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[TSP_Strategy] Top Ten Countries in the I Fund

 

Chart of the Week

Top Ten Countries in the MSCI EAFE Index (as of 3/31/16)

Chart of the Week for April 22, 2016 - April 28, 2016

None of the top 10 MSCI EAFE index countries posted positive returns in the one-year period ended March 31, 2016 compared to three of the top ten countries posting positive returns in the one-year period ended March 31, 2015.

The Morgan Stanley Capital International ("MSCI") Europe, Australasia, and Far East Index ("EAFE") is a benchmark commonly used to measure non-U.S. developed country stock market performance and the MSCI Emerging Markets ("EM") Index is a benchmark commonly used to measure non-U.S. emerging country stock market performance. Each index consists of about twenty countries and a country cannot be a member of both benchmarks. The bar chart above shows the net performance in U.S. dollars for the one-year periods ended March 31, 2016 ("current" period) and March 31, 2015 ("prior" period) for the MSCI EM Index, the MSCI EAFE Index, and the top 10 non-U.S. developed countries. The top 10 countries were determined by their market capitalization in the MSCI EAFE Index as of March 31, 2016. The country with the largest market capitalization (Japan) is listed first, and the country with the smallest market capitalization of the ten countries reported (Sweden) is listed last.

From the perspective of a U.S. dollar-based investor, the EAFE Index lost 8.27% in the current period (dark blue bars above), in contrast with a loss of 0.92% in the prior period (lighter blue bars above). In the current period, no country posted positive returns. By comparison, in the prior period, three countries, Hong Kong (15.25%), Japan (12.06%), and the Netherlands (0.22%) posted positive returns. Global factors contributing to the current period negative returns included concerns about global growth and monetary policy that included negative central bank interest rates in Europe and Japan.

Emerging markets lost 12.03% in the current period, compared with a slightly positive return of 0.44% in the prior period. Current period returns were impacted by concerns in large emerging countries including declining economic growth in China, political unrest in Brazil, and the impact of falling oil prices in Russia.


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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

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