Fri, Aug 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

MSCI Indices show substantial advances in global equities, except Emerging Markets

Friday, December 27, 2013
Opalesque Industry Update - MSCI Inc., a provider of investment decision support tools worldwide, today published the year-to-date (YTD) 2013 performance of its MSCI Indices, displaying substantial advances in global equity markets, with the exception of Emerging Markets.

The flagship MSCI global index, MSCI ACWI IMI—comprised of over 8,500 large, mid and small cap securities across 23 Developed and 21 Emerging Markets countries—showed healthy double digit returns, delivering a 2013 YTD return of 19.58%, following its 2012 gain of 13.70%.

As in 2012, the MSCI ACWI Small Cap Index bested all other MSCI ACWI index capitalization segments for 2013 YTD, with a return of 25.09% versus returns of 20.76% and 18.37% over the period for the MSCI ACWI Mid Cap and Large Cap Indices, respectively.

Among global sectors, the top performers for 2013 YTD were the MSCI ACWI IMI/Healthcare and the MSCI ACWI IMI/Consumer Discretionary Indices, which returned 32.83% and 32.74%, respectively. The single sector index with negative performance was the MSCI ACWI IMI/Materials Index, which returned ‑3.36% for the period.

Developed Markets

A wide range of regional and country MSCI Developed Markets (DM) Indices delivered strong positive returns in the double digits for 2013 YTD. The MSCI World Index, for example, posted a return of 22.50%, while the top performing regional index, the MSCI North America Index, returned 26.56%. The highest DM country performers included the MSCI Finland, Ireland and USA Indices, with returns of 38.99%, 36.73% and 28.79%, respectively.

The MSCI DM Small Cap Indices handily outperformed their mid and large cap counterparts across the majority of countries and regions for 2013 YTD. The MSCI USA Small Cap Index was the top performer, for example, with a 2013 YTD return of 35.74%, while the MSCI World Small Cap Index produced a return of 28.80% over the period, which was 28% higher than that of the MSCI World Index.

Frontier Markets

The MSCI Frontier Markets (FM) Indices produced widely dispersed 2013 YTD results, with the majority of regions and countries in positive territory. The MSCI Frontier Markets Index returned 20.53% over the period, closely followed by the MSCI Frontier Markets 100 Index, which returned 20.37%. The MSCI Frontier Markets Africa Index was the top-performing regional FM index, delivering a return of 23.49% for the period. The top three single country FM index performers for 2013 YTD included the MSCI Bulgaria, UAE and Argentina Indices, which returned 91.55%, 79.02%, and 68.97%, respectively. The lowest performing FM countries were the MSCI Tunisia and Ukraine Indices with 2013 YTD returns of ‑12.44%, and -18.52%, respectively.

Emerging Markets

A majority of the regional and country MSCI Emerging Markets (EM) Indices posted negative 2013 YTD returns. The MSCI Emerging Markets Index lost -5.67% over the period—and this figure was slightly higher than the average return across the EM constituent regions and countries. Four EM countries did show positive returns in the low single digits, including the MSCI Egypt Index, which posted a 7.17% return for the period, and the MSCITaiwan, Korea, and Malaysia Indices, which returned 3.78%, 2.51%, and 2.09%, respectively. One EM outlier was the MSCI Greece Index, which migrated from the developed markets to the emerging markets in November 2013 and posted a return of 37.88%.

The MSCI China Index[2], which comprises approximately 20% of the MSCI Emerging Markets Index, delivered a slightly negative return of -0,20%; the domestic MSCI China A Index[3] delivered a slightly lower return of -2.53%. The top performing EM region was the MSCI Emerging Markets Far East Index, which returned 0.57% over the period.

Reinforcing the global trend of small cap dominance, the MSCI EM Small Cap Index outperformed its large- and mid-cap sibling (the MSCI EM Index), returning -2.07% for 2013 YTD.

Factor Indices

Relative to their market cap weighted parent indices, the suite of MSCI Factor Indices performed variously in different markets. For example, against the backdrop of significant upward trends in the regions and countries of the developed markets, the MSCI Momentum Indices handily outperformed their parent indices over the YTD 2013 period in these DM markets. Similarly, MSCI Value Weighted and Quality Indices generally showed modest outperformance relative to their parents in the developed markets. The MSCI Minimum Volatility Indices, on the other hand, generally underperformed their parents in developed markets and outperformed their parents in emerging markets, which showed substantially negative 2013 YTD performance.

Historical index levels for the full range of MSCI Indices are available at www.msci.com

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 – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added