Emerging Markets Outperform Developed


    The ‘Russell Emerging Markets Index’ returned 13.1 per cent in 2014 year-to-date as of November 6, outperforming developed markets in the U.S. and Europe, says its ‘Developed Europe Index’ and the ‘Russell 3000 Index.’ Gustavo Galindo, its emerging markets portfolio manager, says “Emerging markets have benefitted from a combination of positive market catalysts thus far in 2014. Despite strong year-to-date performance, emerging market valuations are still cheaper and these markets are still trading at a significant discount relative to the U.S. and other developed markets. Investor sentiment has continued to improve, with more investment flowing into the region, particularly in recent weeks. The Indian equity market has benefitted from recent election results and, despite Rouseff’s narrow re-election in Brazil and interest rate hikes in Brazil and Russia, emerging markets continue to exhibit strong momentum.”