11.22.2016
By John D'Antona Editor, Traders Magazine

Russell/Nomura Total Market Index Adds 140 New Firms in Annual Reconstitution

11.22.2016 By John D'Antona Editor, Traders Magazine
FTSE Russell, the global index provider, and Nomura Securities Co., Ltd., today announced that 140 new stocks were added to the Russell/Nomura Total Market Index, which captures 98% of the float-adjusted market capitalization of the Japanese equity market, as part of the annual reconstitution process on November 21. The new membership list for the indexes was posted on the FTSE Russell website.

 

Slight increase in market capitalization reflects rise in Japan equity markets.

 

The number of constituents in the Russell/Nomura Total Market Index increased by 105 to 1,500. There were 140 additions to the Index and 35 companies were deleted. Total market capitalization of the Index increased by 0.9% to 334.8 trillion yen (as of October 14, 2016, float-adjusted).

 

Total constituents for the Russell/Nomura Large Cap Index, representing the top 85% of the Russell/Nomura Total Market Index based on float-adjusted market capitalization, included the same 350 companies as at 2015 reconstitution, while the number of stocks in the Russell/Nomura Small Cap Index, representing the bottom 15% of the Total Market Index based on float-adjusted market capitalization, increased to 1,150.

 

The Russell/Nomura Total Market Value Index had 173 additions and 65 deletions, while the Russell/Nomura Total Market Growth Index had 155 additions and 111 deletions. The capitalization turnover ratios for the Value and Growth Indexes are 14.7% and 13.2% respectively. Turnover ratio for the Value Index is slightly higher than last year, but within the five year average.

 

Sector shifts in the last year include a Value tilt for the Land Transportation, Transportation Equipment and Real Estate sectors while Electric Appliances, Pharmaceutical and Information and Communication sectors are now tilted toward Growth.

 

Russell/Nomura Prime Index adds 22 new companies

 

The Russell/Nomura Prime Index, which is a sub-index of the Russell/Nomura Total Market Index, was designed as a benchmark for passive management strategies for institutional investors. The Index includes the top 1,000 float-adjusted stocks from the Russell/Nomura Total Market Index, representing all market cap segments. As of 2016 reconstitution, 22 companies, including one IPO, entered the Index for the first time.

 

The turnover ratio for the Index, at 1.1%, was 0.5% lower than last year. Among the 22 additions overall, lead sectors included Services (5 stocks), Chemicals & Electric Appliances (3 stocks each) and Information & Communication (2 stocks).

 

– Ends –

 

Related articles

  1. $63.8bn of shares were executed in the Closing Cross in 2.04 seconds in Russell's annual reconstitution.

  2. The suite of tradeable indices are based on the Bloomberg Fixed Income Indices.

  3. The goal of carbon reduction has become a key focus for investors.

  4. Morningstar offers more than 25,000 indices calculated across all major asset classes, styles and strategies.

  5. The contract will facilitate ongoing reallocation from the CAC 40 index to its ESG version.