SOURCE: Russell Investments

Russell Investments

October 08, 2012 04:30 ET

European "SMID" Caps Returned 18.3% in 2012 Through the End of the Third Quarter as Reflected by the Russell Europe SMID 300 Index

SEATTLE, WA--(Marketwire - Oct 8, 2012) - European "SMID" or small- and mid-cap stocks, as reflected by the Russell Europe SMID 300 Index, have outperformed other major U.S. and European indexes in 2012 through the end of the third quarter. The index outperformed similar capitalization stocks in the U.S. as reflected by the Russell 2000® Index of small cap U.S. stocks and the Russell Midcap® Index of mid-cap U.S. stocks. The index outperformed small- and mid-cap stocks globally, as represented by the Russell Global SMID Index. And the index outperformed large-cap European stocks, as represented by the Russell Developed Europe Large Cap Index.

Ronnie Sabel, European equity portfolio manager for Russell Investments Europe, comments, "Due to low coverage by brokers and a large breadth of opportunities, SMID cap stocks may be a place that offers opportunities for active equity managers. At this point, there are a number of good quality SMID cap companies in Europe that trade at discounted valuations due to the risks of the Eurozone crisis, but these valuations may underestimate both the quality of the balance sheets and the fact that many of these businesses have more global reach than their European listings suggest."

Scott Stark, head of Russell Indexes Europe, comments, "There is significant demand in Europe for a small- and mid-cap index from hedge funds, asset managers and the trading community looking to gain exposure to this area of the European equity market. The Russell Europe SMID 300 Index was developed after lengthy consultations in Europe with a number of large financial institutions to help address this need."

Index YTD Return as of 9/28
Russell Europe SMID 300 Index 18.3%
Russell 2000® Index 15.3%
Russell MidCap® Index 15.0%
Russell Global SMID Index 13.9%
Russell Developed Europe Large Cap Index 13.4%

Source: Russell Investments

The Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here: