US-based LatAm equity funds see increase in net outflows

US-based LatAm equity funds see increase in net outflows

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Investors in US-based Latin American-focused equity mutual and exchange traded funds cut their holdings for a third consecutive week, however increases in the market value of these funds helped to boost the overall assets under management by 2.65%, new data shows.

In the week ended November 4 there was a $44.3 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 rose by $209 mln, or 2.65%, to $8.1 bln when factoring in the increase in market value of share prices. At its peak in January 2011, these funds held nearly $23.5 bln in AUM.

During the reporting period, the benchmark MSCI Latin America stock index rose 2.85%. 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 35%, but up 36.7% 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 $397.9 mln from the 722 funds tracked by Lipper. The AUM, however, rose by $10.7 bln, or 2.45%, to $445.9 bln.

Emerging market bond funds and ETFs saw a net outflow of cash for the first time in four weeks. Net outflows of $70.7 mln came from 277 funds in the category tracked by the service. The AUM dropped by $486 mln, or 0.77%, to $62.4 bln.