The stock of Anchorage-based Northrim Bancorp Inc. is slated to get a higher profile among investors when it is added to the Russell 2000 and Russell 3,000 indexes, which are benchmarks of stock market performance that many money managers follow. Companies typically find that after being added to popular indexes their stock is more in demand by investors -- typically large institutional investors -- who want their portfolios to match the returns of the index. For example, the investment of some of Alaska's $30 billion Permanent Fund savings account is indexed to the Russell 2000, a compilation of about 2,000 smaller companies that are traded on the stock exchanges. The companies that comprise the Russell 2000 are also part of the Russell 3000 index, another prominent benchmark that also includes larger companies.
Two other Anchorage businesses are part of the Russell 2000 and 3000 indexes: The telecom companies ACS and GCI.
A spokesman for Russell Investments said the adding of Northrim to the indexes is for one year, at which point it will be reviewed. Northrim is scheduled to be added as of June 29.
The price of Northrim stock jumped 5.7 percent Wednesday, closing at $15.12, up 82 cents for the day.
No one from the banking company returned a call for comment about the new listing Wednesday.
Anchorage Daily News / adn.com