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Investors Favored More Dynamic, Value-Oriented Stocks In An Emerging European Market According To Russell Indexes

Date 29/08/2013

As Europe appears to turn a corner economically, experts at Russell Investments believe European equities may provide better value versus other non-U.S. developed markets. In addition, dynamic and deep value-oriented investors may have found more investment opportunity in Europe in recent months, according to the Russell Indexes.

  • Since the beginning of the third quarter as of August 26, the Russell Developed Europe Dynamic Index has outperformed the Russell Developed Europe Defensive Index by more than 6% and has outperformed the Russell Developed Europe Index by more than 3.5%.

  • And for the same time period, the Russell Developed Europe Value Index has outperformed the Russell Developed Europe Growth Index by more than 3% and has outperformed the Russell Developed Europe Index by more than 1.5%.

"We are seeing a somewhat friendlier environment for European equities in recent months as the Eurozone emerges from recession. And this has attracted some investors interested in taking on riskier companies and deeper value plays," said Wouter Sturkenboom, investment strategist for Russell Investments Europe. "However, investors should be mindful that many questions remain in Europe in the coming months, such as potential financial bailouts for Greece and Portugal, political uncertainty in Spain and Italy and the coming German elections."

 
Russell Index Returns
 
Index   3rd Quarter to Date as of August 26   August to Date as of August 26   2013 YTD as of August 26
Russell Developed Europe Index   7.2%   1.9%   12.5%
Russell Developed Europe Dynamic Index   10.8%   3.1%   13.8%
Russell Developed Europe Defensive Index   4.6%   1.0%   12.0%
Russell Developed Europe Value Index   8.8%   2.4%   11.9%
Russell Developed Europe Growth Index   5.6%   1.4%   13.5%
             

Source: Russell Investments. Returns are denominated in euros.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Opinions expressed by Mr. Sturkenboom reflect market performance and observations as of August 26, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

This material is not an offer, solicitation or recommendation to purchase any security.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.