How domestic pension schemes are boosting EM appeal

EMERGING MARKETS

Emerging markets have long been blighted by their dependence on the international investor. Does the emergence of domestic pension schemes signal a reversal of this trend? Maria Merricks finds out.

There are many benefits of globalisation, from more free trade to the growth of multi-national companies. But the last few years have emphasised some of the perils. The global financial crisis really was a global affair, as inter-connected markets across the world plummeted in unison. Since the start of the crisis – and highlighted even more by the eurozone troubles of the past year – another by-product has materialised: dependence on the international investor. This dynamic has hit emerging markets particularly hard because, at times of market stress, investors take their risky asset...