GLOBAL - Russell is to launch global style equity indexes in April, reflecting key growth and value segments of the Russell Global Index.
Rolf Agather, director of business development for Russell Indexes, said that since the launch of Russell Global Indexes in early 2007, Russell had extensively researched how best to approach style index construction globally.
"Russell analysts research more than 8,000 products a year and through that work we have seen that manager increasingly diversifying from a domestic focus in their portfolios to a global one," Agather said.
"As a result there is an increasing demand for robust tools which analyse the performance of global portfolios."
Details on Russell's global style methodology will be made available when the indexes are launched in April but, in general, the methodology is driven by a view of global equity markets as essentially one large, albeit diverse, investment opportunity, rather than as a series of individual markets.
The global style indexes will be designed for a wide variety of purposes, including the analysis of money managers and the attribution of performance; acting as performance benchmarks for specialist mandates; providing insight into the exposures of market participants to growth or value on a global level; and serving as the basis of the tools for the management of those exposures through derivatives products, exchange-traded funds and other products.
Agather said as investors flocked towards global mandates, they were looking for more robust and transparent tools that reflected distinct market segments similar to those they had come to use for the US market.
He said: "Our US style methodology has earned close to 100% market share among institutional investors, and we aim to extend it globally as our research confirms that style is an increasing trend outside the US market."
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