Publicly - traded emerging market affiliates of large multinational corporations (headquartered and mostly also listed in developed markets) have shown remarkably good performance over the last 14 years. These affiliates combined high performance with lower volatility, outperforming both their local market and the wider emerging markets, but not at the expense of significant greater down - side volatility. Their performance during the financial crisis was particularly good, compared to both their local markets and the developed markets, and especially so in Asia. In our analysis, we suggest two main reasons for this outperformance: improved corporate governance and a stabilizing role of the parent companies. Both seem critical specifically in financial crises. These may give these affiliates a clear comparative advantage over their local competitors that should endure in the foreseeable future.

Eoin Treacy's view It has long been the case that the publicly traded affiliates of multinational companies have been some of the best performers in the Indian market. The above report points out that this characteristic is shared by a number of countries. The confluence of world class corporate governance and access to the burgeoning middle classes of the world's fastest growing markets offers a powerfully attractive proposition for investors.

Don't miss the list of shares at the end of the report. I am in the process of adding those we do not have to the Chart Library. While the list is not exhaustive, it offers a good starting point for research into this theme. A number of the shares referred to in this list have become quite overextended relative to their respective 200-day MAs. The risk of a reversion toward that mean has increased but sustained moves below it would be required to question the consistency of medium-term uptrends.