Emerging market funds pull in $2.4 bln in latest week-EPFR

KUALA LUMPUR, Dec 1 (BestGrowthStock) – Emerging markets once
again dominated fund flows, attracting $2.4 billion for the
week ending Nov. 24, although the emerging market bond sector
saw its 25-week inflow streak come to an end, fund tracker
EPFR Global said.

Despite a correction in broader global financial markets
attributed to an investor flight from riskier assets, all of
the four major global emerging markets equity funds tracked by
EPFR recorded inflows for the week.

That brought year-to-date flows to these funds to $84.3
billion, topping last year’s record of $83.3 billion.

“The exchange of gunfire between North and South Korea
occurred towards the end of this reporting period (on Nov 23),
so there wasn’t much impact on this week’s flows into Asia
funds,” noted EPFR global senior analyst Cameron Brandt.

Bond funds, however, posted collective outflows of $735
million, largely due to redemptions at U.S. bond funds, while
money market funds took in over $13 billion for the week amid
growing concerns that Europe’s debt crisis was engulfing
Ireland and other weaker countries in the euro zone group.

Ireland formally requested aid from the EU and IMF on Nov
21 and an 85 billion euro rescue package was approved on Nov
29.

EMERGING MARKET EQUITY FUNDS

EPFR noted that investors showed a preference for regional
rather than country-specific exposure during the week, with
the exception of China.

EMEA equity funds extended their current inflow streak to
11 consecutive weeks and Africa regional equity funds recorded
inflows for the 61st time in the past 64 weeks, while emerging
Europe equity funds had their best week since early 4Q09.

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

Global equity funds absorbed a 34-week high of about $1
billion despite growing volatility, but flows into developed
market equity funds were generally subdued with holidays
around the corner.

Japan equity funds posted outflows for the 21st time in 22
weeks despite strong gains on the local stock exchange, while
U.S. equity funds posted inflows of just under $600 million
with flows into small and mid-cap funds.

SECTOR FUNDS

Energy sector and commodity funds continued to attract
investors with commodity sector funds seeing year-to-date
inflows climb over the $23 billion mark.

Financial sector funds, however, saw big redemptions as
worries about Europe’s debt crisis and the strength of major
European banks resurfaced.

BOND FUNDS

Global bond funds tracked by EPFR posted back-to-back
weeks of outflows for the first time since March 2009 with
investors pulling $1.8 billion out of U.S municipal bond funds
and piling into U.S. short-term and floating-rate bond funds.
(Editing by Kim Coghill)

(Reporting by Royce Cheah)

Emerging market funds pull in $2.4 bln in latest week-EPFR