EM fund flows: the exodus continues | beyondbrics

EM fund flows: the exodus continues | beyondbrics:

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The exodus from emerging markets continued apace with bond and equity funds tracked by EPFR suffering net outflows of $4.4bn in the week to Wednesday.

While the outflows were less than the $5.8bn recorded the week before, it’s hard to put a positive spin on what is essentially another large outflow.

Equity funds that invest in emerging markets were the big losers of the week, with investors pulling out $4.4bn while EM dedicated bond funds – now suffering its 15 consecutive week of losses – recorded $1.61bn in net outflows.

“Amid high uncertainty about Fed policy, we will likely have to wait at least few more weeks before inflows come back to EM,” said Jane Brauer, quantitative FI strategist at Bank of America Merill Lynch."

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