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Exhibit 10 Systematic market exposures (February 2002–January 2017).

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

  Relative to 50% DM-ex JP and 50% JP equities
EM countries EM sectors EM styles EM equities
Beta 1.12 1.09 1.10 1.16
Alpha 6.2% 4.5% 6.0% 3.5%
R-squared 0.74 0.74 0.73 0.74
  1. EM country, sector and style benchmarks are ERC weighted, and EM equities are market-capitalization weighted. The transaction costs are estimated using average turnover, bid–ask spreads and taxes (refer to online supplement A4). We estimate transaction costs to be 1%/y for EM styles. Chart is provided for illustrative purposes only