US-based LatAm equity funds post inflows for fourth week

US-based LatAm equity funds post inflows for fourth week

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

In the week that ended December 2, there was a net inflow of $116 million in fresh capital for the 27 US-based funds monitored by Lipper, the mutual fund tracking services of data provider Refinitiv. The amount of assets under management (AUM) held by these funds rose 4.6%, or $464 million, to $10.5 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 3.55%. The index has steadily climbed from its recent bottom on March 23, its weakest point in more than 15 years. In the year-to-date period, the index is still down around 21%, but up 67.3% 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 fourth consecutive week of more than $1 billion in fresh capital committed to the sector, and marked the longest inflow streak since January 2020. According to Lipper, there was a net inflow of $1.1 billion into the 718 funds tracked by the service. AUM increased 1.5% ,or $7.32 billion, to $490 billion.

Emerging market bond funds and ETFs pulled in a net $34.9 million of new capital. The AUM of the 276 funds tracked in the sector increased by 0.6%, or $381 million, to $65.7 billion.