London headquartered Russell Investments, which developed the index, said while the index as a whole had returned 3.1% to 11 March, some of the individual countries within it had significantly outperformed others. This includes the UAE which had grown 23.2% over the nearly three month period and had risen 31% over the 12 months to 11 March.
Other top performers included the Philippines which had returned 20.2% year-to-date and almost 50% over 12 months, Thailand which delivered 17.5% year-to-date and 43% over the 12 months and Indonesia which grew 15.6% year-to-date and 20% over the year.
At the other end of the scale Egypt, Morocco and Peru saw their indices fall over both periods.
Egypt fell -6.1% year-to-date to 11 March and -5.4% for the last year, while Morocco fell -5.2% year-to-date and -19% for the last year. Peru meanwhile fell -3.9% year-to-date and-2.4% for the last year.
“The wide variation of performance within emerging equity markets since the beginning of the year as demonstrated through the Russell Indexes returns helps illustrate the diverse nature of investment opportunities and risks across less mature equity markets,” said Scott Crawshaw, emerging markets portfolio manager for Russell Investments.
“Although emerging markets on average have under-performed relative to developed markets in the U.S. and Europe this year, as demonstrated by Russell Emerging Markets Index returns relative to returns of the Russell 1000 Index, Russell 2000 Index and Russell Developed Europe Index, due in part to various factors such as the potential impact of a weaker Yen on emerging Asian country exports, it is important to remember the important role these markets can play within a multi-asset portfolio from a diversification and return perspective.
“And when you are seeking exposure to emerging markets, it is important to work with an active manager with the insight to help you evaluate these opportunities and put them into a broader multi-asset context.”
