SOURCE: Russell Investments

Russell Investments

September 26, 2014 11:38 ET

Emerging Equity Markets Led European and Developed Ex-US in 2014 Year-to-Date, According to Russell Indices

Russell Experts See a Combination of Positive Market Catalysts in the Region

SEATTLE, WA--(Marketwired - Sep 26, 2014) - The Russell Emerging Markets Index returned 13.7% in 2014 year-to-date as of 23 September, outpacing non-U.S. developed markets. Within the Index, country constituents the United Arab Emirates (+44%), India (+41.1%) and Thailand (+38%) have stood out in terms of year-to-date performance, while Greece (-4.2%) and Russia (-9.9%) have lagged in 2014.

Russell Investments Emerging Markets Portfolio Manager Gustavo Galindo:

"Emerging markets have benefitted from a combination of positive market catalysts thus far in 2014. Valuations in general for emerging markets are still cheaper than in the U.S. and other developed markets and, despite strong relative performance, emerging markets are still trading at a significant discount. Investor sentiment has continued to improve, with more investor dollars flowing into the region. Politics have played a role here as the recent India election results and possible unseating of the incumbent in Brazil are positive for these markets. And in terms of cycle, the political cycle for emerging markets continues to evolve to become more market friendly and, while earnings have been coming down for emerging markets companies, we see opportunity for price expansion as earnings begin to improve and counter lower investor expectations."

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

Russell Index Returns

Russell Index / Index Country Constituent 2014 YTD as of 9/23
Russell Emerging Markets Index 13.7%
Russell Developed Europe Index 7.1%
Russell Developed ex-US Index 8.7%
Russell 3000 Index 15.3%
Russell Emerging Markets Index - UAE 44.0%
Russell Emerging Markets Index - India 41.1%
Russell Emerging Markets Index - Thailand 38.0%
Russell Emerging Markets Index - Indonesia 37.0%
Russell Emerging Markets Index - Philippines 32.7%
Russell Emerging Markets Index - Turkey 17.3%
Russell Emerging Markets Index - Taiwan 15.2%
Russell Emerging Markets Index - Colombia 14.3%
Russell Emerging Markets Index - South Africa 13.2%
Russell Emerging Markets Index - Mexico 12.9%
Russell Emerging Markets Index - Brazil 12.9%
Russell Emerging Markets Index - China 11.2%
Russell Emerging Markets Index - Malaysia 9.7%
Russell Emerging Markets Index - Poland 8.4%
Russell Emerging Markets Index - Korea 8.1%
Russell Emerging Markets Index - Chile 1.1%
Russell Emerging Markets Index - Greece -4.2%
Russell Emerging Markets Index - Russia -9.9%

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 23, 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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