GLOBAL - Russell Investment Group has responded to a shift in focus in the global investment market by taking its equity indexes global.
Russell, creator of the small-cap Russell 2000 Index and family of US equity indexes yesterday announced the launch of the Russell Global Indexes - a fully-integrated family of global stock indexes.
“We’re extending globally our same pioneering index methodology that gives investors objective and transparent tools to accurately measure distinct US market segments,” said David Grieger, managing director of Russell Indexes.
“The 10,000 or so companies in this global benchmark are selected by float-adjusted market capitalisation and their trading liquidity threshold, giving investors a cohesive and consistent framework for measuring investment performance globally - with no gaps or overlaps.”
The firm said skilled investors were adopting an “increasingly global outlook” and now placed less emphasis on company size or country of origin in stock selection.
The Russell Global Index, which uses the broad-market Russell 3000 Index as its US component, is divided into 300 core indexes that cover 22 regions and 63 countries.
Russell’s global small-cap universe includes more than 7,000 investable companies from countries throughout the world.
“We originally created the US indexes as tools to help our plan sponsor clients more acurately measure the performance of investment managers, and we’ve listened to them to develop wha tthey want to see in global indexes,” said Ron Bundy, director, Russell Indexes. “While most investors will have difficulty replicating our qualitative evaluation of money managers, the indexes allow everyone to use the same quantitative benchmarks that we use.”
Russell’s US indexes have $3.8trn in assets benchmarked to them and account for 52% of assets benchmarked by US institutional investors, according to Russell’s examination of nearly 3,000 US equity products listed in Nelson Information’s Marketplace Web database.
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