Understanding the dynamics of a market helps ensure that recommendations made are consistent with a country’s history and culture and its existing legal structure. Simply replicating international standards, or laws and regulations from other countries may not suit a developing country.
Cadogan Financial always prefers to carry out a basic market survey to understand the context of a project. Nearly all its projects include such a preliminary survey. But we also carry out overall market surveys to establish what impediments there are to the more rapid development of institutional investors.
The broadest of these studies was an assessment as to how institutional investors can help develop capital markets in emerging economies. This reviewed the state of development of institutional investors – insurers, pension funds, investment funds - in emerging markets, identifying impediments to their development and made recommendations as to how to improve the potential for successful development of institutional investors and their contribution to capital markets in emerging markets.
We have also carried out comprehensive surveys of a number of specific markets to determine what impediments – legal, regulatory or operational - there were to more rapid development of institutional investors in countries such as Brazil, Kenya, Peru and Turkey.
