US-based LatAm equity funds add cash for second week

US-based LatAm equity funds add cash for second week

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Investors in US-based Latin American-focused equity mutual and exchange traded funds added to their holdings for a second consecutive week, with assets under management (AUM) rising back above the $8 billion mark, new data shows.

In the week ended October 14 there was a $84 million net inflow of cash from 27 US-based funds monitored by Lipper, the mutual fund tracking service of data provider Refinitiv. The level of AUM rose by $425 million, or 5.4%, to $8.3 billion when factoring in the rise in value of the individual equities. At its peak in January 2011, these funds held nearly $23.5 billion in AUM.

During the reporting period, the benchmark MSCI Latin America stock index rose 4.03%. The index has steadily climbed from its recent bottom on March 23, its weakest point in just over 15 years. In the year-to-date period the index is still down around 34.59%, but up 38.08% from the March 23 low.

In the context of overall US mutual funds invested in the global emerging market equity space, the latest week saw a net inflow of $146 million from the 712 funds tracked by Lipper, breaking a four week streak of outflows. The AUM rose $8.6 billion, or around 2%, to $445.4 billion.

Emerging market bond funds and ETFs pulled in fresh cash for a second week in a row, with a net inflow of $605 million from the 275 funds tracked by the service. The AUM increased by just under $1.2 billion, or 1.9%, to $62.8 billion.