In this edition we take a look at the emerging markets and our cover feature examines the increasing interest Nordic investors are taking in both the emerging bond and equity arenas. In fact, in our first-ever pension and life insurance fund survey (see page 14), responses show that investors believe emerging market bonds will be the most attractive of all the fixed income asset classes over the next six months. They also expect Asian equities (excluding Japan) to pull in returns of 10 per cent by March next year.

Noticeably, for the 12 months up until the start of August, MSCI’s emerging market equity index returned in excess of 42 per cent, while FTSE’s emerging all-cap benchmark increased by a mighty 47.55 per cent in dollar terms – prompting investors, such as Sweden’s AP2, to make their first forays into the market.

We also speak to Kari Puro, Ilmarinen’s president and CEO, who is leading an investigation into the modernisation of Finland’s regulatory framework for pensions and ask him and six other leading industry figures as to whether they believe that existing regulations do in fact need amending, if it is right to encourage Finnish equity investors to invest domestically and whether regulations covering direct property investments are in line with the current investment environment.

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