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Exhibit 4 EM country groups—performance metrics (unhedged JPY returns; February 2002–January 2017).

From: Emerging market equity benchmarks for Japanese investors: countries, sectors or styles?

  Country groups (cap-weighted) Benchmarks (cap-weighted)
Brazil China India Indonesia Korea Malaysia Mexico Russia South Africa Taiwan Thailand EM Equities Japan equities DM equities
Returns (annualized) 11.4% 11.7% 11.9% 17.8% 9.0% 6.4% 7.4% 7.5% 11.1% 4.9% 14.3% 8.74% 4.5% 5.6%
Risk (annualized) 37.0% 28.0% 30.6% 31.3% 28.2% 19.7% 24.7% 34.6% 26.7% 24.9% 26.7% 24.1% 18.4% 19.0%
Cap-weights 8.1% 26.8% 8.2% 2.5% 14.7% 2.5% 3.4% 4.3% 6.9% 12.1% 2.3%    
Sharpe ratio 0.30 0.41 0.38 0.56 0.31 0.31 0.29 0.21 0.41 0.19 0.53 0.35 0.23 0.28
Correl to EM 0.83 0.88 0.82 0.70 0.89 0.79 0.85 0.79 0.85 0.85 0.77 1.00 0.72 0.88
Correl to Japan 0.50 0.62 0.64 0.52 0.64 0.58 0.67 0.61 0.66 0.62 0.60 0.72 1.00 0.78
Correl to DM 0.68 0.74 0.71 0.61 0.78 0.72 0.84 0.70 0.74 0.78 0.68 0.88 0.78 1.00
Max. drawdown − 69.1% − 71.0% − 72.8% − 70.5% − 73.1% − 53.8% − 67.9% − 81.3% − 62.4% − 66.8% − 64.2% − 68.2% − 57.3% − 61.2%
  1. The cap-weights are as of 1/31/2017 for the MSCI EM index. To be mindful of the liquidity needs required for rebalancing and the size of a market footprint a large prudent investor may want in any single country, we limit our country list to the 11 largest EM countries (those countries having ~ $100 billion or more in market capitalization). Past performance is not a guarantee or a reliable indicator of future results. Chart is provided for illustrative purposes only