EM Equity Funds Rake in $5bn

EM equity funds took in $5.21bn in the week ended October 5, bringing their net intake over the past six weeks to $18.9bn, according to EPFR Global. During the 6-week period, EM equity gained 19.69%, says the fund tracker, which notes that the gain for EM was at the expense of Japan and Europe equity funds, which have lost a combined $26bn so far this year. “Flows into Latin America equity funds slowed but remained positive, with Mexico country funds taking over from their Brazil counterparts as a driver of inflows,” says EPFR. In EM, Brazil has been the biggest gainer, with $2.36bn in inflows so far YTD, much better than the other BRICs equity funds. India and China have lost $1.9bn and $2.8bn respectively. And overall, the outlook is bright for EM inflows. “Despite the hints of higher risk aversion, this year’s story is clearly the accelerating shift by investors out of funds geared to the major developed markets – the US, Japan and the Eurozone – and into those focusing on emerging markets,” says EPFR analyst Cameron Brandt.