2017 was the best performing year for Emerging Markets equity since 2009, both in absolute and relative terms. The MSCI Emerging Markets index returned 7.5% and outperformed the MSCI World by 14.4%. Just as noteworthy was the nature of the market rally which was almost entirely driven by corporate earnings growth with little multiple expansion. Consequently, in 2018 investors are being asked to pay still reasonable valuations for improving economic fundamentals, well supported earnings growth and the potential for another strong, albeit likely more modest, year of returns.