SOURCE: Russell Investments

Russell Investments

July 12, 2011 20:59 ET

Taiwan Total Market Capitalization Increases by 42% in Russell's Annual Reconstitution

SINGAPORE--(Marketwire - Jul 12, 2011) - Russell Investments has completed the annual reconstitution of the Russell Global Index aimed at maintaining the most accurate equity benchmarks. Taiwan saw a significant increase in market capitalization to $822 billion, which is an increase of 41.2% from $580 billion in 2010.

The complete Russell Global Index list is available at http://www.russell.com/Indexes/membership/default.asp

"Our annual process to fully reconstitute the Russell Global Index shows a remarkable increase in Taiwan's market capitalization," said Rolf Agather, managing director for index research and innovation for Russell Investments. "This enormous increase in Taiwan's growth is a key example of why we conduct our annual reconstitution process. We endeavor to provide investors with the most reliable and accurate benchmarking tools."

Other highlights from the annual reconstitution include:

  • Taiwan moves from being the 16th largest country by total market cap to the 14th, effectively replacing the Netherlands which was dropped from the global Top 20 altogether
  • Taiwan remained the sixth largest country by securities with 418
  • Technology experienced the largest drop in sector weighting, falling by 4.9% from 53.8 to 48.9%. Decline notwithstanding, technology remained Taiwan's largest sector, comprising slightly less than half of the index

Russell's index reconstitution process is followed closely by many investors because $3.9 trillion in assets are benchmarked against them, and they account for an industry-leading 63.3% of institutional benchmarked products. Membership in Russell's equity indexes -- widely used as benchmarks for both passive and active investment strategies -- is determined by objective rules. Accurate benchmarks are an integral part of Russell's ongoing process to monitor more than 8,000 investment manager products worldwide for its $161 billion investment management business.