11th February 2013
A note from Russell shows that the Russell Frontier® ex-GCC* Index has returned 8.83 per cent year-to-date as of February 6th, outperforming the Russell Emerging Markets Index (-0.31 per cent) by more than 9 per cent. It adds that within each index certain country constituents have significantly outperformed the region as represented by the parent index.
Frontier ex-GCC markets Vietnam (+18.60 per cent), Nigeria (+17.70 per cent) and Argentina (+12.77 per cent) have led country constituent year-to-date for the Russell Frontier ex-GCC Index, while the Ukraine (+1.49 per cent), Pakistan (+0.62 per cent) and Tunisia (-0.21 per cent) have trailed within the Index for the same time period.
Emerging markets United Arab Emirates (+11.83 per cent), Philippines (+10.49 per cent) and Thailand (+8.22 per cent) have been the strongest performing country constituents year-to-date for theRussell Emerging Markets Index, while South Africa (-4.38 per cent), Korea (-5.86 per cent) and Malaysia (-5.98 per cent) have trailed within the Index for the same time period. Within the RussellEmerging Markets Index, country constituents the Philippines, Thailand, Mexico and Columbia have all hit new all-time historical price level highs since the beginning of the year.
The Russell Developed Europe Large Cap Emerging Markets GeoExposure Index, designed to track the performance of companies within its parent index the Russell Developed Europe Large Cap Index with significant revenue exposure to emerging markets, has returned 3.23 per cent year-to-date as of February 8th.
Scott Crawshaw, emerging markets portfolio manager for Russell Investments says: “The wide variation of performance within emerging and frontier equity markets since the beginning of the year as demonstrated through the index returns helps illustrate the diverse nature of investment opportunities across less mature equity markets, while the Russell Developed Europe Large Cap EM GeoExposure Index returns for the same time period help illustrate the different experience an investor may have by tapping ‘indirectly’ into emerging markets through developed markets’ companies” “And whether you are seeking direct or indirect 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.”
Russell Indexes Performance
Russell Index / Country Constituent
2013 YTD Return as of 8/2/13
|Russell Developed Europe Large Cap EM GeoExposure Index||3.23%|
|Russell Emerging Markets Index||
|United Arab Emirates||11.83%|
|Russell Frontier ex-GCC Index||8.83%|