Emerging markets eyed by pension funds

According to the Thursday's Financial Times, the third largest public pension fund with a total of US$ 154 bi, California Public Employee's Retirement System (Calpers), is considering 12 emerging markets to invest (other than China, India and Russia).

The best countries were chosen: (in this order) Poland, Chile, Czech Republic, Hungary, Israel, Jordan, Malaysia, Mexico, South Africa, South Korea, Taiwan and Brazil. Turkey, Argentina and Peru were discarded due to political stability, workers laws, transparency, liquidity and volatility.

Emerging markets have just 5% of global stock capitalization and their quality is improving with better accountability and transparency.