NMFN: IV, MF, Russell, RF, Russell Tax-Managed U.S. Large Cap Fund

Combining Tax-Managed Opportunities with Multi-Manager Benefits

June 30 , 2008

About the Fund
Managers in this fund are selected based on both their tax-sensitivity of their investment approach and their stock-selection abilities. Russell chooses managers that use many different investment styles, from looking for companies they believe have rapidly growing earnings to ones that are undervalued. Managers typically hold companies over a relatively longer investment horizon as long as a stock's fundamentals remain strong. As a result of the fund managers' longer term investment horizon, their approach typically avoids short-term capital gains, which should produce a more tax-efficient portfolio over time. To help reduce the incidence of wash sales within the fund, while still employing a multi-manager, multi-style approach, all of the fund's managers are informed of sales.

Investment Strategy

Seeks to provide long-term capital growth on an after-tax basis.
Invests in stocks traded in the U.S. market.
Selects managers with inherently tax-sensitive investment management approaches.
Core equity exposure incorporates market-oriented, growth and value styles.

Fund Highlights

Helps tax-sensitive investors by seeking to maximize after-tax returns.
Provides broad exposure to large capitalization stocks by blending managers that invest in diverse styles across the medium and large capitalization spectrum without the tax impact of a fund that buys and sells with no regard for taxes.

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


Sands Capital Management Inc.	18%	2003


Turner Investment Partners Inc.	15%	2005


Market-Oriented


J.P. Morgan Investment Management, Inc.	35%	1996


Value


Armstrong Shaw Associates, Inc.	17%	2007


Palisades Investment Partners, LLC	15%	2006


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.

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

	Sector Weightings				% of Total Equity

	Auto and Transportation				2.2
	Consumer Discretionary				14.1
	Consumer Staples				5.7
	Financial Services				15.5
	Health Care				14.8
	Integrated Oils				6.2
	Materials and Processing				3.5
	Other Energy				8.8
	Producer Durables				4.8
	Technology				15.7
	Utilities				5.9
	Miscellaneous				2.7

Due to rounding totals may not equal 100%.

	Top Ten Holdings				% of fund

	Google, Inc.				2.5
	Exxon Mobil Corp.				2.0
	Apple, Inc.				2.0
	Chevron Corp.				1.9
	Schlumberger, Ltd.				1.9
	International Business Machines Corp.				1.8
	National-Oilwell Varco, Inc.				1.8
	Cisco Systems, Inc.				1.8
	AT&T, Inc.				1.8
	United Technologies Corp.				1.5

					19.0

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



Tax Managed Large Cap Fund Class S	QTR	YTD	1 yr	5 yrs	10 yrs	Since Inception 10/07/96

Return Before Taxes	-1.94	-13.13	-12.73	6.87	2.20	6.40


Pre-Liquidation After Tax Returns^1,2	-1.94	-13.13	-12.82	6.75	2.02	6.21


Post-Liquidation After Tax Returns^2,3	-1.26	-8.54	-8.11	5.95	1.82	5.57

	Fund Fees and Expenses


	Annual Fund Operating Expenses

	Total		Net


	0.93%		0.93%

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	$522.2 million
Net Asset Value	$19.18



	Cusip	Ticker

Class C	782478309	RTLCX


Class S	782493720	RETSX

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 fund has 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 share 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 sales 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.

Consult the Prospectus.
Consult the Statement of Additional Information.

View Tax Managed Large Cap Fund in PDF format.

You will need the free Adobe Acrobat Reader to view a PDF.