SOURCE: Russell Investments

Russell Investments

April 16, 2014 08:59 ET

Latest Russell Indexes Performance Data for European Smart Beta Investors

SEATTLE, WA--(Marketwired - Apr 16, 2014) -  Russell fundamentally weighted indexes in Europe outperformed their market capitalisation-weighted counterparts in 2013 and 2014 year-to-date as of April 8.

"Should European equity markets improve, our data suggests that, in certain cases, investors in smart beta strategies may benefit from factoring in alternative indices, like fundamentally weighted indices, in their pursuit of investment opportunities," said Gareth Parker, director of indexes research and product for Russell Investments Europe.

Fundamentally weighted indexes, which rank companies based on economic factors rather than stock price, can be an effective complement to capitalization weighted indexes.

The Russell Fundamental Index® Series offers a unique solution for investors interested in obtaining the potential benefits of alternative beta indexes while maintaining the diversification, transparency and liquidity of traditional indexing. Securities are selected and weighted according to fundamental measures of company size: Adjusted Sales, Operating Cash Flow, and Dividends plus Buybacks.

         
Index / Index Country Constituent   2014 YTD as of April 8   2013
Russell Eurozone Index   3.7%   24.9%
Russell Fundamental Developed Eurozone Index   6.2%   26.6%
Russell Developed Europe Index   2.8%   22.3%
Russell Fundamental Developed Europe Index   4.4%   24.6%

Source: Russell Investments. Total returns, 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. 

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.

Opinions expressed by Mr. Parker reflect market performance as of April 8, 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.

The trade names Fundamental Index®, RAFI, the RAFI logo and the Research Affiliates corporate name and logo are registered trademarks and are the exclusive intellectual property of Research Affiliates, LLC. Any use of these trade names and logos without the prior written permission of Research Affiliates, LLC, is expressly prohibited. Research Affiliates, LLC, reserves the right to take any and all necessary action to preserve all of its rights, title and interest in and to these marks.

Various features of the Fundamental Index® methodology, including an accounting data-based non-capitalization data processing system and method for creating and weighting an index of securities, are protected by various patents, and patent-pending intellectual property of Research Affiliates, LLC. (See all applicable US Patents, Patent Publications, and Patent Pending intellectual property located at http://www.researchaffiliates.com/Pages/legal.aspx#d, which are fully incorporated herein.)

Copyright © Russell Investments 2014. All rights reserved.

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.