LatAm Equity Trades up Despite Outflows

Despite seeing net outflows, LatAm equity funds were the biggest gainers of the week ending April 17, soaring 3.23% according to Lipper, with a year to date net gain of 6.53%. LatAm equity funds saw an outflow of $168m in the week ended April 16, according to EPFR Global. The trend was not isolated to LatAm. Lipper reports EM market funds rose 1.76% while EPFR’s diversified GEM equity funds category reported a net outflow of $100m. “The outflows occurred despite the fourth straight week of positive performance for the GEM, Asia ex-Japan and Latin America Funds,” says EPFR. The service cites weak US data, the impact of appreciating currencies on exporters and the effect that rising food prices are having on national finances, consumer confidence and inflation rates as contributors to a cooling sentiment towards EM equity.