Russell Indexes to Add IPOs on a Quarterly Basis Change in Methodology Enhances Market Representation of Index.TACOMA, Wash. -- Beginning Sept. 30, 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. will add initial public offerings (IPOs) on a quarterly basis in order to enhance how well each index reflects its segment of the U.S. equity market. The revised methodology of adding IPOs on a quarterly rather than annual basis means approximately 40 IPOs are expected to be added to the Russell indexes at the end of the third quarter.
"As an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. becomes part of the opportunity set for investors, Russell indexes will capture these new securities in a more timely manner," said Lori Richards, senior product manager, Russell indexes. "Our client advisory board recommended this change, and our research shows it offers better representation of market changes with minimal impact on turnover or related costs."
IPOs previously were added as part of Russell's annual index reconstitution process, which meant an IPO could wait nearly a year for inclusion. Existing index members that grow or shrink in market cap during the year will continue to remain in the respective indexes until the annual reconstitution.
"This change is structured in a way that allows Russell indexes and index membership to remain objective and transparent," said Richards. "We'll conduct a systematic review each quarter, and our methodology for IPO additions will be clearly stated on www.russell.com."
The quarterly IPO additions process works as follows:
--On the quarterly "market snapshot (1) A saved copy of memory including the contents of all memory bytes, hardware registers and status indicators. It is periodically taken in order to restore the system in the event of failure.
(2) A saved copy of a file before it is updated. " date, which will be Aug. 31 for the third quarter, Russell will check all recent IPOs to see how the stock's market cap ranks on that date relative to the market cap breaks established at the latest reconstitution.
--A list of IPOs that qualify for inclusion in Russell indexes would be announced publicly on the 15th of the following month, which will be Sept. 15 this quarter.
--Any IPO which has a market cap that justifies inclusion in an index, and which meets Russell's other membership rules, would be added to the appropriate indexes after the U.S. equity markets close on the last day of the quarter, which is Sept. 30 this quarter.
To be eligible for inclusion, the IPO date would need to fall within the three-month period prior to the "rank" date. As IPOs are added to Russell indexes each quarter, Russell will not delete To remove an item of data from a file or to remove a file from the disk. See file wipe, trash and undelete.
1. (operating system) delete - (Or "erase") To make a file inaccessible. existing index members to make room for them, but will continue to reconstitute re·con·sti·tute
tr.v. re·con·sti·tut·ed, re·con·sti·tut·ing, re·con·sti·tutes
1. To provide with a new structure: The parks commission has been reconstituted.
2. the indexes fully each year at the end of the second quarter.
As a result of the annual reconstitution process in 2004 Russell added 100 IPOs to its family of U.S. equity indexes, while only 28 IPOs were added in 2003. The record was set in 2000 when 320 IPOs moved into Russell indexes.
Russell Investment Group Russell Investment Group is an investment firm with global reach, providing investment products and services to individuals and institutions in 44 countries. A pioneer in multi-manager investing, and the creator of Russell Indexes, Russell manages more than US$200 billion in assets , 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 $110 billion in assets and advises clients worldwide representing more than $1.8 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.
Russell Investment Group is a registered trade name of Frank Russell Frank Russell may refer to the following people: