Tuesday 22 January 2013

WEAFER COMMENT: Fund Flows Monitor – EM surge continues, Russia lags | EmergingMarkets.me

Investors added another $5.8 bln to EM retail funds in the week ended Wednesday to bring the total invested YTD to $16.6 bln. Russia funds reported a net outflow of $64 mln for the past week, which brings the YTD loss to $93 mln. However, when Russia’s share of the big money inflows to GEM funds is taken into account, the total available for last week was $204 mln and $757 mln YTD.

> Investors bullish on EM equities. EPFR Global’s weekly report showed investors remaining very bullish on the EM asset class’ prospects for gains in 2013. Last week’s net addition of $5.8 bln (0.75% of AUM) was less than the previous week’s record inflow of $7.4 bln, but brings the YTD total to $16.6 bln (2.2% of AUM) and adds to the $50.4 bln received through 2012.
Most of this has come in since the start of September, when the US Federal Reserve announced QE3 and China’s economic trend turned more positive. There is, however, still a reluctance to pick many country-specific bets, whereas $11.6 bln, or 70% of the total YTD, has been allocated to the relative safety of GEM Balanced funds.
WEAFER COMMENT: Fund Flows Monitor – EM surge continues, Russia lags | EmergingMarkets.me

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