Money Still Flowing to LatAm Equity

Investors continue to commit money to LatAm equity funds, according to EPFR Global. The buyside class posted a collective portfolio gain last week of 4.32%, taking the total for the past seven weeks and year-to-date up to 25.51% and 58.4% respectively. However, this may be the rise preceding a fall. “Recent performance and flow numbers look like they are outstripping fundamentals,” says EPFR global analyst Cameron Brandt. “During the last big run, between October 2006 and February 2007, it took 20 weeks for the funds we track to gain around 23%. That run ended with $9.5bn flowing out over two weeks and 7% being shaved off year-to-date performance.” Brazil equity funds had their best week in percentage terms since Q2 2002, with the net $976m they took in more than offsetting modest outflows from LatAm regional equity funds, EPFR data shows.