US-based LatAm equity funds see inflows for second week

US-based LatAm equity funds see inflows for second week

Equity Funds Regions

Investors in US-based Latin American-focused equity mutual and exchange traded funds added fresh cash to the sector for a second consecutive week, while assets under management (AUM) surged 11.2% on the back of rising stock markets, new data showed on Thursday.

In the week ended June 3, the net inflow of $59.4 million into 25 US-based funds monitored by mutual fund tracking service Lipper, a division of Refinitiv, was compounded by a sharp increase in stock prices. 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 rose 10%, while AUM of the tracked funds rose 11.2% to $8.65 billion. Since the closing low on March 23, the index has surged back 43.5% through Friday June 5th. However, the index is still off 33% from its closing peak on January 2nd. 

In the context of overall US mutual funds invested in the the global emerging market equity space, the streak of outflows extended to 15 weeks. The outflows in the latest week were $477.6 million. However, the AUM for the 750 funds tracked rose $25.7 billion, or 6.9% to $369 billion. 

Emerging market bond funds and ETFs had a net inflow of $412 million in fresh capital. The sector's 273 tracked funds' AUM increased by $1.7 billion, or 3.1% to $57.7 billion.