US-based LatAm equity funds take in fresh cash

US-based LatAm equity funds take in fresh cash

Asset Management Bonds Debt Funds Fixed Income Equity Latin America

Investors in US-based Latin American-focused equity mutual and exchange traded funds put fresh capital to work in the sector during the week ended July 29, resulting in the break of a three week streak of outflows and a modest increase in assets under management (AUM), new data shows.

There was a net $38.6 million inflow of cash from the 27 US-based funds monitored by Lipper, the mutual fund tracking service of data provider Refinitiv. The level of AUM rose by just $85.2 million, or 0.9%, to $9.5 billion. 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 0.80%. The index has steadily climbed from its recent bottom on March 23, its weakest point in just over 15 years. In the year-to-date period the index is still down around 28%, but up 32% 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 net outflow of $405 million from the 727 funds tracked by Lipper. However, the AUM managed just a small increase of 0.09% to $431 billion.

Emerging market bond funds and ETFs had a net inflow of $106 million from the 275 funds tracked. AUM was up just 0.5% to $60.5 billion.