Funds Pile Back Into EM Equity

A Bank of America-Merrill Lynch survey of fund managers shows they are jumping back into global EM equity and have an increased appetite for risk. China remains the most popular EM country, with 51% of investors overweight there and 26% of the buyside expecting to see its economy strengthen in the next 12 months. Investors are also overweight Brazil, the survey shows. The most popular GEM sector is consumer discretionary, which BofA-ML says expresses confidence in EM consumers. In the week to April 16, LatAm focused equity funds saw fresh inflows, according to EPFR Global. “Flows into Latin America equity funds were driven by renewed enthusiasm for Brazil’s export story and the resilience of its consumers. Brazil Equity Funds took in another $255m as the value of assets under management climbed to 152% of the beginning of the year total,” says the fund tracker.