Institutional investors like pension funds and insurance companies can bring benefits to a country, even if it doesn't have strong securities markets. Private pension funds and insurance companies can grow steadily over time, giving governments a chance to develop securities markets. However, mutual funds need well-regulated securities markets to succeed. The key is for governments to commit to overall reform, including in areas like banking and capital markets. Institutional investors can help improve financial systems by promoting innovation, transparency, and good governance.