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Russell Investments will add 31 initial public offerings (IPOs) to the Russell Global Index for the fourth quarter of 2011 on December 19th, including 11 additions to the U.S. small cap Russell 2000® Index, consistent with the firm's systematic quarterly process.
Of the 15 IPOs to be added to the Russell Global ex-U.S. Index, 12 are across the Asia-Pacific region, with eight falling into Asia-Pacific emerging markets as classified by Russell Indexes. Four companies become part of the Russell Greater China Index.
In the U.S., 16 IPOs will be added to the U.S. broad market Russell 3000® Index, including one to the large-cap Russell 1000® Index and 11 into the small-cap Russell 2000® Index. Four additional companies are joining the Russell MicrocapÒ Index. Overall, this is nine less IPOs than were added in U.S. in the third quarter of 2011. And the total of 31 IPOs to be added to the global index in the fourth quarter represents a significant drop from the 90 IPOs added in the third quarter of 2011.
Some of the key U.S. IPO additions to the Russell 3000® Index for this quarter include; Groupon, Inc. (GRPN), Angie's List, Inc. (ANGI) and Manning & Napier, Inc. (MN).
"The quarterly addition of eligible IPOs worldwide is a significant component of the Russell Index methodology, allowing for enhanced market representation without significant turnover," said Rolf Agather, global managing director of index research and innovation at Russell Investments. "Our process ensures continuing relevance and objective market representation across all Russell Indexes globally, providing investors with comprehensive benchmarks that transparently track market performance across the globe."
Added Stephen Wood, Russell Investments' New-York based Chief Markets Strategist, "These IPO data show that volatility in market conditions continues to impact assets both in the US and around the globe."
Inclusion in the various Russell Indexes is determined by market capitalization. Russell weights members of each index by float-adjusted market capitalization and explicitly excludes "locked-up" shares from IPO weights. As IPOs are added each quarter, Russell does not delete existing members to make room, but fully reconstitutes each index annually at the end of the second quarter.
For information on Russell's IPO additions process and to see the lists of IPOs for the current and previous quarters, go to http://www.russell.com/indexes/tools-resources/initial-public-offerings.asp.
