By Shuli Ren
In the week ending October 9, capital flowed out of EM equity and bond funds, but retail money’s risk-off attitude is extended to developed markets as well, data provided by Barclays analysts Durukal Gun and Koon Chow shows.
A tiny amount, $0.13 billion, or 0.02% asset under management (AUM), flowed out of EM equity funds. By comparison, developed markets (DM) dedicated equity funds experienced a much larger $6.6 billion outflow. U.S., in particular, saw $10.3 billion, or 0.36% AUM, capital fleeing.
Capital continued to flow out EM bond funds, seeing $0.5 billion, or 0.2% AUM, leaving. DM dedicated bond funds lost $1.3 billion, or 0.05% AUM.
EM equity funds are not uniformly affected, however. GEM and EEMEA funds saw inflows, whereas BRIC and Latin American dedicated funds saw outflows. This has been an ongoing trend.
In EM bond space, hard currency bond funds were least affected.