Russell Index alerts
Russell Asia Pacific Index up 0.4% year-to-date as of May 21st; Philippines led individual countries within the index
May 23, 2012
- The Russell Asia Pacific Index returned 0.4% for the year-to-date as of May 21st. This compares to a (-0.7%) return for the Russell Developed Europe Index and a 5.7% return for the Russell 1000® Index for the same time period.
- Within the Russell Asia Pacific Index, the Philippines (17.1%) led all individual country returns for the year-to-date as of May 21st, followed by Thailand (14.9%), Singapore (10.7%) and New Zealand (6.0%).
- Within the Russell Asia Pacific Index, Japan (-2.3%) had the lowest individual country returns for the year-to-date as of May 21st, followed by Australia (-1.3%), Indonesia (-0.6%) and Korea (-0.5%).
"The Philippines and Thailand equity markets continue their strong run this year as demonstrated by the indexes," said Sarah Lien, Asia-based research analyst for Russell Investments. "With macro concerns creating overhang in US, European and Chinese markets, it seems investors may be looking for uncorrelated exposure in some of these smaller Asian markets. It’s interesting that Indonesia has actually posted a negative return YTD given this trend, which indicates that one cannot oversimplify the idiosyncrasies of investing in each country’s equity market."
Russell Global Index returns
| Index | 2012 YTD Returns as of May 21, 2012 |
|---|
| Russell Asia Pacific Index | 0.4% |
| Russell Developed Europe Index | -0.7% |
| Russell 1000® Index | 5.7% |
Russell Asia Pacific Index country returns
| Russell Asia Pacific Index Country | 2012 YTD Returns as of May 21, 2012 |
|---|
| Philippines | 17.1% |
| Thailand | 14.9% |
| Singapore | 10.7% |
| New Zealand | 6.0% |
| Taiwan | 4.6% |
| Hong Kong | 4.3% |
| India | 3.1% |
| Malaysia | 2.0% |
| China | 1.1% |
| Korea | -0.5% |
| Indonesia | -0.6% |
| Australia | -1.3% |
| Japan | -2.3% |
Source: Russell Investments
Opinions expressed by Ms. Lien reflect market performance and observations as of May 21st, 2012 and are subject to change at any time based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
CORP-7644
Decreasing the Russell Index turnover cost
Methodology enhancements have steadily decreased price pressure at annual reconstitution
May 23, 2012
Over the past twelve years, Russell Indexes has steadily decreased the turnover percentage, or the number of index additions and deletions, around its annual reconstitution. While the core of its objective and transparent methodology has not changed since the indexes' inception in 1984, a number of new measures have been introduced to alleviate price pressure around the annual rebalancing.
Russell Indexes draws on Russell's unique insight into global capital markets and multi-asset portfolio construction and implementation to design benchmarks offering exposure to the true performance of different segments and asset classes of the market. In particular, three adjustments to the Russell Indexes methodology in recent years have helped to significantly decrease turnover at reconstitution, ensuring that each index remains an accurate reflection of an individual market cap tier.
- Quarterly IPO Additions - IPOs are now added to the Russell Indexes once every quarter rather than just at reconstitution, and a company that is eligible is added after a minimum of one month seasoning.
- Provisional and Legacy Indexes - Passive fund managers may now make their portfolio transitions on any day over a two month period, one month prior or one month following the annual reconstitution, based on performance figures provided by Russell.
- Capitalization Banding - Implementation of a /-2.5% membership band around market capitalization breakpoints now reduces the number of securities moving between small and large-cap segments at reconstitution, without distorting cap tier performance.
The Russell Indexes methodology around reconstitution has helped to spread any potential arbitrage, or opportunistic trading, over a longer period of time than just at reconstitution, making the transparency of index changes through Russell's rules-based mechanism desirable for passive indexers. Academics have actually argued that Russell Index's transparent and predictable approach to annual rebalancing helps to lessen the potential impact of arbitragers and reduce short-term volatility as index changes can be anticipated days or months earlier.¹
Russell has seen the turnover rates of the Russell Indexes around reconstitution decrease in recent years.² The indexes remain market efficient, able to be tracked and duplicated readily to act as a performance standard for active managers and a replicable vehicle for passive investing strategies. The Russell Family of Indexes currently capture 68.2% of U.S. institutional market share, more than any other index family.
