SOURCE: Russell Investments

Russell Investments

March 06, 2015 09:54 ET

Fabulous February for Developed European Equity Market Indices

US Dollar-Based Returns Not as Strong Due to Strengthening U.S. Dollar

SEATTLE, WA--(Marketwired - Mar 6, 2015) -  The Russell Developed Europe Index topped other Russell global indices in February, returning 7.2% for the month. The Index is up 13.7% year-to-date as of March 3. Both these returns are euro-denominated.

The Index outperformed other major Russell global equity market indices for the month, including the Russell Developed ex-U.S. Index, the Russell 3000® Index, the Russell Asia-Pacific Index and the Russell Emerging Markets Index. Year-to-date as of March 3, the Russell Asia Pacific Index has led with a 14.6% return (euro-denominated).

When looking at returns for this same set of indices in U.S. dollar terms, the Russell Developed Europe Index still led in February, but all five of these indices have had much lower realized returns year-to-date as of March 3 due to the strengthening U.S. dollar.

Gareth Parker -
Director, Index Research Design & Development, Russell Indices
"Comparing the year-to-date returns for a similar set of global equity market indices in euro-denominated and U.S. dollar denominated returns is a good reminder for investors that currency can have a big impact on returns for global portfolios. In 2015 in particular, as the euro has declined and the U.S. dollar has strengthened, currency impact on index returns has been quite noticeable. Regardless of how an investor chooses to approach currency risk, having access to index tools to understand the risk is critical."

Russell Indexes Performance (Euro-Denominated)

Index Jan-15 Feb-15 YTD 2015 as of 3-March
Russell Developed Europe Index 7.1% 7.2% 13.7%
Russell Developed x-US Index 6.8% 6.8% 13.5%
Russell 3000® Index 4.2% 6.4% 11.5%
Russell Asia Pacific Index 9.1% 4.6% 14.6%
Russell Emerging Markets Index 7.8% 3.3% 11.4%

Russell Indexes Performance (US Dollar-Denominated)

Index Jan-15 Feb-15 YTD 2015 as of 3-March
Russell Developed Europe Index -0.1% 6.6% 5.1%
Russell Developed x-US Index -0.4% 6.1% 4.9%
Russell 3000® Index -2.8% 5.8% 3.0%
Russell Asia Pacific Index 1.7% 4.0% 5.9%
Russell Emerging Markets Index 0.6% 2.7% 2.9%

For more information on the Russell Developed Europe Index, go to the Russell Indexes website.

Source: Russell Investments. Total returns, euro and US dollar denominated.

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.

Russell Investments is the owner of the trademarks, service marks and copyrights related to its respective indexes.

Opinions expressed by Mr. Parker reflect market performance as of March 3, 2015 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

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.

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 have less stability than those of more developed countries.

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.

Copyright © Russell Investments 2015. All rights reserved.

Russell Investments is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of London Stock Exchange Group.

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