This is a dramatic switch from the first half of 2002. Then, inflows into emerging market debt totaled a mere $403.6 million, while inflows into emerging market equity came to $87.5 million.
"The pipeline of searches and interest in emerging markets has increased dramatically," said Narayan Ramachandran, head of emerging markets equities at Morgan Stanley Investment Management, New York. "There should be more tangible interest and meaningful flows into emerging markets equities over the next two to three years."
Among the searches and hirings so far this year:
-- The $68 billion New York City Retirement Systems will select two money managers this fall to manage $700 million in emerging market equities;
-- Alfred I. duPont Testamentary Trust & the Nemours Foundation, Jacksonville, Fla., hired Lloyd George Asset Management, London to run a $45 million emerging markets equity portfolio for the $2.7 million endowment;
-- City of Zurich Pension Fund is looking for a manager to run a 50 million Swiss franc ($37 million) emerging markets equity mandate for the 10 billion franc pension fund;
-- The Abu Dhabi Investment Authority hired three emerging market debt managers to run a combined $1 billion in assets. The authority, with estimated total assets of $50 billion, hired UBS Global Asset Management, New York; Pacific Investment Management Co., Newport Beach, Calif.; and BridgePoint Capital Resources, New York;
-- The $4 billion San Diego County Employees' Retirement Association hired Ashmore Investment Management Ltd., London, for a $151 million emerging markets mandate;
-- Capital University in Columbus, Ohio, hired State Street Global Advisors, Boston, to manage an active emerging markets equity portfolio for its $34 million endowment;
-- The $180 million Brockton (Mass.) Contributory Retirement System recently hired The Boston Co. Asset Management to run a $5 million emerging markets equity portfolio for the $180 million pension fund;
-- Duke University's $4 billion endowment, Durham, N.C., gave a $75 million mandate to Ashmore this year; and
-- Stichting Lucent Technologies Pensioenfonds, Amsterdam, the €450 million ($517 million) pension fund of Lucent Technologies' Dutch subsidiary, hired Bridgewater Associates Inc., Westport, Conn., and Ashmore to each manage a $26 million mandate in emerging market local currency debt.
The biggest asset management players in emerging markets debt include PIMCO, which pulled in more than $1 billion in new money through May 31 for its portfolios; Ashmore, about $1 billion; J.P. Morgan Fleming Investment Management Inc., New York, about $792 million; Morgan Stanley Investment Management, about $340 million; Citigroup Asset Management, New York, about $250 million; and Grantham Mayo Van Otterloo & Co., LLC, Boston, about $200 million.