The annual Russell Indexes reconstitution final list will be posted to the Russell Reconstitution website on June 25, 2012.
1. Dr. Antti Petajisto, "The Index Premium and Its Hidden Cost for Index Funds," NYU Stern School of Business, April 8, 2010
2. Turnover percentage for the Russell 2000® Index peaked at 33.00% in June 2000, its average over 5 years prior to capitalization banding implementation in June 2007 was 16.40% and its average since banding implementation in June 2007 is 9.05%. The Russell 2000 Growth Index turnover percentage peaked at 46.58% in June 2000, its average over 5 years prior to capitalization banding in June 2007 was 31.50% and its average since the banding implementation in June 2007 is 24.40%.
CORP-7638
Russell Developed Europe Index YTD market returns: One of the PIIGS got away
May 17, 2012
Performance for country constituents of the Russell Developed Europe Index through May 14th, 2012:
- Ireland leads all country constituents within the Russell Developed Europe Index for 2012 as of May 14th, with a 13.3% return, followed by Germany (10.1%) and the United Kingdom (7.4%).
- Ireland is a very notable standout in year-to-date performance among the so-called "PIIGS" of Europe, or Portugal, Italy, Ireland, Greece and Spain. The rest of the PIIGS have seen the weakest returns year-to-date within the Index, with Portugal at (-5.2%), followed by Italy (-7.3%), Greece (-8.7%) and Spain the worst performer at (-18.4%).
- Within the Ireland constituent of the Russell Developed Europe Index, the Technology sector has led all sectors year-to-date with a 99.1% return, followed by the Consumer Discretionary (22.1%) and Consumer Staples (21.4%) sectors.
"Amidst all the anxiety over the future of Greece, Ireland has emerged as a bright spot among the PIIGS thus far in 2012," said Russell indexes senior research director Tom Goodwin. "A key driver for Ireland's equity market in 2012 has been technology stocks, as illustrated by the performance of its Technology sector year-to-date within the Index."
Russell Developed Europe Index – 2012 YTD market performance (a/o May 14th)
| Russell Developed Europe Index Constituent | YTD-2012 |
|---|
| Austria | 7.2% |
| Switzerland | 4.0% |
| Germany | 10.1% |
| Spain | -18.4% |
| Finland | 3.2% |
| France | 0.6% |
| United Kingdom | 7.4% |
| Greece | -8.7% |
| Eire | 13.3% |
| Italy | -7.3% |
| Luxembourg | -2.6% |
| Netherlands | -2.0% |
| Norway | 6.2% |
| Portugal | -5.2% |
| Sweden | 5.5% |
Russell Developed Europe Index, Ireland – 2012 YTD sector performance (a/o May 14th)
| Ireland Sector | YTD Performance as of May 14th |
|---|
| Technology | 99.2% |
| Financial Services | 10.1% |
| Health Care | -3.3% |
| Consumer Discretionary | 22.1% |
| Consumer Staples | 21.4% |
| Energy | 3.8% |
| Materials & Processing | 0.2% |
| Producer Durables | 11.0% |
Source: Russell Investments
Returns were not included for Denmark, Iceland and Belgium due to these markets containing a limited number of constituents and not meeting reporting requirements.
Opinions expressed by Mr. Goodwin reflect market performance and observations as of May 14, 2012 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
Index returns presented are euro-denominated.
CORP-7631
Russell Greater China Index: Spring slowdown
May 17, 2012
- After getting off to a strong start in 2012, with returns of 10.1% for January and 7.9% for February, the Russell Greater China Index has seen a Spring slowdown, returning (-4.8%) in March, (-0.3%) in April and is off (-5.8%) for May month-to-date as of May 14th.
