Although emerging markets have underperformed developed global equity markets thus far in 2013, the gap is narrowing, according to Russell Indexes.

And in September to date, emerging markets have actually outperformed developed global markets as illustrated by the Russell Emerging Markets Index and the Russell Global Developed Index.

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The Russell Emerging Markets Index lost (-2.4%) year-to-date as of September 17, as compared to a 17.3% return for the Russell Global Developed Index for the same time period.

For the third quarter as of 17 September, however, the gap has narrowed. The Russell Emerging Markets Index returned 4.5% as compared to a 5.9% return for the Russell Developed Index. And in September as of 17 September, the Russell Emerging Markets Index returned 6.4%, outpacing the Russell Developed Index (+4.0%) by nearly 2.5%.

Emerging Markets Index country constituents Greece (+18.8%), Poland (+13.3%), China (+12.4%) and Russia (+11.7%) have led Index in terms of return since the beginning of the third quarter.

In addition, the current 1 year forward weighted average price to earnings ratio for the Russell Emerging Markets Index is 17.9 as compared to a 21.9 P/E for the Russell Global Developed Index. This widens the gap from 2 January 2013, when the P/E ratios for these two indexes were 17.5 and 18.0, respectively.

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Gustavo Galindo, emerging markets portfolio manager at Russell Investments, said: "China has been a major contributor to the performance of the Russell Emerging Markets Index in recent months, due to its size within the Index and its strong influence on investor confidence in the region.

"As investors appear to have adjusted to the prospect of slowing growth and negative news on China has ebbed, Chinese equities have benefitted. A better China picture, improving fundamentals and attractive valuations relative to developed global markets help underscore the continued important role emerging markets can play as part of a broadly diversified global multi-asset portfolio," Galindo added.