Sector report: alternatives to emerging market equities

Following strong performance towards the end of 2012, emerging markets have lagged developed markets thus far in 2013. Year-to-date to the end of April, the MSCI Emerging Market (MSCI EM) index has fallen 0.9% in US dollar terms, while the MSCI World index for developed country stocks has returned 11.1%. One negative factor has been the performance of the BRIC country constituents (Brazil, Russia, India and China), all of which have posted weak year-to-date returns. China represents 18% of the MSCI EM index and this has been a drag as the MSCI China index has declined 3.5% for the first ...