Emerging market outlook

Emerging economies will eclipse developed economies as a percentage of world GDP in 2013, according to forecasts.

For the five years ended April 30, the MSCI Emerging Markets index returned a compound annual 12.6%, compared to 3.6% for the S&P 500. However, the EM index had a standard deviation of 36.4% compared to 28.1% for the S&P 500.

Since 2006, emerging markets equity and debt allocations have grown 13.5% and 10.2%, respectively, each year.

Among the top 10 countries in the MSCI Frontier Markets index, Bangladesh and Kenya are expected to experience the highest economic growth.