Flows turn positive for emerging market equity funds

Funds dedicated to emerging market equities registered small inflows during the week to Feb 4, after two weeks of redemptions worth $1.6bn, data from EPFR show.

But investors continued to shun EMEA funds, which have had 8 unbroken months of redemptions, according to Merrill Lynch’s Michael Hartnett.

Flows for developed markets were also negative. Western European funds and US funds posted outflows equivalent to 1.40 per cent and 0.15 per cent of assets under management respectively, EPFR said. Japan funds registered outflows equivalent to 1.12 per cent of assets.