Since the recession, emerging-market economies have accounted for two-thirds of global economic growth – up from just one-third at the turn of the millennium. Emerging market economies also account for one-half of the growth in global imports.
11 Mutual funds holding relatively less liquid assets is one area of focus. Despite having share prices that move with market prices, these funds can give rise to first-mover advantages for redeeming shareholders and create the potential for destabilizing waves of redemptions and asset fire sales if liquidity buffers and other tools to manage liquidity risk prove insufficient.