US-based LatAm equity funds see fresh inflows
November 23, 2020 |
Pace slows but remains strong with best showing in 11 months, Lipper data shows
Investors in US-based Latin American-focused equity mutual and exchange traded funds added to their holdings at their strongest pace in 11 months, with assets under management (AUM) getting an additional boost from rising market prices.
In the week ended November 18 there was a net inflow of $251 million in fresh capital for the 27 US-based funds monitored by Lipper, the mutual fund tracking service of data provider Refinitiv. The level of AUM rose 6%, half the increase of the prior week. The funds overall now hold $9.7 billion in assets, adding $549 million for the week. 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 3.64%. 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 25%, but up 58.35% 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 its best net inflow since January 2020, with $1.6 billion in new money added to 719 funds tracked by Lipper. The AUM rose 2.14%, or nearly $10 billion to $476 billion.
Emerging market bond funds and ETFs pulled in $280 million of new capital. The AUM of the 276 funds tracked in the sector by Lipper increased by $688 million, or 1.1% to $64.8 billion.