The Hindu Business Line : CalPERS to enter Indian equity market

THE California Public Employees' Retirement System (CalPERS), one of the biggest pension funds in the US with assets of $166 billion, has decided to invest in the Indian equity market. The CalPERS Board of Administration decided this on Monday.

Other emerging markets where CalPERS has decided to invest include the Philippines and Peru. CalPERS has approximately $2 billion invested in the emerging markets.

``These three countries have made significant progress and demonstrated that they now meet our high standards for investment,'' said Mr Sean Harrigan, President of the CalPERS Board of Administration. ``This is an example of our policy having a positive effect in the emerging markets,'' he said in a statement.

The Investment Committee Chairman, Mr Rob Feckner, expressed support for the emerging country evaluation process and said, ``we can and will do more to refine our process so that any emerging country that wants to be responsive to our standards has a timely opportunity to be considered.''

India and Peru moved to new global standards for trade settlement to settle trades one day after the trade date (that is T+2 settlement), it added.

Reacting to CalPERS decision, Mr Abhay Aima, Country Head (Private Banking), HDFC Bank, said, ``When outsiders look at India's growth story and decide to invest in India, it is a great development.''

Mr Bharat Shah, CEO and Managing Partner of ASK Raymond James Securities (an investment and wealth management firm), said, "Any institution of the size of CalPERS deciding to invest in India is good for us and the market.'' He said CalPERS being a provident fund, the character of the money will be long term and stable.

The emerging markets where CalPERS is investing are Argentina, Brazil, Chile, Czech Republic, Hungary, Israel, Jordan, Malaysia, Mexico, Poland, South Africa, South Korea, Taiwan and Turkey.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Open sky offer to close on April 30

Inflation to remain `below 5 per cent'

Tax collections cross Budget estimates — On target nearly after a decade, says Finance Secretary

IDFC sets up search panel for new MD

CalPERS to enter Indian equity market

ISO plans quality norms for call centres