Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

2907

Russell Global Index up 10.3 per cent in May

RELATED TOPICS​

The Russell Global Index reflected an increase of 10.3 per cent for the month of May amid a generally positive month for markets worldwide.

The Russell Global Index reflected an increase of 10.3 per cent for the month of May amid a generally positive month for markets worldwide.

Some leading benchmarks for the month included the Russell Greater China Small Cap Index (26 per cent), Russell BRIC Index (24.8 per cent) and Russell Emerging Europe Large Cap Index (23.7 per cent).

The US market as measured by the Russell 3000 Index (5.3 per cent) underperformed the Russell Global ex-US Index (14.2 per cent). Even so, the Russell 3000 reflected the third consecutive positive month and a year-to-date gain through the end of May of 3.8 per cent.

‘Though the US saw a modestly reduced rate of job losses, the ongoing slump in consumer demand, prospects of rising taxes, and three year highs in equity valuations caused investors to favor foreign equities by a margin of nearly nine percentage points,’ says Matthew Beardsley, associate portfolio manager at Russell. ‘This month’s returns show that despite ongoing questions about the economic strength of European markets in particular and their path to a recovery, the region was up 13 per cent on the basis of a rebound in prices of diversified financials and materials stocks.’

Eight European countries ranked among the top ten globally in terms of May returns, including six emerging markets such as Ukraine and Hungary.

‘Emerging markets again took top honors as the best performing global region on the back of solid domestic demand in countries like China and Brazil as well as a potentially more business friendly Indian political landscape,’ Beardsley says.

The Russell Emerging Markets Index (18.2 per cent) outperformed the Russell Developed Index (9.3 per cent) by about nine percentage points.
Beardsley says the return to rising commodity prices added strength to the energy and materials sectors, making areas such as gold and coal companies among the best performing in the world.

‘The financial sector also continued its resurgence as banks benefited from a marginal improvement in underlying asset values (debt holdings) as well as reduced borrowing costs as depicted by the sharp fall in Libor,’ he says. ‘Though other sectors like technology and consumer discretionary were ahead in absolute terms, they lagged the broader market as valuations here have increased more quickly relative to other sectors in recent months.’

Latest News

The trading and investment platform eToro has extended its proxy voting feature to all stocks..
C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and..
DWS has announced the latest development in its strategic growth push in Alternative Credit with..

Related Articles

Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Pension funds
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are coming together to instigate a new industry coalition...
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by