Bloomberg News

Emerging Stock Funds Post Outflow on Growth Concerns, EPFR Says

July 20, 2012

Emerging-market stock funds posted net outflows of $808 million in the week ended July 18 as concern about U.S. growth offset speculation central banks will act to stimulate their economies, according to EPFR Global.

Net investment into developing-nation equity funds has totaled $13.55 billion in 2012, compared with outflows of $11.9 billion for the same period of 2011, according to a report e- mailed today by the Cambridge, Massachusetts-based data provider.

So-called Global Emerging-Market funds, or GEM funds, recorded net outflows for the week of $201 million, the data show. Latin American equity funds posted redemptions of $241 million as those dedicated to Mexico jumped to their highest level of outflows in 18 weeks, $114 million, Cameron Brandt, EPFR director of research, said by e-mail today.

Asian funds excluding Japan recorded a net outflow of $305 million while funds dedicated to China snapped an 11-week outflow streak, posting an inflow of $14 million, as weaker growth in the second quarter boosted bets for additional stimulus. Russia-dedicated equity funds recorded net outflows of $57 million.

The average emerging-market equity portfolio posted a 0.01 percent loss for the week, paring the 2012 advance to 4.74 percent, Brandt said.

Emerging-market bond funds registered inflows of $935 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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