SOURCE: Russell Investments

Russell Investments

January 30, 2015 14:54 ET

Strong UK Equity Market Performance in 2015 Year-to-Date Overshadowed by Stronger Performance in Several Developed European Markets: Russell Indexes

Russell Examines UK Market Performance as Country Nears National Elections

SEATTLE, WA--(Marketwired - Jan 30, 2015) -  According to the Russell Developed Europe Index, UK equities have risen 7.2% in 2015 as of 27 January, but still trail the overall Index and other index country constituents Finland, Italy, France, Germany and Switzerland for the same time period.

As the UK looks towards national elections in May, Russell Investments strategists examine current UK equity market dynamics.

Wouter Sturkenboom -
Senior Investment Strategist, Russell Investments Europe
"The UK equity market has performed strongly in 2015 but, interestingly, has underperformed other European markets. This is likely a reflection of the sector composition of the UK equity market, which is heavy on energy and materials. Also, the upcoming UK election could create some uncertainty regarding a potential UK referendum on UK membership in the EU. Furthermore, the pound has been strong against the euro and weak against the U.S. dollar, reflecting ECB monetary policy expectations relative to the U.S. Federal Reserve. This has likely had some impact on UK equity market performance relative to the rest of Europe."

For more information on the Russell Developed Europe Index, go to the Russell Investments website.

         
Russell Developed Europe Index & Index Country Constituents   2015 YTD as of Jan 27   2014
Russell Developed Europe Index   7.5%   7.9%
Russell Developed Europe Index - Finland   9.3%   11.7%
Russell Developed Europe Index - Italy   9.0%   3.9%
Russell Developed Europe Index - France   8.4%   4.8%
Russell Developed Europe Index - Germany   8.4%   3.2%
Russell Developed Europe Index - Switzerland   8.3%   14.1%
Russell Developed Europe Index - United Kingdom   7.2%   7.2%
Russell Developed Europe Index - Sweden   6.8%   8.3%
Russell Developed Europe Index - Netherlands   6.4%   9.9%
Russell Developed Europe Index - Norway   6.4%   -2.5%
Russell Developed Europe Index - Ireland   5.7%   27.6%
Russell Developed Europe Index - Austria   3.7%   -9.7%
Russell Developed Europe Index - Luxembourg   3.0%   -4.1%
Russell Developed Europe Index - Spain   2.9%   8.8%
         

Source: Russell Investments. Total returns, euro denominated.

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. 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.

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Opinions expressed by Mr. Sturkenboom reflect market performance as of January 27, 2015 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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