A public pension fund’s decision to invest in emerging domestic markets is driven first and foremost by its fiduciary duty and overarching mission to achieve competitive financial returns for its pension fund retirees and beneficiaries. Public pension funds, as with any institutional fund, seek to outperform the market. Investments targeted to EDM can both achieve good returns and help overall fund performance by diversifying the pension fund’s portfolio. A well-diversified portfolio is made up of a spectrum of asset classes as a means of spreading risk across classes. Targeted investments in EDM can play a part in this strategy to.
