NEW YORK -(Dow Jones)- Record flows into emerging-market bond and equity funds
reversed in the week ending Nov. 4, according to fund tracker EPFR Global.
"With central banks around the world clearly shifting their focus to winding
down the extraordinary measures many of them have taken over the past year and
unemployment rates continuing to climb, investors spent the first few days of
November wondering what will drive economic growth in 2010," EPFR said.
Outflows from emerging-market equity funds hit an 11-week high at $1.32
billion, with all four subgroups seeing money escape for the first time since
June. EPFR cited rising risk aversion as investors questioned "the validity of
current valuations."
Emerging-market bond funds saw outflows of $1 million, after posting inflows
for the seven preceding weeks.
Emerging-market equity funds investing around the world surrendered $539
million, while Europe Middle East Asia-specific funds lost $344 million. Asia
funds, ex-Japan, declined by $251 million and Latin America equity funds
surrendered $185 million.
Within Europe, emerging-Europe dedicated stock funds posted outflows for the
first time in 16 weeks and redemptions from Russia-focused stock funds hit a
year-to-date high at $243 million.
Asia funds were struck by concerns over ongoing export demand into the next
year, given fears that a global recovery wasn't on track. Outflows from China
equity funds totalled $270 million, while $82 million escaped from India funds
in this group's biggest year-to-date outflow.
Only Brazil, Russia, India and China-dedicated funds continued to garner
support, with inflows of $16 million.
-By Riva Froymovich, Dow Jones Newswires; 212-416-2217; riva.froymovich@
dowjones.com
(END) Dow Jones Newswires
11-06-091056ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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