US-based LatAm equity funds see cash pulled for first time in month

US-based LatAm equity funds see cash pulled for first time in month

Asset Management Bonds Debt Capital Markets Corporate & Sovereign Strategy Equity Funds Latin America

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Investors in US-based Latin American-focused equity mutual and exchange traded funds cut their holdings for the first time in a month, pulling assets under management (AUM) down sharply as infection rates form the COVID-19 pandemic increase sharply in the region, new data showed on Thursday.

In the week ended June 17, a net outflow of $118 million moved out of the 25 US-based funds monitored by mutual fund tracking service Lipper, a division of Refinitiv. This marked the first week in four that saw a net outflow of cash from the sector. The AUM fell to $8.5 billion, down $575 million or 6.33% for the week. At its peak in January 2011, Latin American equity-focused US mutual funds held nearly $23.5 billion in AUM.

During the reporting period, the benchmark MSCI Latin America stock index lost 4.81%. In the year-to-date period, the index is still down roughly 34% even after rebounding off its March 23rd lows. 

In the context of overall US mutual funds invested in the the global emerging market equity space, the streak of outflows extended to 17 weeks. The outflows in the latest week were $570 million. The AUM for the 747 funds tracked fell by $7.8 billion, or 1.94% to $396.7 billion.

Emerging market bond funds and ETFs had a net outflow of $459.5 million. The sector's 272 tracked funds' AUM fell by $744 million, or 1.25% to $58.6 billion.