Emerging markets equity funds absorb over $5 billion for second week running but US, Money Market and Sector fund flow data suggests an increase in risk aversion; Japan and Europe equity funds remain under pressure despite good performance; outflows from Global Bond Funds continue.
The momentum that EPFR Global-tracked emerging markets funds carried into the fourth quarter was reflected in the $5.21 billion they absorbed during the first week of October. Over the past six weeks these funds have now taken in a net $18.9 billion while posting a collective portfolio gain of 19.69%. Asia ex-Japan Equity Funds again took in the most new money, with China the clear winner among country-specific investors.
Flows into BRICs (Brazil, Russia, India and China) Equity Funds hit a 39 week-high in percentage of assets under management (AUM) terms and South Africa Country Funds had their best week since EPFR Global started tracking them in 1Q02.