- Despite the negative performance in recent months, the Index is still positive year-to-date, with a 6.4% return. Year-to-date as of May 14th within the Russell Greater China Index, the lead sector performers are Technology (13.1%), Healthcare (8.0%) and Consumer Discretionary (7.6%).
- Within the Index, for May month-to-date as of May 14th, the Energy sector (-10.5%) is off the most, followed by the Consumer Discretionary (-7.4%) and Producer Durables (-7.0%) sectors.
- Interestingly, Europe has seen a similar Spring slowdown as demonstrated by the Russell Developed Europe Index, with the broad index showing negative returns in March, April and May month-to-date with all sectors negative so far in May.
"As shown by the Russell Greater China Index, stocks in the Greater China region — Hong Kong, China-H and Taiwan — have taken a breather after a strong run in the early part of the year," said Sarah Lien, Asia-based senior research analyst for Russell Investments. "There appear to be mixed signals in this market: positive developments in terms of property values yet the Chinese government's lowered growth target cannot be ignored. Europe, too, has followed a similar pattern as macro concerns have heightened over the last few months to expunge some of the early gains. It appears that macro headwinds continue to weigh upon both markets."
Russell Greater China Index returns
| Russell Index / Index Sector | Jan-12 | Feb-12 | Mar-12 | Apr-12 | May MTD
-a/o 5/14 | YTD-2012 |
|---|
| Greater China Index | 10.1% | 7.9% | -4.8% | -0.3% | -5.8% | 6.4% |
| Technology | 12.8% | 8.5% | 0.5% | -4.5% | -3.7% | 13.1% |
| Financial Services | 12.3% | 8.0% | -9.1% | 2.8% | -6.6% | 5.8% |
| Utilities | 0.3% | 4.5% | -0.3% | 0.9% | -1.3% | 3.9% |
| Health Care | 7.4% | 8.2% | -0.2% | -3.1% | -3.9% | 8.0% |
| Consumer Discretionary | 8.6% | 11.0% | -3.8% | 0.1% | -7.4% | 7.6% |
| Consumer Staples | 1.3% | 4.3% | 0.8% | 1.8% | -2.4% | 5.9% |
| Energy | 12.9% | 5.3% | -8.4% | 2.8% | -10.5% | 0.2% |
| Materials & Processing | 9.8% | 10.2% | -7.6% | -3.3% | -6.4% | 1.2% |
| Producer Durables | 10.7% | 8.6% | -4.5% | -1.3% | -7.0% | 5.4% |
Russell Developed Europe Index returns
| Russell Index / Index Sector | Jan-12 | Feb-12 | Mar-12 | Apr-12 | May MTD
-a/o 5/14 | YTD-2012 |
|---|
| Developed Europe Index | 5.4% | 6.6% | -0.6% | -1.9% | -6.3% | 2.7% |
| Technology | 7.2% | 10.2% | 2.6% | -4.2% | -6.7% | 8.3% |
| Financial Services | 10.1% | 7.5% | -0.8% | -6.2% | -7.3% | 2.0% |
| Utilities | -0.7% | 3.5% | 0.2% | -4.0% | -3.1% | -4.2% |
| Health Care | -0.5% | 3.7% | 1.8% | 1.9% | -4.1% | 2.7% |
| Consumer Discretionary | 10.6% | 7.9% | 0.6% | -0.9% | -6.2% | 11.7% |
| Consumer Staples | -1.1% | 7.2% | 2.3% | 1.0% | -3.1% | 6.1% |
| Energy | 2.7% | 7.0% | -4.8% | -1.0 | -8.8% | -5.5% |
| Materials & Processing | 11.4% | 6.4% | -3.4% | -0.4% | -9.4% | 3.3% |
| Producer Durables | 8.3% | 7.6% | -0.6% | -1.9% | -7.5% | 5.2% |
Source: Russell Investments
Opinions expressed by Ms. Lien reflect market performance and observations as of May 14th, 2012 and are subject to change at any time based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
CORP-7630
Russell 3000® Index keeps up with the speed of technology
Quarterly IPO process ensures eligible tech stocks are included within four months
May 16, 2012
The Technology sector of the Russell 3000 Index, which returned 11.6% year-to-date as of May 15th, includes many of the well-publicized technology Initial Public Offerings (IPOs) of the past year. Through Russell's transparent methodology, companies such as LinkedIn, Pandora, Groupon and Zynga were added to their respective Russell Index family cap-tier as of April 2012. The Russell Indexes' rules-based methodologies seek to identify and include eligible IPOs worldwide on a quarterly basis to comprehensively and objectively measure the investible equity universe.
