SOURCE: Russell Investments

Russell Investments

August 08, 2014 09:34 ET

Emerging & Frontier Markets Gain While Developed Lose Ground Amid Rising Geopolitical Tensions: Russell Global Indices

SEATTLE, WA--(Marketwired - Aug 8, 2014) -  Despite rising geopolitical tensions in July and August, including the intensifying crisis in the Ukraine and increased sanctions against Russia as well as the ongoing Israeli-Hamas conflict in Gaza, emerging and frontier equity market indices have continued to register positive performance since 1 July through 6 August. This compares with flat to negative performance since 1 July through 6 August for European, U.S. and global developed equity market indices.

Russell strategists suggest that investors keep a watchful eye on geopolitical catalysts that can trigger fear and market volatility, while maintaining a focus on desired investment outcomes. 

Russell Investments Global Head of Investment Strategy Andrew Pease commented:

"As we elaborated in our mid-year outlook report, our models and investment strategy process gives us a pro-equity bias through 2014. That means we think any pull-back from current market positions will likely offer a buying opportunity, so we think recent world events needn't shake your focus on your investing goals."

To hear more from Andrew Pease, visit his most recent Russell Blog post. For more information on the Russell Indexes, go to the Russell Indexes website.

Russell Index Returns

Russell Index   3Q 2014 as of
August 6
  First Half 2014   2014 YTD as of August 6
Russell Developed Europe Index   -3.6%   6.9%   3.0%
Russell Developed ex-US Index   -1.6%   6.9%   5.2%
Russell 3000® Index   0.08%   7.6%   7.7%
Russell Emerging Markets Index   3.3%   7.5%   11.1%
Russell Frontier® Index   5.0%   9.1%   14.6%

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.

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. Pease reflect market performance as of August 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. 

The Russell Frontier Index allows access to 33 countries, is float-adjusted and represents 98% of these countries' cumulative, liquid market capitalization. Russell defines frontier countries as those that do not meet the established criteria for membership in the Russell Emerging Markets Index.

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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