A critical step in building capital markets is to develop the “buy side,” encouraging greater participation by local institutional investors such as pension funds and insurance firms. But limited supply of investment vehicles can be a major challenge to developing the buy side in emerging and frontier markets. Findings from a recent survey by the Milken Institute of 44 institutional investors in four East African Community (EAC) countries—Kenya, Rwanda, Tanzania, and Uganda—highlight this unmet demand for more “product,” especially more longer-term investment vehicles. Investors have also expressed a desire for more products designed in a way that better matches their investment aims.
Savings managed by local institutional investors in these countries have nearly doubled in just four years, to about $19 billion by early 2016. Read more. Source | Brookings