US-based LatAm funds cut holdings five weeks in a row

US-based LatAm funds cut holdings five weeks in a row

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Investors in US-based Latin American-focused equity mutual and exchange traded funds cut their holdings for a fifth consecutive week, with assets under management (AUM) dropping by a double-digit percentage, new data shows.

In the week ended September 23 there was a $149 million net outflow of cash from 27 US-based funds monitored by Lipper, the mutual fund tracking service of data provider Refinitiv. The level of AUM fell by $901 million, or 10.2%, to $7.92 billion when factoring in the drop in value of the individual equities. 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 fell 8.66%. 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 37.2%, but up  32.6% 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 $597 million from the 713 funds tracked by Lipper. The AUM fell $17.8 billion, or 4%, to just under $422 billion.

Emerging market bond funds and ETFs broke an eleven-week streak of inflows to see investors pull a net $114.8 million from the 274 funds tracked by the service. The AUM dropped by $1.8 billion, or 2.8%, to $61 billion.