Russell's systematic IPO process, added to the Russell Index methodology in 2004, allows for the Russell Indexes to precisely reflect the returns of technology companies as they go public, within four months of their IPOs. In the last year, Russell has added 23 technology IPOs during reconstitution and the quarterly IPO additions.
While the first, third and fourth quarter IPOs are added to the Russell Indexes around the last day of the last month in the quarter, second quarter IPOs are added to the Russell Indexes at the annual Russell Index reconstitution in June. Eligible technology companies that have gone public between March 1, 2012 and May 31, 2012 will be added during the reconstitution process completed June 22, 2012.
Russell Indexes draws on Russell's unique insight into global capital markets and multi-asset portfolio construction and implementation to design benchmarks that offer exposure to the true performance of different segments and asset classes of the market. In order to be eligible for inclusion in the Russell 3000 Index, IPOs must be priced and traded by the final trading day of the last month in the quarter. Each potential addition must also have a larger total market capitalization than the market-adjusted smallest company in the Russell 3000 Index as of the latest June reconstitution, which is currently $130 million. Assuming all eligibility requirements are met, IPOs will then be placed in the appropriate Russell market capitalization-based index.
Recent Russell 3000 Index Technology IPOs
| Second Quarter 2011 (Reconstitution) | Third Quarter 2011 | Fourth Quarter 2011 | First Quarter 2012 |
|---|
Active Network
Cornerstone OnDemand
Ellie Mae
Friendfinder Networks
LinkedIn
Responsys
Freescale Semiconductor | Bankrate
Carbonite
Homeaway
Pandora Media
Zillow | Angies List
Groupon
Imperva
Ubiquiti Networks | AVG Techologies
Bazaarvoice
BrightCove
FX Alliance
Guidewire Software
Jive Software
Zynga |
CORP-7618
Russell Developed Europe Index: Markets fall in wake of European elections
May 10, 2012
The UK, France and Greece within the Russell Developed Europe Index all experienced losses in the two trading days following their respective elections this month. And year-to-date as of May 8th, country constituents within the Russell Developed Europe Index have demonstrated a wide range of performances, ranging from 13.3% for Ireland to -16.1% for Spain.
Performance for country constituents of the Russell Developed Europe Index through May 8th, 2012:
- The United Kingdom, where the Conservative Party suffered heavy losses in local elections, lost -2.9% in the two trading days since the Thursday election* according to the Russell Developed Europe Index. However, year to date as of May 8th the UK country constituent within the Index returned 7.5%, nearly four percent above the Russell Developed Europe Index for the same time period.
- France, which has elected a new president Francois Holland, lost -0.9% in the two trading days since the Sunday election results according to the Russell Developed Europe Index. Year to date as of May 8th the France country constituent within the Index returned 2.0%, nearly three percentage points below the Russell Developed Europe Index.
- Greece, where parliamentary elections last weekend were met with political protests and instability, lost -9.6% in the two trading days since the Sunday election according to the Russell Developed Europe Index. To date this year as of May 8th, the Greece country constituent within the Index returned -3.5%, more than eight percentage points below the Russell Developed Europe Index.
"The European-wide revolt against austerity is likely to see some compromise extracted from Germany and the like-minded core. However, we do not know whether the compromises will be helpful or harmful or just mere gestures to keep the project from falling over" said Russell Europe’s head of capital markets John Velis.
