Emerging markets equity and bond funds in the money as risk appetite builds (Registration required)

Flows into EPFR Global-tracked emerging market equity funds hit a year-to-date high, Emerging Markets Bond Funds snapped a 10 week losing run and High Yield Bond Funds had their second best week of 2009 as investors regained more of their appetite for risk during the fourth week of March. Money Market Funds posted a third consecutive week of outflows and index funds geared to US equities surrendered $4.5 billion as more money found its way into actively managed equity and fixed income funds.


“The latest data certainly paints a picture of money leaving essentially passive vehicles such as Money Market Funds and being put to work in funds offering more risk and higher rewards,” noted EPFR Global Senior Analyst Cameron Brandt. “Another clue is the lack of movement surrounding the rebalancing of the big US index funds. Last year there was a lot of money chasing the small arbitrage opportunities offered by those quarterly rebalancing, but this year there is clearly some appetite for chasing bigger returns again.”