Wed, Sep 20, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

2010 MSCI Indices reveal Europe significantly underperformed the USA, and emerging and frontier markets show strongest recoveries

Wednesday, December 29, 2010
Opalesque Industry Update - MSCI Inc., a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, today published the year-to-date performance of its MSCI indices, revealing a moderate recovery of the global equity markets in 2010.

Globally, major financial markets continued to recover in 2010, but at a substantially slower pace than in 2009. This muted recovery was marked by moderate year-to-date performance results for all major regional MSCI indices across different size segments. The MSCI All Country World Investable Market Index (ACWI IMI), which combines 24 Developed and 22 Emerging Markets across large, mid and small cap size segments, delivered a 2010 year-to-date performance of 11.4% versus 31.5% in 2009.

Developed Markets exhibited the weakest recovery in 2010. The MSCI World Index posted a relatively modest year-to-date return of 9.2% compared to a return of 27.0% in 2009. Within Developed Markets, the MSCI Europe Index significantly underperformed the MSCI USA Index year-to-date, posting a return of 0.4% versus a return of 13.2% for the MSCI USA Index. Europe’s relatively poor 2010 performance record is mainly explained by the sovereign debt crisis that impacted countries such as Greece, Spain and Ireland, which all posted negative year-to-date MSCI index returns of -47.2%, -26.6% and -20.4%, respectively. In contrast, the MSCI Sweden Index was the top performing index among Developed Markets, with a year-to date-performance of 29.0%.

Emerging Markets maintained its recovery in 2010, with year-to-date performance of 13.8% for the MSCI Emerging Markets Index versus a return of 74.5% in 2009. The MSCI Thailand and the MSCI Peru Indices were the best performing indices year-to-date, showing returns of 49.9% and 47.8%, respectively. The MSCI Hungary Index was the worst performer year-to-date with a return of -12.0%, followed by the MSCI Czech Republic Index with a -11.0% return.

Frontier Markets, which significantly lagged Developed and Emerging Markets during 2009 with a return of just 7.0%, posted the strongest returns in 2010. The year-to-date return for the MSCI Frontier Markets Index was 18.3%. The strongest regional performance within Frontier Markets came from Africa. The MSCI Frontier Markets Africa Index showed a year-to-date return of 19.5%. The top performer within Frontier Markets was the MSCI Sri Lanka Index with a positive 73.2% return, while the bottom performer was the MSCI Bahrain Index with a negative return of -23.0%.

In terms of size, the MSCI Global Small Cap Indices appreciably outperformed the MSCI Global Standard (Large + Mid Cap) Indices across all regions, just as they did in 2009. The MSCI ACWI Small Cap Index outperformed its large and mid cap counterpart, MSCI ACWI, by more than ten percentage points, year-to-date, posting returns of 23.2% versus 9.7% for MSCI ACWI. In 2009, the MSCI ACWI Small Cap Index returned 48.0% while MSCI ACWI returned 31.5%.

The weak performance of the Euro relative to the US Dollar contributed substantially to the negative returns of the MSCI EMU Index in 2010. Year-to-date, the Euro depreciated 8.4% relative to the US Dollar. In contrast, the Japanese Yen appreciated 11.1% relative to the US Dollar over the same time period.

(press release)

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutions - Canada's pension funds lever up[more]

    From Institutionalinvestor.com: Canadian pension plans are among the most admired institutional investors for their prowess as money managers. Now pension plans in Canada are upping the ante, increasingly issuing long-term bonds and using the borrowed money, or leverage, to try a

  2. Manager Profile - The three quants in their 20s running a hedge fund making $1 billion of trades daily[more]

    From Forbes.com: In an office overlooking downtown Boston, the views are partially obscured by math formulas and technical drawings that have been scribbled on the windows. Wearing a T-shirt with the words "machine earning" printed on it, Luca Lin says the formulas are being developed to help trade

  3. News Briefs - Iron Cove Partners launches hedge fund manuscript management & professional liability insurance policy, Private equity, hedge funds eye bizav financing market. Blue Capital halts ILS fund buy-backs as hurricane Irma approaches[more]

    Iron Cove Partners launches hedge fund manuscript management & professional liability insurance policy Iron Cove Partners, a national insurance brokerage specializing in the needs of the alternative asset management community, today announced the launch of its newest insurance product, th

  4. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  5. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De