Investors Yank Cash from LatAm Equity

In the week ended September 2, investors pulled $185m out of LatAm equity funds amid a broader exodus from stocks, says EPFR Global. Investors withdrew $713m from diversified global emerging markets equity, while committing $80m and $67m respectively to EMEA and Asia ex-Japan equity funds, it adds. The fund tracker notes that the buyside generally steered the cash pulled out of money market funds into fixed income rather than equity. “With the summer holiday season winding down, investors started looking ahead and trying to match current valuations to future prospects. In many cases they struggled to make the connection between equity markets at 10 to 12 month highs and a global economy that has digested the bulk of the fiscal stimulus packages served up in recent months but continues to shed jobs,” says EPFR. Meanwhile EM bond funds investing in riskier local currency debt attracted the bulk of new fixed income money, at $247m for the week.