Russell Investment Group will post probable additions and deletions to its U.S. equity indexes on its website, www.russell.com, on June 10, with final index membership taking effect June 24, according to Lori Richards, senior product manager for Russell Indexes. Updates to the preliminary list will be published June 17. "We want more and more transparency," she said. "We want everyone to be on equal footing." Ms. Richards noted that since September, the company has added initial public offerings to its indexes on a quarterly basis.
Separately, she said the company today began publishing real-time performance data for the 50 largest U.S. stocks, an index Russell has tracked internally since 1979. "We observed that active large-cap managers tend to underweight" these "mega-cap" stocks, Ms. Richards said. Also, with market indicators pointing to a period of large-cap stocks outperforming small-cap stocks, company officials decided plan sponsors and their consultants would benefit from having access to this index, she added.
"We think it's important and useful for plan sponsors to take a look at their allocation to this mega-cap group because it's a segment we've seen a bias against," she said. "If they've given an active manager the Russell 1000 as a benchmark, they can look at what proportion of the Russell 1000 is held in these (top 50) stocks and evaluate how their managers are positioned against it."