The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Calpers backtracks on investing in the Philippines


Two months after declaring the Philippines a country unable to support institutional investment, Californian pension fund Calpers, one of the world's biggest investors, announced that it had made a mistake and that it did in fact consider the country a "recommended permissible market".


Its controversial decision to withdraw from the Philippines in February resulted from a review of the criteria of its permissible country list begun in August 1999. These aim to assess which emerging markets can support institutional investment. Following the review, Calpers' investment committee decided in principle to adopt recommendations to include measurements of political stability, transparency, and "productive labour practices" in its evaluation criteria.


Calpers denies that its decision to include these factors was ethically motivated, arguing that they contribute towards a market's ability to support investment, but its exact definition of the criteria led to widespread criticism from the southeast Asian media of moralistic posturing by the pension fund.


Calpers' definition of political stability mentions such factors as "progress towards the development of basic democratic institutions and principles", the "guaranteed elimination of human rights violations", the degree of civil liberties, the independence of the judiciary, and government stability - in that order.





You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree