Benchmark Survey: Russell Index Usage on the Rise; Eight of Top 10 U.S. Benchmarks are Russell Indexes.Business Editors More than 25% of institutional U.S. equity products now rely on Frank Russell Frank Russell may refer to the following people:
When U.S. equity indexes are ranked by usage, 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. represent three of the top five and eight of the top 10 benchmarks. The small cap Russell 2000(R) Index ranks as the second most commonly used benchmark in the U.S. equity market. These rankings were determined by a recent internal study of 3,612 U.S. equity products listed in Nelson Information's MarketplaceWeb database. Russell's family of indexes was the only major set of benchmarks to gain market share since 1998, continuing a trend identified by Nelson in its original survey of benchmark usage in 1998. "Russell created its indexes to be used as benchmarks by institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. ," said Kelly Haughton, a senior executive at Russell. "We are heartened by the growing acceptance of our products by these investors." The strongest shift in usage among Russell indexes was the positioning of the Russell 2000(R) Value Index from 16th on the list of top benchmarks in 1998 to seventh place in 2002. Managers of 65 investment products now use the small-cap Small-cap A stock with a small capitalization, meaning a total equity value of less than $500 million. small-cap 1. Of or relating to the common stock of a relatively small firm having little equity and few shares of common stock value index as their benchmark. The Russell 1000(R) Value Index also showed solid gains, moving from seventh place on the list to third with 130 products. Overall, the top 10 U.S. equity benchmarks ranked by usage are the Standard & Poors 500 Index, Russell 2000(R) Index, Russell 1000(R) Value Index, S&P Mid-Cap 400 Index, Russell 1000(R) Growth Index, Russell 2000(R) Value Index, Russell 2500(TM) Index, Russell Midcap mid·cap 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) Index and Russell Midcap(R) Growth Index. Russell originally developed and still uses its indexes as tools to help pension plan sponsors and other investors evaluate the performance of active investment managers. The indexes also help investors assemble and evaluate a total portfolio by using benchmarks that reflect particular market segments based on objective criteria, such as 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. and tradable shares, rather than subjective decisions of an index committee. Russell estimates $850 billion of assets are benchmarked to Russell indexes. In addition, passive investments in index funds benchmarked on Russell indexes surged to a record $214 billion in 2001. The increase -- 85% in the past two years of turbulent markets -- continues an upward trend from $116 billion in 1999 and $176 billion in 2000. Since then, the California State Teachers Retirement System (CalSTRS) announced it would change its U.S. equity benchmark to the Russell 3000, furthering the growth trend for Russell benchmarks. Nelson Information, based in Port Chester, New York Port Chester is a village in Westchester County, New York, United States. The population is 27,867, according to the 2000 census, however, a July 1, 2002 Census estimate puts the village's population at 27,949. As a village, it is located in the Town of Rye. , has been a leader in providing information and software to the global institutional investment community for more than 25 years. Nelson's product line includes MarketPlaceWeb, proprietary databases, and a full line of comprehensive directories covering all facets of the institutional investment industry. For more information, go to www.marketplaceweb.com. 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 $70 billion in assets and advises clients worldwide representing US$1.8 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. . 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. The indexes are unmanaged and cannot be invested in directly. Frank Russell Company is the owner of the trademarks, service marks, and copyrights related to its indexes. |
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