EM Bond Funds Lure Cash

EM bond funds attracted $406m in flows on the week ended February 3, says Morgan Stanley, which cites EPFR Global data. However, flows into funds investing in riskier local currency debt fell to around half the total inflows, compared to over 95% the previous week, adds the bank. Performance was negative, however, with Lipper data showing EM debt funds down 0.23% for the week ended February 4, but unchanged year-to-date. Global income funds dropped 0.11% in the week and are up 0.71% ytd while international income funds dropped 0.47% in the week and 0.03% ytd.