News
Russell Global Index Adds 1,242 Stocks
TACOMA, Wash.-(Business Wire)-July 3, 2008 - Russell Investments has restocked the Russell Global Index with 1,242 newly-added companies worldwide from 62 countries. The United States ranked on top with 279 additions, while five continents are represented in the list of the top 10 countries that included India (with 93 additions), Canada (89), Taiwan (89), Australia (51), China (43), United Kingdom (41), South Korea (36) Russia (34) and Brazil (32).
The list of additions also extends the reach of the Russell Global Index to include companies from five additional emerging markets for the first time: Kazakhstan, Qatar, Tunisia, Ukraine and Vietnam. Addition to the Russell Global Index means automatic inclusion into several sub-component indexes. For example, a small-cap stock in Vietnam also is added to the Russell Emerging Markets Index, Russell Asia Index, Russell Asia Pacific Index and Russell Global Small Cap Index, among others, as well as the related value or growth style indexes.
This list of global additions resulted from Russell's annual index reconstitution process, which completely and objectively realigns every Russell index simultaneously to reflect current market realities.
"The annual reconstitution process is an essential part of providing truly representative equity benchmarks for investors," said Stephen Wood, senior portfolio strategist for Russell. "This process captures the changing fortunes of stocks worldwide and recalibrates the indexes to reflect those changes. This is important for investors who want to better gauge the performance of their stock portfolios or retirement plans."
This year's list of additions for the Russell Global Index includes 295 stocks in the materials and processing sector as well as 220 financial services and 162 consumer discretionary firms. The new members include 47 initial public offerings that came to market during the second quarter, including eight in China and five in India.
The Russell Global Index, which covers 98% of the investable global market and includes more than 10,000 securities in 70 countries, currently has a market-capitalization range of US$468 billion (Exxon Mobil) to US$167 million (NVE Corp., which is based in Minnesota, USA) and a median market capitalization of US$32 billion.
Membership in Russell's equity indexes—widely used as benchmarks for passive and active investment strategies—is determined by objective rules, such as market capitalization rankings. Accurate benchmarks are an integral part of Russell's ongoing process to monitor more than 8,000 investment manager products worldwide for Russell's US$213 billion active investment management business. Russell's U.S. indexes currently have US$4.4 trillion in assets benchmarked against them and account for an industry-leading 58.5% of institutional benchmarked products.
The membership list is available at http://www.russell.com/Indexes/membership/Reconstitution/default.asp.
About Russell
Russell Investments provides strategic advice, world-class implementation, state-of-the-art performance benchmarks and a range of institutional-quality investment products. Russell has more than $213 billion in assets under management as of March 31, 2008, and serves individual, institutional and advisor clients in more than 40 countries. Founded in 1936, Russell is a subsidiary of The Northwestern Mutual Life Insurance Company.
Russell Investments is the owner of the trademarks, service marks and copyrights related to its indexes.
Russell Indexes are unmanaged and cannot be invested in directly.
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