1st Quarter 2003: Indexes Reflect a Split Decision; Investor Uncertainty Yields Similar Results for all 21 Russell Indexes.Business Editors TACOMA Tacoma (təkō`mə), city (1990 pop. 176,664), seat of Pierce co., W Wash., on Commencement Bay and Puget Sound at the mouth of the Puyallup River; inc. 1884. , Wash.--(BUSINESS WIRE)--April 1, 2003 The broad-market Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. 3000(R) Index finished the first quarter about where it started with a seemingly seem·ing adj. Apparent; ostensible. n. Outward appearance; semblance. seem  ing·ly adv. uneventful 3% loss.But investor uncertainty of world and economic events throughout the quarter led to a 2.4% gain in early January January: see month. , followed by a 13.4% mid-quarter loss and a 9% surge in late March. These market gyrations resulted in a similar number of up and down days in the first quarter. The Russell 3000, which reflects approximately 98% of the investable U.S. equity market, turned in 28 positive days of performance and 33 negative days during the period. In addition, the largest one-day gain of 3.4% (March 17) equaled the largest one-day decline of 3.4% (March 24). "Despite the head-jarring volatility during the quarter the overall market level ended about flat," said Dennis Jensen Dr Dennis Jensen (born 28 February 1962 in South Africa), Australian politician, was elected to the Australian House of Representatives at the 9 October 2004 federal election for the Division of Tangney, Western Australia, for the Liberal Party. , senior research analyst. "The initial surge in January gave way to a long period of gradual bleeding before the initial military action in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. sparked a late-quarter surge." Even with the bursts of optimism that opened and closed the quarter, Jensen Noun 1. Jensen - modernistic Danish writer (1873-1950) Johannes Vilhelm Jensen added that investors in the first quarter seemed hesitant hes·i·tant adj. Inclined or tending to hesitate. hes i·tant·ly adv. to do much of anything in the market. As evidence, he pointed
to the consistently low trading volume Trading volumeThe number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. throughout the quarter with few exceptions such as the short-lived volume surge right after the war began in mid-March n. 1. the middle part of March. Noun 1. mid-March - the middle part of March period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" . "Investors were hit with a barrage of concerns, including increased gas prices, disappointing brokerage statements and ongoing negative news leading up to the war," he said. "These concerns seemed to create an atmosphere of uncertainty that affected all areas of the stock market and left investors unwilling to make decisions on where to invest, even at the sector level." This uncertainty was reflected by the performance of Frank Russell Frank Russell may refer to the following people:
adj. 1. Or or relating to corporations whose retained earnings and outstanding shares of common stock have a value between those of small cap companies and large cap corporations. 2. (R) Growth Index). Similarly, each index turned in a slightly positive performance for the month of March, ranging from 0.09% (Russell Top 200(R) Value Index) to 1.86% for three indexes: Russell Top 200(R) Growth Index, Russell 1000(R) Growth Index and Russell Midcap(R) Growth Index. "There's not much disparity dis·par·i·ty n. pl. dis·par·i·ties 1. The condition or fact of being unequal, as in age, rank, or degree; difference: "narrow the economic disparities among regions and industries" in index performance this quarter, especially when compared to the huge spreads that became commonplace the past several years," Jensen said. In addition, the 12 sectors within each index also showed little disparity in performance for the quarter. In the Russell 3000, for example, the relatively strong performing health care sector (1.2%) outpaced the worst performing sector (-7.8%, autos & transportation) by 9 percentage points. Even among the capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. tiers and the different investment styles, the indexes showed little disparity this quarter. The Russell Top 200(R) Index, for example, reflected a 3.1% loss, while the large-cap Large-cap A stock with a high level of capitalization, usually at least $5 billion market value. large-cap 1. Of or relating to the common stock of a big corporation that has considerable retained earnings and a large amount of Russell 2500(R) Index turned in a 4.1% loss. Further, the Russell 2000(R) Value Index gave up 5.1%, while the Russell 2000(R) Growth Index reflected a similar loss of 3.9%. "Even so, it is significant to point out that technology stocks in general, and among larger issues in particular, turned in a relatively good albeit negative performance for the quarter," Jensen said. The technology sector posted a paltry pal·try adj. pal·tri·er, pal·tri·est 1. Lacking in importance or worth. See Synonyms at trivial. 2. Wretched or contemptible. 0.3% loss for the quarter in the Russell 1000(R) Growth Index, but it declined 4.6% in the Russell 2000 Growth Index. The strength of large cap growth stocks led to the relatively good performance of large caps (-2.9%, Russell 1000), which outperformed small caps See Small capital (-4.5%, Russell 2000) for the quarter. In addition, growth stocks outperformed their value counterparts in every capitalization tier, including, for example, mid-cap Mid-cap Short for "Middle Cap," mid cap refers to stocks with a market capitalization of between $2 billion to $10 billion. Notes: As the name implies, a mid-cap is in the middle of the pack. A mid-cap isn't too big, but at the same time has a relatively decent market cap. stocks, as measured by the Russell Micap(R) Growth Index (-0.02%) and the Russell Midcap(R) Value Index (-4.1%). "But no matter how you slice or dice the data, it is clear that the level of disparity among different groups of stocks now is lower than we've we've Contraction of we have. we've have seen in recent years," Jensen said.
