US-based LatAm equity funds see small outflow, but rise in assets

US-based LatAm equity funds see small outflow, but rise in assets

Asset Management Bonds Debt Capital Markets Equity Fixed Income Funds Latin America

Investors in US-based Latin American-focused equity mutual and exchange traded funds pulled a modest amount of cash out of the sector, although overall assets under management (AUM) rose by 3.2%, new data showed on Thursday.

In the week ended July 8, there was a net $5 million outflow for the 28 US-based funds monitored by mutual fund tracking service Lipper, a division of Refinitiv. This marked a fall from the prior week's net inflow of cash to the sector. The AUM rose 3.2%, or $$275 million, to $8.9 billion for the week. At its peak in January 2011, these funds held nearly $23.5 billion in AUM.

During the reporting period, the benchmark MSCI Latin America stock index gained 3%. The index is down 32% year-to-date. That is after recovering nearly 43% in value from the recent low on March 23rd, which was the weakest point in just over 15 years.

In the context of overall US mutual funds invested in the global emerging market equity space, the latest week marked a 20th straight of outflows, a record number of consecutive outflows since data started being collected in 1992. For the week, the sector saw a net outflow of $625 million from the 757 funds tracked by Lipper. However, even as the outflow streak extended in the last week, the rise in equity markets helped the AUM increase by 6%, or $23.7 billion to $425 billion.

Emerging market bond funds and ETFs had a net inflow of $288 million from the 275 funds tracked. AUM was higher, up 1.3%, or $740 million to $58.9 billion.