Russell Enhances Indices with FTSE Classification

May 13, 2002 ( - The latest move in a partnership between two index providers may give plan sponsors some help with attribution analysis across sectors and regions.

Aiming to provide a universal standard to measure US allocations, Frank Russell Company will provide subscribers to its equity indexes with access to sector-related data based on the FTSE Global Classification System.

The move, part of an ongoing collaboration between FTSE Group, an equity index provider, and Frank Russell Company, which operates the Russell indexes, is in line with the companies’ shared objective of providing a structure for sector analysis across country boundaries.

Investors who use Russell’s US benchmarks can now compare these holdings with their international portfolios.  It will allow them to better and more consistently manage their overall risk, according to a press release from FTSE.

The 10 FTSE economic classifications now offered to Russell index clients are:

  • resources
  • basic industries
  • general industries
  • cyclical consumer goods
  • non-cyclical consumer goods
  • cyclical services
  • non-cyclical services
  • utilities
  • financials
  • information technology.

The announcement follows the July 2000 formation of a collaboration between FTSE and Russell aimed at strengthening the global profile of both companies’ index suites.

The collaboration is expected to result in greater US penetration for FTSE’s global indexes and greater European penetration for Russell’s US indexes.