|Amots, Vivus price on 5/31/02 is the figure Russell is looking at: $7.79 :-) |
Date Open High Low Close Adj. Vol. Adj. Close
May-31 7.55 8.13 7.55 7.79 402,900 7.79
Russell's 21 U.S. Equity Indexes due for Annual Adjustment
Reconstitution process keeps stock benchmarks tuned to market realities
TACOMA, Wash. — April 22, 2002 — Frank Russell Company will post lists of probable additions and deletions for its family of 21 unmanaged U.S. equity indexes Friday, June 7 on www.russell.com. Final index membership will take effect July 1 and remain in place for the ensuing 12-month period.
Membership in Russell's indexes is determined by market capitalization rankings rather than by subjective opinion or committee decisions. Russell posts preliminary lists of companies moving in or out of the indexes to allow investors and money managers an estimation of which companies will be included in its newly reconstituted indexes.
"This annual tune-up recalibrates Russell's U.S. indexes to today's market realities," said Kelly Haughton, a senior executive at Russell. "It also serves as a clear, unbiased measure of the shifts in relative valuations of value and growth stocks over the past 12 months."
Haughton added that accurate benchmarks are an integral part of Russell's extensive analysis of more than 3,400 investment managers worldwide and for use in the company's multi-manager funds complex.
The annual reconstitution of Russell's 21 U.S. equity indexes captures the 3,000 largest U.S. stocks as of May 31, ranking them by market capitalization to create the broad-market Russell 3000® Index. The largest 1,000 companies in the ranking will comprise the large-cap Russell 1000® Index while the remaining 2,000 companies will comprise the small-cap Russell 2000® Index.
After the preliminary list of additions and deletions for the broad-market Russell 3000 are posted, the reconstitution process continues through the month of June with any updates set for June 14 and 21. During this time capitalization rankings are adjusted for mergers and other corporate changes. The final, official membership lists for the Russell 3000, Russell 1000 and Russell 2000 will be posted by July 9 on www.russell.com.
While the unmanaged indexes cannot be invested in directly, more than $214 billion is invested in passive funds using Russell's U.S. indexes as a model, according to an annual client survey. About $96 billion uses the Russell 3000 (including the Russell 3000® Growth Index and Russell 3000® Value Index), about $80 billion uses the large-cap Russell 1000 (including the Russell 1000® Value Index and Russell 1000® Growth Index) and about $30 billion uses the small-cap Russell 2000 (including the Russell 2000® Growth Index and Russell 2000® Value Index.)
June 7: A preliminary list of companies being added to or deleted from the Russell 3000 Index (based on market capitalization as of May 31). Information will be available on Russell.com and the Russell Electronic Data Environment (clients).
June 14 & 21: Updates to the preliminary list, taking into account corporate actions and adjustments in data on companies and their capitalizations. Information will be available on Russell.com and the Russell Electronic Data Environment (clients).
By July 9: Newly reconstituted membership lists for the Russell 3000, Russell 1000 and Russell 2000 are posted (alphabetical, without shares). Info will be available on Russell.com.
A Few Technical Changes Enhance Transparency
In advance of this year's reconstitution process, several technical changes were incorporated into Russell's index methodology to increase transparency and better reflect market reality. Changes to enhance transparency include the inclusion of style median breakpoints of historical reconstitutions, the addition of a primary trading vehicle matrix, and a new 5% threshold for cumulative changes to shares outstanding. For better market reflection, the indexes now use primary exchange closing prices, heed a new rule to price a stock when deleting it from an index, and exclude unlisted share classes from float calculations. For more information on these enhancements, go to www.russell.com/us/indexes/us/methodology_detail.asp for a paper titled, "Index Construction and Methodology."
Frank Russell Company, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages $70 billion in assets and advises clients worldwide representing US$1.8 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo.
Contact — Steve Claiborne (253) 594-1858
Frank Russell Company, a Washington, USA corporation, operates through subsidiaries worldwide. The indexes are unmanaged and cannot be invested in directly. Frank Russell Company is the owner of the trademarks, service marks, and copyrights related to its indexes.