Executives at deferred compensation plans in Connecticut and Montana are expanding the use of emerging markets securities in their funds.
These are examples of growing interest in the asset class among defined contribution plans, years after emerging markets found a place at the investment table of their defined benefit brethren.
"We have fund managers who dip into emerging markets," said Thomas Woodruff, director of the retirement and benefit division of Connecticut's State Employees Retirement Commission, Hartford, which oversees the state's $1.5 billion 457 plan. "Our Euro-Pacific fund from American Funds goes into emerging markets," he said.
Mr. Woodruff declined to quantify the amount going into emerging markets. But the plan recently allowed an emerging markets component to its asset allocation funds, he said. And more emerging markets investments might not be far off.
"Down the road, we may look at (emerging markets) as a core option, as well as various other sectors like natural resources and energy," said Mr. Woodruff.