SOURCE: Russell Investments

Russell Investments

November 11, 2014 11:10 ET

Emerging Equity Markets Lead Developed Europe & US in 2014 YTD; Russell Indexes

Russell Experts See Positive Market Catalysts in Emerging Markets

SEATTLE, WA--(Marketwired - Nov 11, 2014) - The Russell Emerging Markets Index returned 13.1% in 2014 year-to-date as of November 6, outperforming developed markets in the U.S. and Europe, according to Russell Developed Europe Index (3.1%) and the Russell 3000® Index (10.6%).  

Russell Emerging Markets Index country constituents India (+49.7%), Thailand (+39.1%) and the Philippines (+35.8%) have stood out in terms of year-to-date performance, while Russia (-18.9%) and Greece (-19.2%) have lagged the Index in 2014 year-to-date as of November 6.

Russia (-8.2%) and Greece (-11.4%) have also been among the laggards in the fourth quarter as of November 6.

Russell Investments Emerging Markets Portfolio Manager Gustavo Galindo:

"Emerging markets have benefitted from a combination of positive market catalysts thus far in 2014. Despite strong year-to-date performance, emerging market valuations are still cheaper and these markets are still trading at a significant discount relative to the U.S. and other developed markets. Investor sentiment has continued to improve, with more investment flowing into the region, particularly in recent weeks. The Indian equity market has benefitted from recent election results and, despite Rouseff's narrow re-election in Brazil and interest rate hikes in Brazil and Russia, emerging markets continue to exhibit strong momentum."

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

Russell Index Returns

 
Russell Index / Index Country Constituent   4thQtr. a/o 11/6   2014 YTD as of 11/6
Russell Emerging Markets Index   0.3%   13.1%
Russell Developed Europe Index   -1.5%   3.1%
Russell 3000® Index   3.4%   10.6%
Russell Emerging Markets Index - India   5.9%   49.7%
Russell Emerging Markets Index - Thailand   -0.1%   39.1%
Russell Emerging Markets Index - Philippines   0.9%   35.8%
Russell Emerging Markets Index - Indonesia   0.2%   35.6%
Russell Emerging Markets Index - UAE   -9.2%   31.0%
Russell Emerging Markets Index - Turkey   6.1%   22.0%
Russell Emerging Markets Index - South Africa   5.7%   19.0%
Russell Emerging Markets Index - Taiwan   0.9%   15.8%
Russell Emerging Markets Index - China   4.7%   15.3%
Russell Emerging Markets Index - Mexico   0.2%   13.7%
Russell Emerging Markets Index - Colombia   -2.5%   10.6%
Russell Emerging Markets Index - Malaysia   -1.1%   9.9%
Russell Emerging Markets Index - Poland   -3.7%   4.8%
Russell Emerging Markets Index - Chile   1.5%   4.6%
Russell Emerging Markets Index - Korea   -4.9%   2.6%
Russell Emerging Markets Index - Brazil   -5.1%   2.5%
Russell Emerging Markets Index - Russia   -8.2%   -18.9%
Russell Emerging Markets Index - Greece   -11.4%   -19.2%
         

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 November 6, 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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