SOURCE: Russell Investments

Russell Investments

November 01, 2013 11:10 ET

Global Banking Stocks Appear to Ignore the Headlines, According to Russell Indexes

SEATTLE, WA--(Marketwired - Nov 1, 2013) -  Whilst a number of large global banks face mounting legal costs and inquiries from regulators, global banking stocks have continued to show strong performance, according to Russell Indexes.

  • Within the Russell Global Index, the Banks: Diversified industry subsector has returned 14.9% year-to-date and 4.1% month-to-date as of October 29. This subsector has outperformed the Index thus far in October.

  • Within the Russell Developed Europe Large Cap Index, the Banks: Diversified industry subsector has returned 22.6% year-to-date and 6.6% month-to-date as of October 29, outperforming the Index for both time periods.

  • And within the U.S. large-cap Russell 1000® Index, the Banks: Diversified industry subsector has returned 21.9% year-to-date and 2.2% month-to-date as of October 29. This subsector has outperformed the Index year-to-date.

"Russell Indexes seek to provide an unbiased and comprehensive picture of the global equity market environment and as a result can serve as powerful tools for investors," said Gareth Parker, director of research and product development for Russell Indexes Europe. "In this case, the 'deeper dive' analysis can help to separate headline perception from performance and provide perspective on global bank performance."

Index Oct MTD YTD
Russell Global Index 2.9% 16.1%
Russell Global Index - Banks: Diversified Subsector 4.1% 14.9%
Index Oct MTD YTD
Russell Developed Europe Large Cap Index 3.5% 18.3%
Russell Developed Europe LC Index - Banks: Diversified Subsector 6.6% 22.6%
Index Oct MTD YTD
Russell 1000 Index 3.5% 21.7%
Russell 1000 Index - Banks: Diversified Subsector 2.2% 21.9%

Source: Russell Investments. Returns are euro-denominated and are total returns reflecting reinvestment of dividends and distributions.

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. 

Past performance does not guarantee future performance. This material is not an offer, solicitation or recommendation to purchase any security. Returns cited are euro-denominated.

Investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation.

Opinions expressed by Mr. Parker reflect market performance and observations as of October 29, 2013 and are subject to change at any time based on market or other conditions without notice. 

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.