"While meteorological indications in London suggest otherwise, we will probably be in for another hot summer in the markets as the results of these European elections and follow-up political events reveal themselves. Add in the question mark around yet another possible stumble in the US and it is hard to get excited about the risk trade."
Russell Developed Europe Index country returns - 2012 YTD
| Russell Index/Country | 2012 returns
a/o May 8, 2012 |
|---|
| Russell Developed Europe Index | 4.9% |
| Germany | 10.2% |
| Ireland | 13.3% |
| Austria | 12.9% |
| Sweden | 8.1% |
| Norway | 6.7% |
| United Kingdom | 7.5% |
| Finland | 5.6% |
| Greece | -3.5% |
| Switzerland | 6.1% |
| France | 2.0% |
| Luxembourg | -0.9% |
| Netherlands | -1.5% |
| Italy | -5.4% |
| Portugal | -3.2% |
| Spain | -16.1% |
Source: Russell Investments.
* Equity markets were closed in the UK on Monday 7th May due to a bank holiday
Returns were not included for Denmark, Iceland and Belgium due to these markets containing a limited number of constituents and not meeting reporting requirements.
Opinions expressed by Mr. Velis reflect market performance and observations as of May 8, 2012 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
Index returns presented are euro-denominated.
CORP-7616
Asian Defensive & Dynamic stocks performed equally for 2012 year-to-date as measured by the Russell Asia Pacific Defensive & Dynamic Indexes as of 5/7
May 10, 2012
- The Russell Asia Pacific Index returned 7.3% for the year-to-date as of May 7th, with equal performance to the Russell Asia Pacific Dynamic Index (7.3%) and the Russell Asia Pacific Defensive Index (7.3%) for the same time period.
- Year-to-date performance tells a different story from the first quarter of 2012, in which the Russell Asia Pacific Index returned 9.4%, with the Russell Asia Pacific Dynamic Index (11.6%) outperforming the Russell Asia Pacific Defensive Index (6.7%).
"The market seems to have shifted towards more of a risk-off mode as reflected by recent Russell Asia-Pacific Index returns," said Sarah Lien, Asia-based senior research analyst for Russell Investments. "Dynamic stocks have pulled back quite a bit relative to Defensive stocks when comparing first quarter to 2012 YTD performance. Despite the signs pointing to a risk-off environment, the spread between Dynamic and Defensive stocks is currently non-existent, and it is unclear how the rest of the year will unfold given that factor trends have not been persistent."
Russell Asia Pacific Index Returns
| Russell Index | First Qtr
2012 Returns | 2012 YTD Returns
a/o May 7, 2012 |
|---|
| Russell Asia Pacific Index | 9.4% | 7.3% |
| Russell Asia Pacific Dynamic Index | 11.6% | 7.3% |
| Russell Asia Pacific Defensive Index | 6.7% | 7.3% |
Source: Russell Investments.
Opinions expressed by Ms. Lien reflect market performance and observations as of May 7th, 2012 and are subject to change at any time based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
CORP-7613
Russell 1000 & Russell 2000 Indexes: U.S. large caps outperformed small caps, Financial Services, Consumer Discretionary & Technology sectors led YTD & Energy sector lagged YTD & MTD as of 5/8
May 9, 2012
- The U.S. Large Cap Russell 1000® Index returned 9.5% year-to-date as of May 8th, as the Financial Services (15.7%) and Technology (14.8%) sectors outperformed all other sectors. Alternatively, the Energy sector performed worst within the index, with a -1.8% return YTD and a -4.5% return thus far in May as of May 8th.
- The U.S. Small Cap Russell 2000® Index returned 7.5% year-to-date as of May 8th, driven by strong performances in the Consumer Discretionary (11.2%) and Financial Services (11.0%) sectors. The Energy sector also performed worst within the index, with a -3.0% return YTD and a -7.4% return thus far in May as of May 8th.
- Both Indexes reflect losses for May as all sectors had negative returns through May 8, 2012.
