Funds Still Entering EM Debt

The latest mutual fund investor data for the week ended March 12 shows $103m (0.15% AUM) in new money allocated to EM debt funds, according to ING, which cites EPFR and JPMorgan data. “This continues to reflect greater purchases of local currency and blended fund shares, likely reflecting investors’ desire to hedge their US dollar exposure,” says ING. Hard currency funds saw redemptions of $380m (0.98% AUM) this week, from $64m of outflows the week before, it adds. Local funds meanwhile saw inflows of $339m (1.86% AUM) and blended funds recorded $144m (1.09% AUM) of new money. In the US, crossover HY funds saw outflows of $499m (0.29% AUM) down from $1.2bn the prior week, says ING.