Fund would be the largest ever to focus on the region and comes as rivals raise megafunds.

Move is expected to eliminate mandatory pension funding through 2021.

Plan earns $851 million in fiscal 2017.

Board also reallocates $1 billion within its portfolio.

EMs currently account for more than half of the world’s GDP and around two-thirds of GDP growth—that economic share is only expected to rise as EMs are projected to grow faster than developed markets (DMs) in upcoming years.

Low energy prices have contributed to a lack of pickup in inflation, while concerns about Chinese growth have abated, Credit Suisse reports.