Accounting for Geographic Exposure in Performance and Risk Reporting for Equity Portfolios

Accounting for Geographic Exposure in Performance and Risk Reporting for Equity Portfolios — March 2015

Section 2: Application to Performance and Risk Reporting

Figure 15: STOXX Europe 600 (Developed/Emerging Breakdown)

Figure 16: STOXX Europe 600 (Developed/Emerging Breakdown)

exposed to Emerging markets (companies with less than 50% exposure to emerging markets) has increased from 3.16% in June 2004 to 8.49% in June 2013 (see Appendix: Table 18). For FTSE 100 companies (Figures 19 and 20), the sales exposure (or cap-weighted sales exposure) to emerging markets has more than doubled from 10% (10%) in FY2003 to 22% (24%) in FY 2012. Also the upward trend in exposure to emerging

Similarly, for FTSE Developed Asia Pacific companies (Figures 17 and 18), the exposure to emerging markets has doubled from 8% (8%) in FY2003 to 17% (21%) in FY 2012. However, the upward trend in exposure to emerging markets is relatively less smooth (compared to the other two indices), where in a few years the exposure to emerging markets has dropped compared to the previous year. Also we find that the weight of stocks of companies in the index which are majorly

Figure 17: FTSE Developped Asia Pacific (Developed/Emerging Breakdown)

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