Article: MANAGERS ANTICIPATING HUGE DEMAND; More pension funds expected to embrace the strategy in the next five years.(News)

Byline: Thao Hua

MONEY MANAGERS ARE adding more arrows to their emerging-markets quiver as they anticipate institutional investor demand for such strategies to escalate.

"My sense is that there are adequate products for the interest you have today, but that will change in the midterm period [of about five years], in which you'll have enhanced demand, said Paul Matson, executive director of the $23 billion Arizona State Retirement System. "Furthermore, as emerging markets improve their domestic infrastructures, there will be more opportunities from the supply side and as a result, more products available.

Consultants expect more pension funds ...

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