Growing foreign fund influence a risk for emerging markets: BIS | Reuters:
"The global fund management industry is a potential source of risk for emerging markets because of its vast size and herd-like investor behaviour that can exacerbate asset price fluctuations, a BIS report said on Sunday.
In its quarterly review, the Bank for International Settlements said the selloff that rocked emerging economies last year was a reminder of how "the activity of large asset managers can significantly affect small and illiquid asset markets".
The presence and influence of asset managers in emerging market economies (EME) has grown significantly in recent years, BIS said, citing data showing emerging bond funds alone had quadrupled assets under management (AUM) between 2007-2017."
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