Emerging market funds on the way to record-setting year-EPFR

KUALA LUMPUR, Dec 24 (BestGrowthStock) – Emerging markets are on
their way to report record inflows in 2010 with equity fund
inflows so far reaching $92.5 billion, $10.5 billion above
last year’s and bond funds attracting $52.5 billion, nearly
seven times 2009 total, fund tracker EPFR Global said on Friday.

The totals were up to the week ending Dec. 22.

For the week’s performance however, emerging market equity
funds saw their 29-week inflow streak snapped due to
profit-taking and uncertainty about inflation and fresh
capital controls, said Boston-based EPFR, a unit of Informat
Plc

Overall, EPFR said that during the final weeks of 2010,
investor focus has shifted from bonds to equities. As such,
equity funds globally took in a net $4.5 billion for the week
ending Dec. 22 while bond funds saw redemptions totalling $2.3
billion.

EMERGING MARKET EQUITY FUNDS

EPFR said global emerging market equity funds have
attracted two out of every three dollars committed to emerging
market funds this year, but that it was the EMEA equity funds
that would be carrying the greatest momentum into 2011 as they
have seen inflows for 15 straight weeks with half of their
year-to-date total coming in the fourth quarter alone.

Latin American Equity funds have stumbled in recent weeks
as political uncertainty and worries about Chinese demand
cooled investor sentiment toward the region.

U.S., GLOBAL, EUROPE, PACIFIC AND JAPAN EQUITY FUNDS

U.S. and Japan equity funds saw inflows with three of the
other developed market fund groups seeing outflows. The latest
inflows to the United States reduced year-to-date redemptions
to $34.2 billion, which would be the smallest annual outflow
since 2006.

Japan equity funds extended their inflow streak to four
consecutive weeks while Europe equity funds turned negative
despite continued inflows into Germany equity funds.

SECTOR FUNDS

Commodity and energy sector funds continued their strong
run this year. Financial sector funds however struggle with
concerns about higher funding costs in the coming months and
the perception that Europe’s sovereign debt problems could
further damage balance sheets.

BOND FUNDS

U.S. bond funds and western Europe bond funds saw outflows
offsetting the gains in global bond funds and emerging markets
bond funds.

In the case of U.S. bond funds, redemptions from municipal
bond funds accounted for more than half of the total outflows
while in western Europe, concerns about the ability of
peripheral euro zone countries to avoid default continued to
have an impact.

(Reporting by Royce Cheah; Editing by Tomasz Janowski)

Emerging market funds on the way to record-setting year-EPFR