DM and EM Knowledge Leaders Outperformance Continues to Widen

This last week has seen some volatility in markets thanks to China and Greece and as we noted earlier, 54% of EM stocks are in a bear market. Yet, despite heightened volatility in both the emerging and developed markets, Knowledge Leaders continue to perform well. Over the last year the Gavekal Knowledge Leaders Developed World index – an equally weighted, diversified index of the world’s most innovative DM companies – has outperformed the MSCI World Index by about 6.6%. The Gavekal Knowledge Leaders Emerging Markets index – an equally weighted, diversified index of the world’s most innovative EM companies – has outperformed the MSCI EM index by 4.9%.

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