FTSE Russell Global Indexes: Next Steps
18 January 2018
In August 2017, FTSE Russell concluded a Consultation on FTSE GEIS and Russell RGI IndexAlignment, which set out a potential path that would bring the two global index series - FTSE Global
Equity Index Series (FTSE GEIS) and Russell Global Indexes (RGI) - further into alignment.
Consultation Summary
The consultation proposed that FTSE GEIS would be extended to include micro-cap companies and thatRGI would be replaced by a new global index, FTSE RGI, that would combine the constituents of theRussell 3000 (R3) with the non-R3 constituents of the extended GEIS index. The consultation included
questions on how, and when, FTSE GEIS should be reconstituted and reviewed. Respondents wereinvited to opine on whether FTSE GEIS might move to the Russell index construction principle of having asingle annual reconstitution/review in June of each year, albeit with the possibility of using a different
effective date.
Consultation Findings
Consultation participants confirmed support of a single consistent global index methodology that provided
broad global coverage. They further supported a regional index build. However, respondents were not infavour of moving FTSE GEIS to a single annual review and preferred the existing practice of conducting
two semi-annual reviews which they considered provided a better balance between the competing
requirements for maximising index representativeness whilst minimising transaction costs and liquidity
demand.
Furthermore, consultation participants did not anticipate that there would be any significant demand forthe proposed FTSE RGI index. Rather, respondents supported the coexistence of both the FTSE GEIS andRussell US Indexes as their respective global and US equity market benchmarks. They embraced theFTSE GEIS concepts of comprehensive global coverage, regional relative build, semi-annualreviews and quarterly updates to shares outstanding and free float. Similarly, the Russell US Indexes,
including the widely-tracked large cap Russell 1000® Index and small cap Russell 2000® Index, remained
the benchmarks of choice for institutional US equity investors.
Product Implications
Based on the feedback received from the consultation, FTSE Russell proposes to proceed as follows:
RGI and Russell Frontier Indexes

Russell Global and Russell Frontier indexes will be decommissioned, and clients of RGI andRussell Frontier standard indexes will be transitioned to the FTSE GEIS and FTSE Frontier IndexSeries with a target of moving all clients by December 2018.
Index methodologies that were previously derived from RGI, including Russell Global Stability,
Russell RAFI, Russell-IdealRatings Islamic, will continue to be supported but will transition theirstarting universe from RGI to FTSE GEIS.
FTSE Russell will work closely with clients of RGI custom indexes to transition these benchmarks
either to a comparable FTSE index or to an index based on a FTSE GEIS selection universe with aview to moving affected clients by March 2019.
Consistent with the above proposals, the Russell Global and Russell Frontier indexes will not bereconstituted in 2018.

FTSE GEISIn September 2018, FTSE Russell will launch a new set of FTSE Global Styles Indexes based on
the widely adopted Russell Style Indexes methodology and using FTSE GEIS as the startinguniverse.
In the first half of 2018, the FTSE Global Micro Cap Index, including securities in developed andemerging countries, will be added to FTSE GEIS. The FTSE Global All Cap Index and FTSE Global
Micro Cap Index will together create the FTSE Global Total Cap Index which will fully cover theworld's investable equity opportunity set.

Over the coming months, FTSE Russell will liaise with those clients known to be affected by the proposal
to discontinue RGI based indexes in order to establish their optimum migration strategy. Once thisfurther stage of consultation has been completed, individual termination notices will be sent for eachindex family impacted. In the meantime, if you have any questions, please forward these toinfo@ftserussell.com.

For further information please contact FTSE Russell Client Services at info@ftserussell.com or call:
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