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Saturday, 06/12/2010 3:08:35 AM

Saturday, June 12, 2010 3:08:35 AM

Post# of 10237
Russell posts lists of index additions
Annual process ensures each index reflects true market segments

http://www.russell.com/News/Press_Releases/PR20100611.asp

Tacoma, WA — June 11, 2010 — Russell Investments has posted its official lists of companies that are set to join or leave the broad-market Russell 3000® Index when its industry-leading U.S. equity indexes are reconstituted on June 25. These lists of U.S. companies—and lists of additions and deletions for the Russell Global Index—are available at www.russell.com/Indexes/membership/Reconstitution/default.asp.

With these changes the combined market capitalization of stocks in the Russell 3000, which reflects about 98% of the investable U.S. equity universe, will increase from $10.6 trillion at this point last year to $13.4 trillion. Similarly, the median market capitalization will increase by 38.8% from $578 million at this point last year to $802 million.

Exxon Mobil will continue to rank as the largest company in the index in terms of market capitalization, despite a 16.3% decline since last year's index reconstitution, and Berkshire Hathaway will move into the top 10, clearly making it the largest stock set for addition to the index this year.

Today's list of preliminary additions for the Russell 3000 features 262 companies, including 47 firms in the technology sector, 46 in the health care sector and 41 in the consumer discretionary sector.

"Reconstitution is a key feature of truly representative benchmarks," said Rolf Agather, head of index research and innovation at Russell. "Russell's unique process completely recalibrates Russell's U.S. Indexes to today's market realities, ensuring that stocks are moved into the right 'buckets' to truly represent small-cap, midcap, large-cap and microcap stocks. It also serves as a clear measure of the shifts in relative valuations of value and growth stocks over the past year."

Today's preliminary lists of additions and deletions represent the first public step in Russell's annual reconstitution process. Any updates to these lists will be posted June 18 and 25. The final membership lists for the Russell 3000, Russell 2000® Index and Russell 1000® Index will be posted June 28.

Membership in Russell's U.S. equity Indexes—widely used as benchmarks for both passive and active investment strategies—is determined by objective rules, such as market capitalization rankings. Accurate benchmarks are an integral part of Russell's ongoing process to monitor more than 8,000 investment manager products worldwide for Russell's $179 billion active investment management business.

Contacts:
Steve Claiborne, 253-439-1858

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