SEATTLE--(BUSINESS WIRE)--Russell today announced the 2015 schedule for its annual reconstitution process, which is designed to capture and reflect global equity market shifts in the past year to ensure that investors continue to have the most accurate proxy for global markets.
“We are excited to embark on another index reconstitution to benefit our clients and investors around the world,” said Rolf Agather, managing director of research and innovation for Russell Indexes. “Annual reconstitution is a critical time for our global indexes and one of the most closely watched market events of the year.”
Performed since the Russell Indexes were introduced in 1984, Russell Reconstitution ensures that the Russell Indexes continue to accurately reflect the current state of the global equity markets and their market segments, including market capitalization, sector breakdowns, company ranks and style structure.
Russell Reconstitution is closely watch by investors, as $5.2 trillion in assets are benchmarked to Russell Indexes as of December 31, 2013 and nearly $800 billion in assets are invested in funds tracking the Russell Indexes as of June 30, 2014.
The 2015 Russell Reconstitution schedule is as follows:
- June 12 - preliminary membership lists (with adds & deletes) posted to Recon Central after 3:00 PT.
- June 19, 26 – updated membership lists (including adds & deletes) posted to Recon Central after 3:00 PT.
- June 26 – Reconstitution is final after market close.
- June 29 – markets open with newly reconstituted Russell Indexes.
Notable index methodology updates will occur at this year’s Russell Reconstitution. Starting this year, additional or secondary share classes of eligible US companies that meet minimum size, liquidity and float requirements will be eligible for U.S. index inclusion. Also, an additional liquidity screen will be implemented to determine Russell Frontier® Index eligibility.
In terms of market classification, Russell Indexes has determined that Morocco will be reclassified from emerging to frontier market status. Cote D’Ivoire (the Ivory Coast) and Senegal, both previously ineligible for Russell index membership, will be eligible to join the Russell Frontier® Index. These changes will take effect at the conclusion of this year’s Russell Reconstitution.
A full summary of planned updates for this year’s reconstitution can be found at Recon Central on the Russell Indexes website.
About Russell Indexes
Russell is a pioneer and leader in equity market indexes for investors. Russell Indexes were first introduced in 1984 and, currently, approximately $5.2 trillion in investments assets globally are benchmarked to the Russell family of global indexes. The transparent, rules-based methodology of the Russell family of global indexes offers investors exposure to the true performance of different segments and asset classes of the market. Russell is helping to drive the rapid evolution of the index world, continuing to enhance its market capitalization weighted indexes while creating new “smart beta” indexes that go beyond traditional market capitalization approached while retaining a rules-based and objective composition. Russell’s family of global indexes is an important part of Russell’s unique set of core capabilities.
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 $275 billion in assets under management (as of 9/30/2014) 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 $2.6 trillion in assets under advisement (as of 6/30/2014). 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.
Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide and is part of the London Stock Exchange Group.
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.
Copyright © Russell Investments 2015. All rights reserved.