Issue link: http://read.jpmorgan.com/i/454726
J . P . M O R G A N A S S E T M A N A G E M E N T 1 3 EXHIBIT 7: CHINA AND BRAZIL ILLUSTRATE THE MISMATCH BETWEEN COMPOSITION OF ECONOMIC ACTIVITY AND MARKET CAPITALIZATION Performance for 2013 calendar year in USD CHINA Economic Activity Performance BRAZIL Economic Activity Performance 0% 5% 10% 15% 20% 25% 30% 35% 40% Info Tech Utilities Health Care Consumer Staples Industrials Consumer Disc. Financials Telecom Energy Materials Info Tech Utilities Health Care Consumer Staples Industrials Consumer Disc. Financials Telecom Energy Materials Agriculture Industry Services 10% 45% 45% 0% 5% 10% 15% 20% 25% 30% 35% 40% Agriculture Industry Services 6% 26% 69% 35% 15% 13% 12% 6% 5% 5% 4% 3% 2% 34% 17% 15% 12% 6% 5% 5% 3% 3% 1% EXHIBIT 6: RETURNS BY INDUSTRY (AND THEREBY COUNTRY RETURNS) HAVE VARIED WIDELY Periodic table of annual industry performance during the past 10 years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 10 Yr Growth Annualized 10 Yr Growth Energy 30% Energy 33% Utilities 34% Materials 38% Health Care -21% Materials 69% Consumer Discretionary 26% Health Care 9% Financials 30% Consumer Discretionary 37% Energy 191% Energy 11% Utilities 30% Materials 21% Telecom 32% Energy 35% Consumer Staples -24% Information Technology 58% Industrials 24% Consumer Staples 8% Consumer Discretionary 24% Health Care 37% Consumer Staples 184% Consumer Staples 11% Telecom 21% Industrials 15% Materials 29% Telecom 28% Telecom -35% Consumer Discretionary 46% Materials 23% Telecom 0% Health Care 19% Industrials 30% Consumer Discretionary 151% Consumer Discretionary 10% Industrials 21% Utilities 14% Financials 26% Consumer Staples 19% Utilities -40% Financials 39% Consumer Staples 14% Energy -2% Industrials 16% Information Technology 27% Health Care 141% Health Care 9% Financials 19% Financials 14% Consumer Staples 22% Industrials 19% Energy -40% Energy 34% Energy 12% Information Technology -4% Information Technology 16% Telecom 24% Industrials 139% Industrials 9% Materials 19% Health Care 11% Consumer Discretionary 21% Information Technology 14% Consumer Discretionary -42% Industrials 29% Telecom 12% Utilities -4% Consumer Staples 15% Financials 23% Materials 134% Materials 9% Consumer Discretionary 17% Information Technology 8% Energy 20% Utilities 12% Information Technology -44% Consumer Staples 25% Information Technology 12% Consumer Discretionary -5% Materials 12% Consumer Staples 19% Telecom 121% Telecom 8% Consumer Staples 13% Consumer Staples 7% Industrials 20% Health Care 6% Industrials -45% Health Care 21% Financials 7% Industrials -10% Telecom 9% Energy 15% Information Technology 104% Information Technology 7% Information Technology 7% Consumer Discretionary 5% Information Technology 11% Consumer Discretionary -2% Materials -50% Telecom 16% Health Care 4% Financials -19% Energy 4% Utilities 12% Utilities 66% Utilities 5% Health Care 6% Telecom -4% Health Care 10% Financials -5% Financials -53% Utilities 13% Utilities 1% Materials -21% Utilities 3% Materials 0% Financials 47% Financials 4% Source: J.P. Morgan, FactSet, MSCI; December 31, 2003 to December 31, 2013. A P P E N D I X Source: J.P. Morgan Asset Management, FactSet, MSCI China and MSCI Brazil Indices, GICS Sector Weights. Data as of August 31, 2014.