SOURCE: Russell Investments

Russell Investments

September 05, 2014 11:24 ET

Emerging Equity Markets Gained Significant Ground in 2014 Year-to-Date, According to Russell Indices

Russell Experts See Shift in Investor Sentiment and Improving Momentum in the Region

SEATTLE, WA--(Marketwired - Sep 5, 2014) -  Emerging market equities have exhibited strong performance year-to-date, according to the Russell Emerging Markets Index. The Index has returned 16.7% year-to-date as of 2 September, with Index country constituents India (39.9%), UAE (39.6%) and Indonesia (37.2%) leading the way. Country constituents Russia (-11.5%) and Greece (-0.5%) have lagged within the Index year-to-date as of 2 September.

Russell Investments Emerging Markets Portfolio Manager Gustavo Galindo:

"At the beginning of the year, we saw low relative valuations coupled with a steady stream of negative news in emerging markets. In recent months, investor sentiment has stabilized and begun to improve, helping to outweigh continued geopolitical issues in key markets such as Russia. The Indian equity market has certainly benefitted from positive recent election outcomes. And, in Brazil, challengers are beginning to close the gap on the incumbent in next month's election, which has had a positive impact on equity market performance. Year-to-date as of 2 September, performance for the Russell Emerging Markets Index, while positive overall, is quite diverse across various country constituents, reinforcing the potential importance of a bottom-up, fundamental, active investment approach to emerging markets."

For more information on the Russell Indexes, go to the Russell Indexes website.

Russell Index Returns

Russell Index  / Index Country Constituent 2014 YTD a/o 9/2
Russell Emerging Markets Index 16.7%
Russell Emerging Markets Large Cap Index 16.7%
Russell Emerging Markets Midcap Index 16.4%
Russell Emerging Markets Small Cap Index 16.7%
Russell Emerging Markets Index -- India 39.9%
Russell Emerging Markets Index -- UAE 39.6%
Russell Emerging Markets Index -- Indonesia 37.2%
Russell Emerging Markets Index -- Thailand 33.5%
Russell Emerging Markets Index -- Philippines 29.8%
Russell Emerging Markets Index -- Brazil 29.2%
Russell Emerging Markets Index -- Turkey 25.1%
Russell Emerging Markets Index -- Colombia 21.0%
Russell Emerging Markets Index -- South Africa 18.8%
Russell Emerging Markets Index -- Taiwan 18.0%
Russell Emerging Markets Index -- Mexico 14.3%
Russell Emerging Markets Index -- China 12.9%
Russell Emerging Markets Index -- Malaysia 10.8%
Russell Emerging Markets Index -- Korea 10.5%
Russell Emerging Markets Index -- Poland 3.7%
Russell Emerging Markets Index -- Chile 2.4%
Russell Emerging Markets Index -- Greece -0.5%
Russell Emerging Markets Index -- Russia -11.5%

Source: Russell Investments. Returns are total returns (reflect reinvestment of dividends and distributions) and are denominated in euros.

The Russell Global Index measures the performance of the global equity market based on all investable equity securities, and is constructed to provide a comprehensive and unbiased barometer for the global segment. The Index includes more than 10,000 securities in 47 countries, and covers 98% of the investable global market. All securities in the Russell Global Index are classified according to size, region, country and sector; as a result the index can be segmented into more than 300 distinct benchmarks.

Russell Emerging Markets Index country constituents the Czech Republic, Hungary, Morocco and Peru do not meet external reporting requirements (less than 10 total company constituents and/or a company constituent with more than a 30% weight within the country). 

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index. 

Global equity involves risk associated with investments primarily in equity securities of companies located around the world, including the United States. International securities can involve risks relating to political and economic instability or regulatory conditions. 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.

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 US and longer-established non-US markets.

Opinions expressed by Mr. Galindo reflect market performance as of September 2, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance. 

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

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