Russell Investment Group and Nomura Securities will add 94 firms to the Russell/Nomura Total Market index and its subindexes on Dec. 1 and add 44 firms to the Russell/Nomura Prime index as part of their annual reconstitution, confirmed Kelly Houghton, strategic director for Russell indexes.
"This event is taking on increasing importance in Japan since there's a growing amount of assets in Russell/Nomura index funds and a growing number of Japanese pension fund sponsors using Russell/Nomura indexes as benchmarks," Mr. Houghton said in an interview.
The Russell/Nomura Total Market index covers 98% of publicly traded Japanese companies, while the Prime index measures performance of Japan's top 1,000 float-adjusted stocks.
The total market value of the Russell/Nomura Total Market index is expected to reach 295 trillion yen ($2.5 trillion) from 285 trillion yen as a result of the reconstitution, while the total market value of the Prime index is expected to increase to 282 trillion yen from 274 trillion yen.
The preliminary list of additions and deletions for the indexes is available at http://qr.nomura.co.jp/en/index.html.