Many investors believe that China is currently under -
represented in global
equity indices relative to its economic influence (for example, China
represents roughly 17 % of global GDP, 11 % of global trade, and 9 % of global consumption but today comprises only a 3.5 % weight in the MSCI ACWI Index).1, 2 Given the size of the China A-shares market, inclusion in global indices is regarded as key to bringing China's overall representation more closely in
line.
The
line in the graph above
represents the average dispersion for the calendar year in question; the bars
represent the interquartile range (i.e. the 25th percentile minus the 75th percentile) of large cap core
equity managers in our year - end SPIVA survey.