Emerging Markets End the Year with a Splutter

The leaders of the two politically troubled country: Yingluck & Erdogan.Source: Bangkok Scoop

The month started well for Emerging Markets equities as its performance was rivaling that of his Europe and US counterparts, until the real action began. Although Emerging Market equities tried to ignite its engines, its performance still fell far behind that of the Western market, delivering a negative return despite positive news.

The portfolio returns got dragged down by the drastically worsening situation in Turkey and Thailand. Shortly after the sell transaction took place, Turkey and Thailand stock market took another beating and lost another 10% and 3% within 2 weeks.

However, the damage is already done.

The portfolio would have achieved an annual return of 10% if not for our position in these two ill-fated countries and settle for a decent 9.25% return for the year.


This will be a short report as I will be working on the annual investment report where I will detail the investment strategy going forward for year 2014.
 
Wishing everyone a Happy & Prosperous 2014!