According to Tom Goodwin, senior research director for Russell Indexes, "Despite recent global market volatility, U.S. Large caps, especially technology and financials, have benefited from strong corporate earnings and a growing economy, albeit slow growing, thus far in 2012."
Russell 1000 & Russell 2000 Index returns
| Russell Index | May MTD
a/o May 8, 2012 | YTD 2012
a/o May 8, 2012 |
|---|
| Russell 1000 | -2.5% | 9.5% |
| Russell 2000 | -2.9% | 7.5% |
| Russell 1000 Index sectors | May MTD
a/o May 8, 2012 | YTD 2012
a/o May 8, 2012 |
|---|
| Financial Services | -2.2% | 15.7% |
| Technology | -3.6% | 14.8% |
| Consumer Discretionary | -2.9% | 13.3% |
| Producer Durables | -2.5% | 8.3% |
| Materials & Processing | -3.3% | 8.1% |
| Health Care | -0.9% | 8.9% |
| Consumer Staples | -0.4% | 6.0% |
| Utilities | -0.3% | 2.9% |
| Energy | -4.5% | -1.8% |
| Russell 2000 Index sectors | May MTD
a/o May 8, 2012 | YTD 2012
a/o May 8, 2012 |
|---|
| Consumer Discretionary | -4.2% | 11.2% |
| Health Care | -2.1% | 10.6% |
| Financial Services | -0.6% | 11.0% |
| Materials & Processing | -3.6% | 6.9% |
| Producer Durables | -2.9% | 6.7% |
| Technology | -4.8% | 4.6% |
| Consumer Staples | -0.5% | 5.7% |
| Energy | -7.4% | -3.0% |
| Utilities | -1.3% | -3.2% |
Source: Russell Investments.
Opinions expressed by Mr. Goodwin reflect market performance and observations as of May 8, 2012 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
CORP-7612
Russell Frontier & Emerging Markets Indexes: Vietnam, Pakistan, Egypt & Turkey strong performers year-to-date as of April 30th
May 3, 2012
- The Russell Frontier Index returned 5.7% year-to-date as of April 30, 2012, while the Russell Emerging Markets Index returned 13.2% for the same time period. Both indexes are positive year-to-date after exhibiting negative performance in 2011.
- Within the Russell Frontier Index, after 2011 when all but one country constituent had negative performance, 75% of countries had positive performance year-to-date as of April 30, with Vietnam, Pakistan and Kenya leading.
- Within the Russell Emerging Markets Index, after 2011 when more than 85% of country constituents had negative performance, more than 90% of countries had positive performance year-to-date as of April 30, with Egypt, Turkey and Thailand leading.
- "The positive returns we’ve witnessed this year across many of the emerging and frontier markets is a marked change from last year," said Sarah Lien, Senior Research Analyst for Russell Investments. "Vietnam, for instance, was one of 2011's worst performers but has rebounded very strongly year-to-date. Egypt and Turkey have also posted strong returns in 2012 after geo-political concerns appear to have weighed on these stock markets last year."
