US-based LatAm equity funds gain ground for fifth week

US-based LatAm equity funds gain ground for fifth week

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Investors in US-based Latin American-focused equity mutual and exchange traded funds added to their holdings for a fifth consecutive week, extending their longest inflow streak since November 2019.

In the week ended December 9, there was a net inflow of $48.7 million in fresh capital for the 27 US-based funds monitored by Lipper, the mutual fund tracking service of data provider Refinitiv. The amount of assets under management (AUM) held by these funds rose 2.5%, or $267 million, to $10.8 billion. At their peak in January 2011, these Latin American equity-focused funds held nearly $23.5 billion.

During the reporting period, the benchmark MSCI Latin America stock index rose 1.96%. The index has steadily climbed from its March 23 bottom, its weakest point in more than 15 years. In the year-to-date period, the index is still down 19.2%, but up 70.6% from the March 23 low.

In the context of overall US mutual funds invested in the global emerging market equity space, they experienced a net increase of $2.3 billion, marking a fifth consecutive week of inflows into the 716 funds tracked by Lipper in this sector. AUM rose 1.6%, or nearly $8 billion to $498 billion.