EM Fond Funds Draw Cash, Lose Money

EM bond funds have enjoyed their biggest cash inflow in 8 weeks, bagging $574m in the 7 days to January, according to EPFR Global. It adds that funds focused on local currency debt saw the biggest gains, as the spread between US Treasuries and JPMorgan’s benchmark EMBI+ index remained south of 300bp. Performance, however, was negative, with EM debt funds shedding 0.77%, international income funds dropping 1.12% and global income funds down 0.39%, according to Lipper. Year-to-date, it adds, EM debt funds have gained 0.89%, international income funds are up 0.82%, and global income funds gained 1.14%.