Geopolitical concerns in Eastern Europe continued to rumble on during the month as reports continued to emerge of further violence in Ukraine whilst an imminent conclusion to the situation looks unlikely. Despite this continued confrontation, both the Ukrainian PFTS and the Russian MICEX equity bourses saw solid gains in May, rising +10.7% and +9.6% respectively. Emerging markets have been somewhat unloved in 2014, although sentiment has turned notably more favourable of late. May saw solid gains for two of the BRIC constituents; Russia’s MICEX rose sharply as mentioned and India’s Nifty delivered impressive gains of +7.9%. The Shanghai Composite added +0.63% leaving the Brazilian Bovespa as May’s laggard, down -0.75%. However, despite this general renaissance in emerging markets, by month end the Nifty was the only one of the four showing gains in 2014, far out in front with +14.68% ytd.