Bloomberg News

Emerging Equity Funds Post Outflow on Europe Concerns, EPFR Says

May 25, 2012

Emerging-market stock funds posted their third consecutive week of outflows as Europe’s debt crisis and a slowing Chinese economy heightened uncertainty about equities, according to EPFR Global.

Developing-nation equity funds recorded a net total of $1.54 billion in redemptions for the week ended May 23, according to a report e-mailed today by the Cambridge, Massachusetts-based data provider. Net investment into developing-nation equity funds has totaled $19.25 billion in 2012, compared with outflows of $12.46 billion for the same period last year.

So-called Global Emerging-Market funds, or GEM funds, recorded net outflows for the week of $7 million as Asian funds excluding Japan recorded the largest redemptions among emerging market regional funds, posting a net outflow of $768 million, Cameron Brandt, EPFR director of research, said by e-mail today.

Redemptions from Brazil-dedicated funds totaled $245 million pushing outflows from Latin American equity funds to $527 million, the highest level of outflows since the week ended Aug. 10. Russia equity funds registered outflows of $92 million.

The average emerging-market equity portfolio posted a 2.54 percent loss for the week, cutting the 2012 advance to 0.46 percent, Brandt said. Emerging-market bond funds registered outflows of $478 million.

To contact the reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

To contact the editor responsible for this story: Tal Barak Harif at Tbarak@bloomberg.net


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