EM equity and bond funds, Financial and Commodity sector funds and US equity funds benefit from anticipated cut in US interest rates as investors move cash out of Money Market funds.
Money poured into emerging markets equity and bond funds during the final week of October as investors positioned themselves to benefit from the expected cut in US interest rates that the Federal Reserve duly delivered on Halloween Day. Led by the diversified Global Emerging Markets (GEM) Equity Funds, which had their best week in dollar terms since EPFR Global started tracking them, equity and bond funds geared to the emerging markets absorbed a net $5.74 billion. Financial and Commodity Sector Funds also benefited, as did US and Global Equity Funds. But Europe and Japan Equity Funds and Global Bond Funds extended their losing streaks.
