The Markets June 14, 2010

Russell Announces Index Changes

Russell Investments has posted its official lists of companies that are set to join or leave the broad-market Russell 3000 Index when its U.S. equity indexes are reconstituted on June 25.
Reported by

According to the company, the 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. 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, making it the largest stock set for addition to the index this year. 

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, the press release said. Similarly, the median market capitalization will increase by 38.8% from $578 million at this point last year to $802 million. 

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These are preliminary lists and any updates 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. 

These lists of U.S. companies, as well as lists of additions and deletions for the Russell Global Index, are available here.

Products June 14, 2010

ICMA-RC to Offer New Retirement Income Product

 ICMA-RC has announced a new retirement income solution for state and local government employees.
Reported by

The organization is entering into agreement with Prudential Retirement to make available the VantageTrust Retirement IncomeAdvantage Fund. The fund features no withdrawal penalties, full access to its market value, and a straightforward fee structure, and is expected to be available in the fall of 2010. 

The IncomeAdvantage Fund will be managed by ICMA-RC and made available to participants through their employer-sponsored retirement plans, according to a press release.   

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The VantageTrust Retirement IncomeAdvantage Fund is a solution intended to provide guaranteed lifetime retirement income to public sector employees, the announcement said. The fund invests in a separate account under a group variable annuity issued by Prudential Retirement Insurance and Annuity Company and is designed primarily for participants who are within 10 to 15 years of retirement.  

Participants will have the option to “lock-in” their benefits and begin receiving a guaranteed lifetime annual withdrawal amount from the fund at any time after their 55th birthday. After a participant “locks-in,” the guaranteed lifetime annual withdrawal amount will never decrease as a result of market downturns, but the amount can increase if the markets perform well. 

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