SEATTLE--(BUSINESS WIRE)--At the close of the U.S. markets today, Russell Investments completed its annual index reconstitution, the complete realignment of its family of global equity market indexes to reflect market changes in the past year. Annual reconstitution ensures that Russell Indexes remain accurate and objective representations of their targeted market segments, free of any size, style and country biases. Russell reconstitution is closely watched by investors, as $5.2 trillion in assets are benchmarked to Russell Indexes and nearly $800 billion in assets are invested in funds tracking the Russell Indexes.*
“Another index reconstitution was successfully completed today, benefitting our clients and investors around the world,” said Ron Bundy, CEO of Russell Indexes. “Annual reconstitution is a critical time for our global indexes and one of the most closely watched market events of the year. This year is even more significant for us as we celebrate our 30th anniversary, having first introduced our indexes in 1984.”
Russell Indexes relies on the strong support of its exchange partners NASDAQ and NYSE to help enable a successful conclusion to its reconstitution process year-after-year. Investors make adjustments to their portfolios as close to the market close as possible on the last day of reconstitution to seek to minimize any tracking error, and about half the stocks in the Russell 3000 broad market index are listed on either exchange. This is the eleventh straight year that Russell has exclusively partnered with NASDAQ on the NASDAQ Closing Cross, which brings together buy and sell interest in specific NASDAQ stocks and executes all shares for each stock at a single price at Russell reconstitution. And NYSE-listed stocks can utilize the NYSE’s floor-based high-tech, high-touch auction process to match orders fairly and transparently at the point of sale on June 27, the final day of Russell’s annual index rebalance.
When markets open on Monday, final membership lists for the newly reconstituted Russell Indexes, including breakouts for the Russell 1000® Index, the Russell 2000® Index and the Russell Midcap® Index, will be posted to the Russell reconstitution website. Highlights on important updates and changes at this year’s reconstitution can be viewed in a special video on the Russell Investments website.
About Russell Investments
Russell Investments (Russell) is a global asset manager and one of only a few firms that offers actively managed multi-asset portfolios and services that include advice, investments and implementation. Russell stands with institutional investors, financial advisors and individuals working with their advisors—using the firm’s core capabilities that extend across capital market insights, manager research, portfolio construction, portfolio implementation and indexes to help each achieve their desired investment outcomes.
Russell has more than $259 billion in assets under management (as of 3/31/2014) and works with over 2,500 institutional clients, independent distribution partners and individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell has $2.4 trillion in assets under advisement (as of 6/30/2013). It has four decades of experience researching and selecting investment managers and meets annually with more than 2,200 managers around the world. Russell traded more than $1.6 trillion in 2013 through its implementation services business. Russell also calculates approximately 700,000 benchmarks daily covering 98% of the investable market globally, including more than 80 countries and more than 10,000 securities. Approximately $5.2 trillion in assets are benchmarked (as of 12/31/2013) to the Russell Indexes, which have provided investors with 30 years of smarter beta.
Headquartered in Seattle, Washington, Russell operates globally, including through its offices in Seattle, New York, London, Paris, Amsterdam, Sydney, Melbourne, Auckland, Singapore, Seoul, Tokyo, Beijing, Toronto, Chicago, San Diego, Milwaukee and Edinburgh. For more information about how Russell helps to improve financial security for people, visit www.russell.com or follow @Russell_News.
*Asset figures referenced as of December 31, 2013
Russell Investments is a Washington, USA Corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company. Russell Investments is the owner of the trademarks, service marks and copyrights related to the Russell Indexes.
Indexes are unmanaged and cannot be invested in directly. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
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.