Russell Index returns
| Russell Index | 2012 YTD Returns
a/o Apr 30, 2012 | 2011 returns |
|---|
| Russell Frontier Index | 5.7% | -20.7% |
| Russell Emerging Markets Index | 13.2% | -19.2% |
Russell Frontier Index country returns
| Russell Frontier Index Country | 2012 YTD Returns
a/o Apr 30, 2012 | 2011 returns |
|---|
| Vietnam | 35.1% | -31.8% |
| Pakistan | 24.2% | -12.0% |
| Kenya | 21.4% | -29.5% |
| Nigeria | 16.1% | -26.1% |
| Ukraine | 12.5% | -41.7% |
| Qatar | 6.8% | 7.2% |
| Oman | 5.3% | -10.8% |
| Tunisia | 4.3% | -11.5% |
| Kuwait | 1.2% | -12.9% |
| Bangladesh | -1.6% | -41.8% |
| Sri Lanka | -16.5% | -25.2% |
| Argentina | -16.9% | -25.9% |
Russell Emerging Markets Index country returns
| Russell Emerging Markets Index Country | 2012 YTD Returns
a/o Apr 30, 2012 | 2011 returns |
|---|
| Egypt | 35.2% | -45.3% |
| Turkey | 27.1% | -35.1% |
| Thailand | 26.9% | -4.7% |
| Philippines | 26.3% | 2.9% |
| Columbia | 22.7% | -12.8% |
| United Arab Emirates (UAE) | 22.3% | -15.5% |
| Peru | 18.9% | -13.7% |
| Chile | 18.4% | -22.3% |
| Poland | 16.3% | -30.4% |
| Mexico | 15.4% | -13.2% |
| India | 15.2% | -37.6% |
| Russia | 14.8% | -20.5% |
| China | 13.9% | -20.8% |
| Korea | 13.6% | -11.0% |
| South Africa | 12.8% | -14.4% |
| Greece | 10.7% | -56.7% |
| Taiwan | 10.5% | -22.2% |
| Malaysia | 8.6% | 0.9% |
| Brazil | 7.8% | -20.1% |
| Indonesia | 6.6% | 4.4% |
| Portugal | -1.8% | -27.5% |
| Morocco | -4.0% | -14.5% |
Source: Russell Investments.
Opinions expressed by Ms. Lien reflect market performance and observations as of April 30th, 2012 and are subject to change at any time based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
Within the Russell Emerging Markets Index, individual performance for Israel, Hungary and the Czech Republic are not reportable due to a limited number of constituents.
Within the Russell Frontier Markets Index, individual performance for Zambia, Trinidad & Tobago, Tanzania, Slovenia, Slovakia, Serbia, Romania, Papua New Guinea, Mauritius, Malta, Macedonia, Lithuania, Kyrgyzstan, Kazakhstan, Jordan, Jamaica, Ghana, Gabon, Estonia, Cyprus, Croatia, Bulgaria, Botswana and Bahrain are not reportable due to a limited number of constituents.
CORP-7596
Russell Developed Europe Index: Approaching European elections & market performance
May 2, 2012
Country constituents within the Russell Developed Europe Index have demonstrated a wide range of performances year-to-date as of April 30th, stretching from 20.0% for Denmark to (-16.5%) for Spain, as elections approach later this week in France, Greece and the United Kingdom.
Year-to-date performance for the constituents of the Russell Developed Europe Index through April 30th, 2012:
- The United Kingdom, where the London Mayoral, local government and other elections are being held on Thursday, returned 9.6% year-to-date as of April 30th, more than two percent above the Russell Developed Europe Index for the same time period.
- France, which will see the second and final round of the presidential election this weekend, returned 4.2% year-to-date as of April 30th, more than three percentage points below the Russell Developed Europe Index for the same time period.
- Greece, which is preparing for parliamentary elections this weekend, returned 8.6% year-to-date as of April 30th, more than a percentage point above the Russell Developed Europe Index for the same time period.
"Despite attempts by the ECB to solve problems within the Eurozone, concerns still remain over countries such as Spain and Portugal and even the UK as it slipped back into recession as governments' struggle to strike a balance between austerity and producing economic growth," said James Barber, portfolio manager at Russell Investments. "With markets in the UK, Greece and France up to date this year, we will watch with interest to see how they respond to the election results or whether this has already been priced in. The various political and economic pressures on markets lead to such volatility and uncertainty that investors may benefit from multi asset portfolios using a range of asset classes and strategies."
Russell Developed Europe Index country returns – 2012 YTD
| Russell Index / Country | 2012 Returns
(a/o Apr 30, 2012) |
|---|
| Russell Developed Europe Index | 7.5% |
| Denmark | 20.0% |
| Germany | 15.4% |
| Ireland | 15.3% |
| Austria | 14.6% |
| Belgium | 14.0% |
| Sweden | 11.9% |
| Norway | 11.6% |
| United Kingdom | 9.6% |
| Finland | 9.2% |
| Greece | 8.6% |
| Switzerland | 8.5% |
| France | 4.2% |
| Luxembourg | 3.3% |
| Iceland | 2.2% |
| Netherlands | 1.0% |
| Italy | -1.2% |
| Portugal | -3.7% |
| Spain | -16.5% |
Source: Russell Investments.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal.
