SOURCE: Russell Investments

Russell Investments

December 06, 2012 10:34 ET

Europe Has Outperformed Other Global Regions in 4Q, Says Russell Indexes

SEATTLE, WA--(Marketwire - Dec 6, 2012) - The Russell Developed Europe Index has outperformed the Russell 1000® Index, the Russell Developed Index and the Russell Emerging Markets Index in Q4 2012 as of December 3rd, indicating a strong market for investors in recent months.

Driven by the performance of dynamic stocks, the Russell Developed Europe Index has returned 4.48% quarter-to-date as of December 3rd, 2012, whereas the Russell 1000 Index, the Russell Developed Index and the Russell Emerging Markets Index have only returned (-1.83%), 0.59% and 0.76% respectively within the same time period.

Dynamic-oriented stocks have led defensive-oriented stocks for the Russell Developed Europe Index in the fourth quarter. The Russell Developed Europe Dynamic Index is up 6.16% and the Russell Developed Europe Defensive Index is up 3.04% for the fourth quarter as of December 3rd. The Russell Defensive and Dynamic Indexes rank companies based on stability, which is measured in terms of volatility (price and earnings), leverage and return on assets. The more stable half of the market is called Defensive and the less stable half is called Dynamic.

"European equities remain volatile and far too dependent on policy progress yet have shown strong relative performance as evidenced by the recent index returns," said Wouter Sturkenboom, investment strategist with Russell Investments Europe. "Recent returns for the European equity markets relative to the U.S., for instance, suggest that crisis level policy concerns may have abated somewhat in this region as market watchers ponder the 'fiscal cliff' in the U.S. And strong performance by dynamic-oriented European stocks in 4Q suggests an increasing 'risk-on' stance by European investors."

 
2012 Year-to-Date & 4th Quarter Performance - Russell Global Indexes
 
Index   4th Qtr as of 12/3/12   Year-To-Date as of 12/3/12
Russell Developed Europe Index   +4.48%   +17.90%
Russell Developed Europe Dynamic Index   +6.16%   +20.09%
Russell Developed Europe Defensive Index   +3.04%   +15.67%
Russell 1000 Index   -1.83%   +14.69%
Russell Developed Index   +0.59%   +14.38%
Russell Emerging Markets Index   +0.76%   +13.67%
         

Source: Russell Investments

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. 

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