Russell Indexes to Reflect Growth of Bio-tech Firms; California-Based Firms Also See Gains in Reconstitution Process.TACOMA, Wash. -- About three dozen biotechnology firms across the country are set to join the broad-market Russell 3000(R) Index this month, replacing a wide range of firms from other sectors that didn't fare as well during a positive year on Wall Street. The 324 companies on this year's list of preliminary additions, which is available on www.russell.com, include 34 biotechnology firms and 20 medical specialties Medical Specialties
See also anatomy; disease and illness; drugs; health; remedies; surgery.
the science of the description of glands. — adenographic, adj. companies.
Likewise, 12 real estate investment trusts are slated to join the index.
By contrast, 56 regional, savings and major banks are slated for deletion deletion /de·le·tion/ (de-le´shun) in genetics, loss of genetic material from a chromosome.
Loss, as from mutation, of one or more nucleotides from a chromosome. from the index this year.
"Russell's index reconstitution process each year objectively captures the changing fortunes of companies and industries in the U.S. equity market," 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. "We don't see as much change this year as we did a few years ago during the Internet bubble See dot-com bubble. , but they're important to reflect in order to achieve a better representation of the market and its various segments."
Russell posted on its website June 18 updated lists of companies set for addition to -- or deletion from -- the ranking of stocks that make up its 21 U.S. equity indexes. Final index membership goes into effect June 25 and remains in place for one year.
Among the 50 states, California again leads the way on the list of preliminary additions as 70 companies, about 22% of the total, are based in the Golden State. The next nine states represented on the additions list are: Texas (33 companies), 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 (27), Florida (18), Pennsylvania (14), New Jersey (13), Massachusetts (13), Minnesota (13), Illinois (9) and Virginia (9).
California also is home to 35 stocks set for deletion from 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. , but the net gain of 35 companies still ranks it above all other states in terms of total additions or net gains. The next nine states with the most companies on the preliminary deletions list are New York (18), Pennsylvania (16), New Jersey (12), Virginia (11), Minnesota (10), Ohio (10), Massachusetts (9), Texas (9) and Florida (8).
Looking at net gain -- number of companies on the additions list minus those on the deletions list -- the index reconstitution process shows Texas (net gain of 25) and Florida (net gain of 10) follow California's lead.
By contrast, Ohio will likely realize a net loss of six companies in the Russell 3000, while Pennsylvania and Virginia will each likely see a net decrease of two firms in the index.
"The rotation of who's in and who's out of Russell indexes shows the changing nature of U.S. equity markets," said Jensen. "We see pockets of success across the country, but by and large it was a relatively dull year in relation to the dramatic change our process captured during the Internet frenzy and subsequent crash."
These preliminary lists of additions and deletions to the Russell 3000 represent the first steps in Russell's annual index reconstitution process -- a procedure that adjusts Russell's stock indexes to reflect current market capitalization Market Capitalization
A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. and style attributes. The final reconstituted lists will be available July 6 on www.russell.com.
Annual reconstitution of the Russell indexes captures the 3,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization Total Market Capitalization
The total market value of all of a firm's outstanding securities. to create the Russell 3000. The largest 1,000 companies in the ranking comprise the Russell 1000(R) Index while the remaining 2,000 companies become the Russell 2000(R) Index.
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 $107 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, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo.
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