SOURCE: Russell Investments

Russell Investments

February 11, 2013 10:26 ET

Russell Indexes: Frontier Markets Lead the Way in 2013, Outperforming Emerging Markets by 9% Year-to-Date as of February 8th as Reflected by the Russell Emerging Markets & Frontier® ex-GCC Indexes

SEATTLE, WA--(Marketwire - Feb 11, 2013) - The Russell Frontier® ex-GCC* Index has returned 8.83% year-to-date as of February 6th, outperforming the Russell Emerging Markets Index (-0.31%) by more than 9%. Within each index, however, certain country constituents have significantly outperformed the region as represented by the parent index.

Frontier ex-GCC markets Vietnam (+18.60%), Nigeria (+17.70%) and Argentina (+12.77%) have led country constituent year-to-date for the Russell Frontier ex-GCC Index, while the Ukraine (+1.49%), Pakistan (+0.62%) and Tunisia (-0.21%) have trailed within the Index for the same time period.

Emerging markets United Arab Emirates (+11.83%), Philippines (+10.49%) and Thailand (+8.22%) have been the strongest performing country constituents year-to-date for the Russell Emerging Markets Index, while South Africa (-4.38%), Korea (-5.86%) and Malaysia (-5.98%) have trailed within the Index for the same time period. Within the Russell Emerging Markets Index, country constituents the Philippines, Thailand, Mexico and Colombia have all hit new all-time historical price level highs since the beginning of the year.**

The Russell Developed Europe Large Cap Emerging Markets GeoExposure Index, designed to track the performance of companies within its parent index the Russell Developed Europe Large Cap Index with significant revenue exposure to emerging markets, has returned 3.23% year-to-date as of February 8th.

"The wide variation of performance within emerging and frontier equity markets since the beginning of the year as demonstrated through the index returns helps illustrate the diverse nature of investment opportunities across less mature equity markets, while the Russell Developed Europe Large Cap EM GeoExposure Index returns for the same time period help illustrate the different experience an investor may have by tapping 'indirectly' into emerging markets through developed markets' companies," said Scott Crawshaw, emerging markets portfolio manager for Russell Investments. "And whether you are seeking direct or indirect exposure to emerging markets, it is important to work with an active manager with the insight to help you evaluate these opportunities and put them into a broader multi-asset context."

 
Russell Indexes Performance
 
Russell Index / Country Constituent   2013 YTD Return as of 8/2/13
Russell Developed Europe Large Cap EM GeoExposure Index   3.23%
Russell Emerging Markets Index   -0.31%
United Arab Emirates   11.83%
Philippines   10.49%
Thailand   8.22%
Chile   6.67%
Mexico   3.24%
Indonesia   3.04%
Russia   2.55%
China   1.40%
Turkey   0.43%
India   0.41%
Brazil   0.35%
Colombia   -0.37%
Taiwan   -0.48%
Egypt   -3.06%
Poland   -3.97%
Peru   -4.19%
Morocco   -4.19%
South Africa   -4.38%
Korea   -5.86%
Malaysia   -5.98%
Russell Frontier ex-GCC Index   8.83%
Vietnam   18.60%
Nigeria   17.40%
Argentina   12.77%
Kenya   10.87%
Sri Lanka   5.90%
Jordan   3.19%
Bangladesh   1.51%
Ukraine   1.49%
Pakistan   0.62%
Tunisia   -0.21%
     

Source: Russell Investments

About the Russell Geographic Exposure ("GeoExposure") Index Series
The Russell GeoExposure Index Series, four new indexes developed from existing Russell Global Indexes, follow a transparent and rules-based methodology to identify companies with exposure to emerging markets, and then adjusts the weight for each company within the index to reflect the significance of the exposure. The Russell Developed Europe Large Cap EM GeoExposure Index is designed to track the performance of companies within the Russell Developed Europe Large Cap Index with significant revenue exposure to emerging markets.

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.

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. 

Russell Emerging Markets Index country constituents Hungary and the Czech Republic had constituents with more than 30% weight in the index so were not included in the Individual breakdown. Russell Frontier ex-GCC Index country constituents Cyprus and Croatia had constituents with more than 30% weight in the index so were not included in the individual country breakdown

*The Russell Frontier ex-GCC Index does not contain GCC (Gulf Cooperation Council) members Qatar, Kuwait and Oman.

**Russell Emerging Markets Index country constituents all-time highs reached in 2013; Philippines, 6068.86 on Feb. 5; Thailand, 7064.85 on Feb. 4; Mexico, 4204.78 on Feb. 1; Colombia 15860.67 on Feb. 1.

Opinions expressed by Mr. Crawshaw reflect market performance and observations as of February 8, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

The Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here: http://www.russell.com/indexes/data/daily_total_returns_global.asp

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.

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.