• Global emerging markets delivered -5.6% (AUD) in 2018, reflecting a weaker second half.
  • Significant dispersions were noted across regions, countries, sectors and styles.
  • Latin America was the only region to deliver positive returns in 2018 whilst all other regions suffered losses.
  • ESG & SRI thematic factors fared much better than other factors and styles whilst Low Volatility funds suffered a major rotation from 2017.
  • Volatility trends across major countries continue to rise, offering opportunities for active managers and asset allocators.
  • India’s correlation with overall EM market steadily rises, reflecting its importance in the region.

Significant dispersion between top & bottom ranking nations; Global EM experienced losses holistically

In 2018, Global EM equities returned a loss of -5.61%. Latin America was the only region to experience positive returns (3.80%) whilst Europe, Middle East and Africa and Asia delivered losses of -6.80% and -6.07%, respectively. At a country level, Qatar offered the highest returns to investors of 45.22% followed by Peru (12.83%), Brazil (10,56%) and Russia (10.32%). In contrast, Turkey (-34.90%), Greece (-29.83%) and Pakistan (-27.55%) were the three worst performers. There was a significant amount of dispersion between the top and bottom ranking countries.

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