EM Debt Funds Continue to Draw Cash

The most recent mutual fund investor data for the week ended 23 April revealed a net flow of $264m (0.37% AUM) into EM debt funds, says ING, which cites EPFR Global and JPMorgan data. This was similar to the previous week and boosted by continued interest in local currency. “Deeper detail shows the net outflows of $11m from hard currency funds were more than offset by the $212m (1.09% AUM) purchases of local currency funds and $63m (0.45% AUM) inflows for blended funds,” says ING. Dedicated HY funds meanwhile took in $401m (0.48% AUM), almost three times the previous week, extending a positive run. However, crossover HY vehicles, which also invest in EM, experienced redemptions of $403m (0.24% AUM) versus $357m last week, says ING. EM debt funds lost 0.32% in the week ending April 24, according to Lipper. International income funds sank 1.33%, the biggest drop of the week, while global income funds dropped 0.63%. High yield funds were the biggest gainers with 1.08%, Lipper reports.