EM Equity Funds See Robust Inflows

Despite the rout, geographically diversified global emerging markets (GEM) funds tracked by EPFR Global had their best week ever last week, both in dollar and percentage terms. “In recent years the fourth quarter has been the sweet spot for flows into emerging markets funds,” says EPFR Global md Brad Durham. “That’s the case again this year: fourth quarter inflows into these funds currently account for 57% of the year-to-date total.” A record-setting $3.37bn flowed into GEM Equity, according to the service, which tracked flows through December 14. LatAm equity funds received $489m in the period, fueled by appetite for more liquid markets. BRIC equity funds absorbed $985m, their best week since late Q1 2006. EM bond funds meanwhile saw modest inflows, while investors pulled over $600m out of global bond funds as risk appetite continued to increase, says EPFR. EPFR Global tracks both traditional and alternative funds domiciled globally with $10trn in assets.