EM Debt Funds Stay Negative

In the week ended November 12, investors pulled $1.31bn out of EM bond funds, a 5.1% loss, says EPFR Global. “Emerging markets bond funds have now posted 14 straight weeks of outflows totaling $13.3bn as their commodities export story unravels and those with shaky public finances scramble to plug growing gaps,” says the fund tracker. High yield bond funds meanwhile took in a net $186m. EM debt funds are still losing money, posting a 2.57% drop in the week ended November 13, according to Lipper. The fund class is the worst performer of all world income funds, which on average dropped 0.79% for the week, according to Lipper. Global income funds registered a 0.24% drop and international income funds grew slightly by 0.33%. Year to date, EM debt funds have slid 23.17%, the worst of all world income funds.