We've written (most recently here) about all the buying interest that emerging markets have been getting from once-conservative investors such as pension funds and central banks. Last year's taper tantrum, caused by Fed hints about ending bond buying, did not apparently deter these investors . In fact, as mom-and-pop holders of mutual funds rushed for the exits, there is some evidence pension and sovereign wealth funds actually upped emerging allocations, say fund managers. And requests-for-proposals (RFPs) from these deep-pocketed investors are still flooding in, says Peter Marber, head of emerging market investments at Loomis Sayles.
from Financial Regulatory Forum:
By Sven Egenter
ZURICH, Jan 26 (Reuters) - Private capital inflows to emerging markets are set to soar by two thirds this year as countries like Brazil and China drive global recovery and fuel "hot money" risks, the Institute of International Finance (IIF) said on Tuesday.