Outflows Erode LatAm Equity Funds

LatAm equity funds have resumed the outflow trend. In the week ended November 19, the funds saw outflows of $177m, reversing from the small inflow of $1m seen during the week ended November 12, according to EPFR Global. EPFR global markets analyst Cameron Brandt tells LatinFinance that LatAm equity funds have gone from $41.7bn in early September to $16.3bn on November 19. He explains that the inflows in the week ended November 12 were due to a “flash of euphoria tied to the Chinese stimulus policy” which has since vanished. GEM funds, meanwhile, lost a whopping $835m in the week ended November 19, a lot worse than the previous week, when outflows added up to $196m. Brandt says GEM funds have gone from $704.5bn in the beginning of September to $409.0bn on November 19.