SOURCE: Russell Investments

Russell Investments

November 01, 2012 09:43 ET

South Korea Equity Market as Reflected by the Russell Korea Index, Posts 10.3% Return in the Third Quarter of 2012

SEATTLE, WA--(Marketwire - Nov 1, 2012) - The Russell Korea Index posted a 10.3% return in the third quarter of 2012, even as the South Korean GDP fell to the slowest growth pace in any individual quarter since the fourth quarter of 2009. Month-to-date, the Russell Korea Index has reflected a loss of -4.3% through October 28, even after Samsung's positive earnings report on October 26.

The Russell Korea Index beat the 3Q12 returns of the Russell Asia Pacific Index (6.0%) and Russell Emerging Markets Index (8.1%), which includes South Korea as a constituent. Russell Indexes analyzes both macro and operational risk factors to determine whether a country classifies as a developed, emerging or frontier market.

"Samsung Electronics' recent strong performance has helped the South Korean equity market upwards, as represented by the company's 21.4% weight in the Russell Korea Index," said Gustavo Galindo, Emerging Markets Portfolio Manager for Russell Investments. "Samsung's geographic exposure to the world's global technology cycle has allowed the company to evade the negative effects of the Korean economic slowdown."

The Russell 1000® EM GeoExposure Index, which provides investors with exposure to emerging markets through an index of developed market companies, reflected 4.4% gains in the third quarter of 2012. The Index has reflected 6.2% return year-to-date through October 28.

    Third Quarter 2012   October MTD through October 28   YTD through October 28
Russell Korea Index   10.3%   -4.3%   10.2%
Russell Emerging Markets Index   8.1%   -1.0%   11.7%
Russell Asia-Pacific Index   6.0%   -0.7%   10.1%
Russell 1000(R) EM GeoExposure Index   4.4%   -2.7%   6.2%

Source: Russell Investments

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. 

Opinions expressed by Mr. Galindo reflect market performance and observations as of October 28, 2012 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.

Returns provided are US dollar-denominated.

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.

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.