US-based LatAm equity funds shed cash for another week

US-based LatAm equity funds shed cash for another week

Asset Management Bonds Debt Capital Markets Equity Fixed Income Funds Regions

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

In the week ended October 28 there was a $9.6 million net outflow of cash from the 27 US-based funds monitored by Lipper, the mutual fund tracking service of data provider Refinitiv. The level of AUM fell by $548 million, or 6.5%, to $7.9 billion when factoring in the drop in market value of share prices. 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 fell 6%. 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 37%, but up 33% 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 outflow of $276 million from the 711 funds tracked by Lipper. The AUM fell $11 billion, or around 2.5%, to $435.3 billion.

Emerging market bond funds and ETFs pulled in fresh cash for a fourth consecutive week, with a net inflow of $431 million from the 275 funds tracked by the service. The AUM increased, but only marginally, up just $12 million to $62.86 billion as the market prices for bonds were down during the reporting week, thereby cutting into the gains from fresh capital inflows.