It may have started off as an acronym to describe the main emerging markets in the early noughties but Brazil, Russia, India and China have co-opted the term to create an alliance over the last decade or so bringing South Africa into the fold.

This BRICS alliance just added new members to the fold in the form of Egypt, Iran, Ethiopia, Saudi Arabia and United Arab Emirates.

But looking at the performance of the four original members – Brazil, Russia, India, China – over the last decade is an interesting exercise – with Russia something of an outlier for obvious reasons – and instructive given the weight they carry in the emerging markets universe.

For China we have used the CSI 300 index which could be considered a better gauge for Chinese stocks than the SSE Composite index.

A similar exercise two years ago revealed India as the clear winner, with China a close second and Brazil in third. Looking at the last decade though, Brazil and China have swapped places. India remains out in front with upcoming elections this spring likely to reinforce the position of the ruling BJP party and its leader Narendra Modi. Both are seen as playing a key role in delivering economic and market reforms in the country.

This outlook is part of a series being sponsored by Templeton Emerging Markets Investment Trust. For more information on the trust, visit www.temit.co.uk

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