"Pension reform in several emerging market countries has been associated with rapid growth in assets under management and a positive impact on the development of local securities markets." (Roldos, 2004) Finally, the stability of many international securities, located in Britain, Switzerland, or Germany, to take only a few examples, means that using the diverse potential of international investment opportunities does not necessarily entail a high risk. However, many international sources of revenue tend to be more unpredictable in their returns. A pension fund's security, especially for an older man or woman with retirement on the horizon must be of primary importance. Secondly, international developments can...

And finally, international securities may be less tightly regulated in terms of their ethical scrutiny by the local governments, leading to "price distortions, bubbles," and hence greater investment risks. (Roldos, 2004)
Works Cited

China's Pension Fund to Invest Abroad." (10 October 2006) International Business

Times. Retrieved 25 Nov2006 at http://www.ibtimes.com/articles/20061010/china-039-s-state-pension-fund.htm

Roldos, Jorge. (Sept 2004). "Pension Reform, Investment Restrictions, and Capital

Markets." IMF Policy Discussion Paper. Retrieved 25 Nov2006 at http://www.imf.org/external/pubs/ft/pdp/2004/pdp04.pdf