Diversification does not assure a profit and does not protect against loss in declining markets.
Opinions expressed by Mr. Barber reflect market performance and observations as of April 30, 2012 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
Index returns presented are euro-denominated.
CORP-7590
Russell 3000 & Russell Developed Europe Indexes: Technology & Financial Service sectors show strongest losses in April; Utilities diverge
May 1, 2012
- The Russell 3000®: Index returned -0.7% in April, but is still up 12.1% year-to-date as of April 30th. The Russell Developed Europe Index was also down in April, with a -1.9% return, and is still up 9.6% year-to-date as or April 30th.
- Within both Indexes, the Technology & Financial Services sectors had the weakest performance in April.
- Within the Russell 3000 Index, the Utilities sector had the strongest performance for the month of April, with a 2.9% return. Conversely, within the Russell Developed Europe Index, Utilities was one of the weakest sectors for the month of April, with a -4.0% return.
- According to Tom Goodwin, senior research director for Russell Indexes, "We've seen elevated uncertainty in the European markets in recent weeks driven by political events, as is illustrated by performance of the indexes. This uncertainty in European markets may continue this week. Today, we saw very large May Day rallies, but the largest market concern appears to be the outcome of the French election on Sunday."
| Russell Index / Sector | YTD 2012
(a/o Apr 30) | Jan '12 | Feb '12 | Mar '12 | Apr '12 |
|---|
| Russell 3000 Index | 12.1% | 5.0% | 4.2% | 3.1% | -0.7% |
| Technology | 18.5% | 8.5% | 6.8% | 5.0% | -2.6% |
| Financial Services | 17.6% | 7.1% | 4.6% | 6.3% | -1.3% |
| Utilities | 2.9% | -3.0% | 1.9% | 1.2% | 2.9% |
| Health Care | 10.2% | 4.1% | 1.7% | 4.2% | -0.1% |
| Consumer Discretionary | 16.6% | 6.1% | 4.9% | 4.2% | 0.6% |
| Consumer Staples | 6.5% | -1.6% | 4.5% | 3.0% | 0.5% |
| Energy | 3.0% | 1.6% | 6.0% | -3.4% | -1.0% |
| Materials & Processing | 11.7% | 11.3% | 0.4% | 0.9% | -1.0% |
| Producer Durables | 11.0% | 7.6% | 2.7% | 1.4% | -0.9% |
| Russell Index / Sector | YTD 2012
(a/o Apr 30) | Jan '12 | Feb '12 | Mar '12 | Apr '12 |
|---|
| Russell Developed Europe Index | 9.6% | 5.4% | 6.6% | -0.6% | -1.9% |
| Technology | 16.1% | 7.2% | 10.2% | 2.6% | -4.2% |
| Financial Services | 10.0% | 10.1% | 7.5% | -0.8% | -6.2% |
| Utilities | -1.1% | -0.7% | 3.5% | 0.2% | -4.0% |
| Health Care | 7.1% | -0.5% | 3.7% | 1.8% | 1.9% |
| Consumer Discretionary | 19.1% | 10.6% | 7.9% | 0.6% | -0.9% |
| Consumer Staples | 9.5% | -1.1% | 7.2% | 2.3% | 1.0% |
| Energy | 3.6% | 2.7% | 7.0% | -4.8% | -1.0% |
| Materials & Processing | 14.1% | 11.4% | 6.4% | -3.4% | -0.4% |
| Producer Durables | 13.6% | 8.3% | 7.6% | -0.6% | -1.9% |
Source: Russell Investments.
Opinions expressed by Mr. Goodwin reflect market performance and observations as of May 1, 2012 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
CORP-7588
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