CalPERS says it’s foolish to avoid India...............

I thanks Prashant to bring this article to my notice....which again vindicates my stand that we are in a big secular bull run and nothing to worry.
The fall we saw was absolutely due to F&O margins call due to overleveraged position.

CalPERS says it’s foolish to avoid India; wants half of its $150bn in equities to be in emerging markets n $436bn TIAA-CREF has put in $500m
NEW YORK: As the US economy struggles to find its footing, pension fund managers are straying further afield to locate safe havens.
They are expected to allocate record amounts this year to emerging markets such as India and China.
TIAA-CREF, one of the biggest pension funds in the US with $436 billion under management, is a case in point.
“We have increased our investments in emerging markets from very little a few years ago to more than $4.5 billion today. We are hoping to increase it (further),” Brett Hammond, managing director and chief investment strategist of TIAA-CREF, told DNA Money on the eve of a week-long trip to Mumbai.
“For India, we have gone from nearly nothing to nearly 500 million today,” he said.
“We are looking to tap the potential of large-cap growth stocks in the BRIC countries. They have been doing well and we think there is room to grow.”
Bargain Indian financial service stocks are likely to be on the fund’s radar. (Likes of Khandwala sec....)
According to company officials an increase in allocations to the BRIC economies —- Brazil, Russia, India and China —- is on the cards through the launch of a new emerging markets fund later this year.
Hammond said the fund was not unduly concerned by the current volatility in emerging markets linked to fears about a recession in the US.
“We believe India has a good investment climate. As a pension fund we are very conservative. We are not the first to go anywhere but when we do make a commitment — we stay. We are not hot money. We have been looking at India for a long time and we have gotten to the point where we are very excited.”
TIAA-CREF, one of the biggest buyers of commercial real estate in the US, has designs on Indian bonds, equities and real estate.
“At this point, we are looking more at India securities. But, this does not preclude an interest in other things. We are the second biggest buyers of commercial real estate in the US. We have expanded into Europe. And, we are looking to invest next into Asia,” said Hammond who is travelling this week to Mumbai to deliver a keynote address on “The Pension Fund Perspective on India” at a CII-sponsored conference.
The California Public Employees’ Retirement System (CalPERS), which is the largest public pension fund is keen to get out of developed market assets and into emerging markets.
Russell Read, chief investment officer of CalPERS, said at a meeting in California that it is “internationalising” its investment portfolio to score higher returns with the help of emerging markets.
“You have to capture the big investment themes,” Read told the meeting. “Our expectation is that opportunities will remain quite good overseas.”
Says Clark McKinley of CalPERS told DNA Money: “We would be stupid to ignore India, which is growing at a fabulous rate. We have a global equity portfolio of $150 billion, two-thirds of that is in US stocks; one-third of it is in international and emerging markets. There is a proposal before the board to put half of our portfolio into international and emerging markets.”
The San Francisco Employees’ Retirement System (SFERS) pension fund with assets of more than $12 billion is also looking at India.
“The big time winners are likely to be the large-cap companies in emerging market countries like India and China. There is an upside for investors who know where to look,” said a fund manager in SFERS, who felt the equity markets in emerging countries were in early stages of a first quarter trough.
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My comments:
I have been giving all evidences eversince the Mayhem of last 10 days has happened that Bull run is still in tact......This is one other testimony of that.....what much more one wants...............
Rajeev