SOURCE: Russell Investments

Russell Investments

March 21, 2013 09:20 ET

Russell Frontier Europe Index: Within the Frontier Markets of Europe, Cyprus Returned 8.2% YTD as of March 18th

SEATTLE, WA--(Marketwire - Mar 21, 2013) - The Russell Frontier Europe Index has returned 5.8% year-to-date as of March 18th, with country constituent Cyprus returning 8.2% year-to-date as the Cypriot government announced a levy on bank deposits in the country to meet euro-zone bailout terms over the weekend.

Russell Frontier Europe Index markets Serbia (13.9%), Croatia (12.2%), Estonia (11.8%), Lithuania (11.1%) and Romania (9.4%) have led the region year-to-date, while Slovenia (-3.1%), Bulgaria (-2.2%) and the Ukraine (-1.5%) have trailed within the region for the same time period.

"While the small size of Cyprus means that the country does not necessarily create a precedent for the rest of the Eurozone, recent events there do call into question the true strength of European solidarity and ability to collectively address the economic challenges facing the region. And, like the recent uncertain outcome of the Italian elections, it adds further uncertainty to the economic climate," said Wouter Sturkenboom, investment strategist with Russell Investments Europe. "Investors will be watching the situation in Cyprus very closely. While it is unlikely to ignite a major European situation on its own, the action of making bank deposits vulnerable to international creditors could set a rather dangerous precedent."

Russell Frontier Europe Index Performance
Index / Country Constituent   2013 YTD as of March 18th, 2013   2012
Russell Frontier Europe Index   5.8%   9.5%
Bulgaria   -2.2%   -1.2%
Croatia   12.2%   1.8%
Cyprus   8.2%   8.3%
Estonia   11.8%   37.6%
Lithuania   11.1%   18.8%
Macedonia   4.4%   -10.4%
Malta   6.0%   27.3%
Romania   9.4%   25.6%
Serbia   13.9%   3.5%
Slovakia   -0.8%   14.3%
Slovenia   -3.1%   12.0%
Ukraine   -1.5%   -8.4%

Source: Russell Investments

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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. Index returns are presented in euro-denominated terms. 

Opinions expressed by Mr. Sturkenboom reflect market performance and observations as of March 18, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

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