Russell Investment Group plans to launch a set of global indexes in the fourth quarter, according to Kelly Haughton, strategic director of Russell Indexes. The initial launch will include an all-cap, a small-cap and a large-cap index.
"We are responding to our client base and the marketplace," Mr. Haughton said today at a news conference. "One thing users want is a logical set of indexes that are easy to use."
After the three initial indexes are launched, Russell officials will work on creating global indexes carved up by industry sector and investment style as well as individual country indexes.
"We will have an integrated global product line," he said. "We are building global indexes that reflect investment opportunities that are available to global investment managers. That means we're going to be broad."
As the Russell 3000 index represents 98% of the U.S. stock market and the Russell Nomura Total Market index represents 98% of the Japanese market, the new all-cap global index will represent 98% of the global equity market, Mr. Haughton said. He declined to say how many stocks will be in the indexes but noted that companies from Russia, China and India will be included.
The indexes will be float- and currency-adjusted.
