Russell Emerging Markets Index Enjoys 4.5% Gain This Year

Notable countries in the Russell Frontier Index for year-to-date performance as of July 9th include Kenya (+30.8%), Pakistan (+22.6%) and Vietnam (+20.0%) on the upside, and Argentina (-19.6%) and Sri Lanka (-26.1%) on the downside.

“Investors have become increasingly concerned about falling growth and rising inflation in emerging markets,” says Sarah Lien, Senior Research Analyst for Russell Investments. “As a result, we have seen capital outflows and weakening currencies.

“Policymakers have had to balance loosening monetary policy to boost growth—Brazil has cut interest rates to a record low—with intervention in foreign exchange markets to support currencies,” she adds. “The stock market in Argentina has fallen nearly 20.0% this year, as investors removed capital after the interventionist approach of the Kirchner government.”