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To: bentway who wrote (135207)7/20/2008 1:00:22 PM
From: RockyBalboaRespond to of 306849
 
Annually, end of each June. Also see: russell.com

russell.com

Q: Why don't you reconstitute the indexes more often than once a year?
A: Maintaining representative indexes must be weighed against the costs associated with making frequent changes to index constituents (namely, buying and selling stocks). The Russell Indexes are annually reconstituted because our research has shown that this strikes a reasonable balance between accuracy and cost. We originally reconstituted our indexes quarterly, then semi-annually, but found these options to be suboptimal. Our extensive research demonstrates that annual reconstitution accurately represents the capitalization segments and minimizes the turnover required to reflect the segments as they change.

Q: When is reconstitution this year?
A: The 2008 reconstitution of the Russell Indexes will occur June 27. Both our U.S. and Global index families will go through reconstitution simultaneously. Provisional indexes will be published beginning on June 13 to allow investors to begin to track the new indexes prior to reconstitution and legacy indexes will be published beginning on June 27 to allow investors to continue to track the old indexes. We provide these indexes before and after the official reconstitution date to allow investors to choose their own timing on when they want to execute their index trades.

Q: What's the basic process?
A: On the last trading day in May (this year May 30), all eligible securities globally are ranked by their total market capitalization. Companies whose stocks are listed on eligible stock exchanges in eligible countries and who pass minimum liquidity and other investability rules are considered for inclusion in the indexes. Beginning on June 13, preliminary lists for the additions and deletions to the indexes are communicated to the marketplace. These changes go into effect after the close on Friday June 27. All Russell indexes are subindexes of the Global Index.

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