RUSSELL INDEXES TOTAL RETURNS
Period ending March 31, 2003
March 1Q03 2002
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Russell 3000(R) Index 1.05% -3.04% -21.54%
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Russell 1000(R) Index 1.04% -2.94% -21.65%
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Russell 2000(R) Index 1.29% -4.49% -20.48%
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Russell 2500(TM) Index 0.95% -4.09% -17.80%
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Russell Midcap(R) Index 0.99% -2.37% -16.18%
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Russell Top 200(R) Index 1.05% -3.12% -23.35%
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Russell 3000(R) Value Index 0.23% -4.88% -15.18%
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Russell 3000(R) Growth Index 1.84% -1.25% -28.04%
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Russell 1000(R) Value Index 0.17% -4.86% -15.52%
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Russell 1000(R) Growth Index 1.86% -1.07% -27.88%
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Russell 2000(R) Value Index 1.07% -5.08% -11.43%
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Russell 2000(R) Growth Index 1.51% -3.88% -30.26%
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Russell 2500(TM) Value Index 0.67% -4.77% -9.88%
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Russell 2500(TM) Growth Index 1.32% -3.20% -29.09%
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Russell Midcap(R)Value Index 0.34% -4.06% -9.65%
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Russell Midcap(R) Growth Index 1.86% -0.02% -27.41%
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Russell Top 200(R) Value Index 0.09% -5.19% -18.02%
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Russell Top 200(R)Growth Index 1.86% -1.33% -27.98%
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Russell Small Cap
Completeness(TM) 1.24% -3.14% -20.23%
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Russell Small Cap
Completeness(TM) Value Index 0.76% -3.87% -11.54%
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Russell Small Cap
Completeness(TM) Growth Index 1.80% -2.29% -29.95%
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Russell Russell Russell
3000 2000 1000
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Technology -1.2% -4.6% -0.9%
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Health Care 1.2% -1.5% 1.4%
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Consumer Discretionary &
Services -2.1% -5.5% -1.7%
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Consumer Staples -7.4% -8.3% -7.4%
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Integrated Oils 1.1% 31.7% 1%
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Other Energy 1.8% -3.4% 2.8%
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Materials & Processing -7.3% -8.3% -7.1%
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Producer Durables -8.4% -8.1% -8.4%
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Autos & Transportation -7.8% -10.3% -7.5%
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Financial Services -4.6% -1.4% -4.9%
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Utilities -7.1% -3.1% -7.3%
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Other 2.6% -15.7% 2.8%
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Russell indexes Russell Indexes US equity index widely used by pension and mutual fund investors that are weighted by market capitalization and published by the Frank Russell Company of Tacoma, Washington. serve as performance standards against which money managers and mutual funds can be evaluated. Russell estimates more than $1 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. of assets are benchmarked to Russell indexes. In addition, more than $250 billion is invested in passive index funds that use the Russell indexes as their model. Frank Russell Company, a global leader in multi-manager investment Multi-manager investment is an investment product that consists of multiple specialized funds. Each specialized fund may invest across different sectors and markets, or having managers investing in the same asset class but have different investment styles. services, provides investment products and services in more than 35 countries. Russell manages more than $67 billion in assets and advises clients worldwide representing more than US$1.6 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo. For more information, go to www.russell.com. Frank Russell Company, a Washington, USA corporation, operates through subsidiaries worldwide. Russell's indexes are unmanaged and cannot be invested in directly. |
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