax-Managed Global Equity¹ — Allocation of Underlying Fund Assets

Russell U.S. Quantitative Equity Fund²
Market Oriented
Aronson+Johnson+Ortiz, L.P.
Franklin Portfolio Associates, LLC
Goldman Sachs Asset Management, L.P.
Jacobs Levy Equity Management, Inc.
Russell Investment Management Company*

Russell International Developed Markets Fund^{2, 3}
Growth
Axiom International Investors, LLC
Marsico Capital Management, LLC
UBS Global Asset Management (Americas), Inc.
Wellington Management Company, LLP
Market-Oriented
AQR Capital Management, LLC
MFS Institutional Advisors, Inc.
Russell Investment Management Company*
Value
AllianceBernstein, L.P.
Altrinsic Global Advisors, LLC
Mondrian Investment Partners, Limited

Russell Emerging Markets Fund^2,4
Growth
T. Rowe Price International, Inc.
UBS Global Asset Management (Americas), Inc.
Market Oriented
Arrowstreet Capital, Limited Partnership
Genesis Asset Managers, LLP
Harding Loevner Management, L.P.
Value
AllianceBernstein, L.P.

Russell Tax-Managed U.S. Large Cap Fund⁵
Growth
Sands Capital Management, Inc.
Turner Investment Partners, Inc.
Market Oriented
J.P. Morgan Investment Management, Inc.
Value
Armstrong Shaw Associates, Inc.
Palisades Investment Partners, LLC

Russell Tax-Managed U.S. Mid & Small Cap Fund^{5, 6}
Growth
Transamerica Investment Management, LLC
Turner Investment Partners Inc.
Market-Oriented
Parametric Portfolio Associates LLC
Value
Chartwell Investment Partners
Netols Asset Management Inc.

*The Fund's adviser may employ a "select holding" strategy for a portion of the Fund's assets that 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 select holdings and strategy will amplify the Fund's security risk and potential underperformance.

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.

¹ The Tax-Managed Global Equity Fund is exposed to the specific risks of the underlying funds proportionate to their allocation. Investment in the fund involves direct expenses and indirect expenses of the underlying funds, which together can be higher than those incurred when investing directly in an underlying fund.

² Tax-efficiency is not a stated objective of the Quantitative Equity Fund, International Securities Fund and Emerging Markets Funds.

³ Non-U.S. markets entail different risks than those typically associated with U.S. markets, including currency fluctuations, political and economic instability, accounting changes, and foreign taxation. Securities may be less liquid and more volatile.

⁴ 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.

⁵Income from funds managed for tax efficiency may be subject to an alternative minimum tax and/or any applicable state and local taxes.

⁶ 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.

Annualized Returns as of June 30, 2008

Net annual operating expense ratio reflects the actual expenses expected to be borne by shareholders. At least until February 29, 2009, the Fund's annual direct and indirect fund-level operating expenses are capped at the greater of (a) a specified percentage of the Fund's average daily net assets on an annual basis or (b) an amount equal to the current "Acquired Funds Fees and Expenses" on an annual basis. The cap may not be terminated during the relevant period except at the Board's discretion. Details of the cap are in the current prospectus.

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 information 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.

¹Return after taxes on distributions. If the underlying funds have realized capital losses, the return after taxes on distributions and sale of fund shares may be higher than the return before taxes and the return after taxes on distributions. The calculation of return after taxes on distributions and sale of fund shares assumes that a shareholder has sufficient capital gains of the same character to offset any capital losses on a sale of fund shares and that the shareholder may therefore deduct the entire capital loss.

²After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

³Return after taxes on distributions and sale of fund shares. Returns after taxes on distributions may be the same as returns before taxes for the same period if there were no distributions for that period.

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.

Fund objectives, risks, charges, and expenses should be carefully considered before investing.

Consult the  Prospectus.
Consult the Statement of Additional Information.

Download the  Tax-Managed Global Equity Fund PDF.

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Effective September 8, 2008, the Quantitative Equity Fund merges into the Equity Q Fund (the Equity Q Fund changes its name to the Russell U.S. Quantitative Equity Fund on September 2, 2008) and the International Securities Fund merges into the International Fund (the International Fund changes its name to the Russell International Developed Markets Fund on September 2, 2008).

On September 2, 2008, Russell was added to the following fund names: Russell Emerging Markets Fund and Russell Tax-Managed Global Equity Fund.