China fund flows turn negative; EM equity funds ease but still solid; investors still pull away from developed market fundsEmerging markets equity funds lost some momentum during the third week of 4Q07 but still absorbed a net $3.3 billion as investors stuck to their strategy of rotating out of developed market asset classes into cash, emerging markets and precious metals. For the week ending October 17 Commodities Sector, Money Market and emerging markets equity and bond funds posted net inflows of $6.7 billion while US, Japan and Europe Equity Funds saw net outflows of $6.1 billion. Among the geographically diversified fund groups Global Emerging Markets (GEM) Equity Funds posted the biggest inflows of any major fund group and Global Equity Funds added to their record-setting year-to-date inflows. But Global Bond Funds had their worst week of the year as they extended their record-setting streak of outflows.
