Additional progress is expected in 2010 on top of impressive 2009 gains

Last year was a stellar year for emerging equity markets.

In US dollar terms, the MSCI EM Index has risen by 66.9% year to date. Despite the impressive gains made in 2009, we believe there is scope for emerging equity markets to make additional progress and to continue to outperform developed equity markets in 2010. The economic outlook for developing countries is impressive particularly when compared to the lacklustre growth outlook for developed countries. According to its October 2009 World Economic Outlook, the IMF is predicting GDP growth of 1.7% in 2009 for the developing world and a rebound to 5.1% in 2010. This compares with expectation...