Equity fund outflows shrink
Emerging market equity funds get some respite as pace of outflows slows
market fund outflows slowed in the week to February 12, with
investors taking $3.08bn from equity funds, half the amount
posted a week earlier, according to Barclays.
year-to-date outflows from EM equity funds have exceeded the
$15.20bn recorded in 2013, the bank said. Barclays said retail
investors had been leading the exit and were recently joined by
retail exodus from EM is large and fast, it may not be simply a
view on 'poor’ EM fundamentals but rather a
savings-consumption choice," the investment bank said in a
Latam equity outflows remained steady at $190mn last week.
outflows reached $1.37bn in the week to Feb. 12, down from
$1.95bn a week earlier.
investors said they were not overly concerned about fund
outflows because they represent retail investors with
short-term positions who have panicked by recent headlines on
volatility and economic turmoil in some EM like Argentina and
still want to play it up, but I think in general investors are
beginning to feel a little more conscious that this is not
Armageddon, that this is not a 1997 or 1998 sell off," said a DCM banker.