SOURCE: Russell Investments

Russell Investments

February 24, 2014 08:48 ET

Greece, Portugal & Italy Help Drive Eurozone Performance Year-to-Date as of 20 February as Investors Await More News From ECB, Finds Russell Indexes

SEATTLE, WA--(Marketwired - Feb 24, 2014) -  European equities have posted strong returns year-to-date, with a closer look at the data suggesting investors are clearly in "risk-on" mode.

  • As of 20 February, peripheral Eurozone countries had led the Russell Eurozone Index year-to-date. Greece rose by +9.4%, Portugal by +8.5% and Italy +8.3%. This compares with an overall index return of 2.3% for the period.
  • Within the Index, dynamic- and value-oriented equities have also outperformed defensive and growth-oriented stocks year-to-date, suggesting investors are more confident putting money in companies that have relatively less stable business conditions or appear undervalued.

"2014 continues as a year of validation in the Eurozone, as the markets seek proof in the European economy that the strong equity market gains of 2013 can be sustained," said Wouter Sturkenboom, investment strategist with Russell Investments Europe. "The strong relative year-to-date returns for the Russell Eurozone Value Index appear to reflect that investors are still finding value in Europe. In addition, the strong relative year-to-date returns for the Russell Eurozone Dynamic Index and for country constituents Greece, Portugal and Italy may indicate that there is still a fair bit of 'risk-on' posture in the market. That said, European investors are awaiting further signals from the ECB on monetary policy to help determine where the markets may go later this year."

For more information on the Russell Investments 2014 Annual Global Outlook, go to the Russell Investments Website.

Russell Index Returns

Index / Index Country Constituent 2014 YTD a/o 20 Feb
Russell Eurozone Index 2.3%
Russell Eurozone Value Index 3.6%
Russell Eurozone Growth Index 0.2%
Russell Eurozone Dynamic Index 3.7%
Russell Eurozone Defensive Index 0.6%
Russell Eurozone Index - Greece 9.4%
Russell Eurozone Index - Portugal 8.5%
Russell Eurozone Index - Italy 8.3%
Russell Eurozone Index - Ireland 7.6%
Russell Eurozone Index - Austria 4.6%
Russell Eurozone Index - Spain 2.3%
Russell Eurozone Index - France 1.9%
Russell Eurozone Index - Finland 1.5%
Russell Eurozone Index - Netherlands 1.5%
Russell Eurozone Index - Germany 1.1%
Russell Eurozone Index - Luxembourg -2.0%

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. Russell Eurozone Index country constituent Belgium did not meet minimum reporting requirements (number & diversity of constituents) so is not included here. 

Opinions expressed by Mr. Sturkenboom reflect market performance as of February 20, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance. 

This material is not an offer, solicitation or recommendation to purchase any security.

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.