US-based LatAm equity funds have small net inflow in latest week

US-based LatAm equity funds have small net inflow in latest week

Fixed Income Equity Funds Latin America Capital Markets Asset Management

Investors in US-based Latin American focused equity mutual and exchange traded funds took in a modest $10 million in net new money for the week ended March 3, however a drop in market prices slashed assets under management, new data shows.

Fresh capital moved into the 27 US-based funds monitored by Lipper, the mutual fund tracking service of data provider Refinitiv, for a second week in a row. The amount of assets under management (AUM) fell by $695 million, or 6.33%, to $10.3 billion in the latest week. At their peak in January 2011, these Latin American equity-focused funds held nearly $23.5 billion.

During the latest weekly reporting period, the benchmark MSCI Latin America stock index fell 5.72%. The index has recovered 60.44% from the March 23, 2020 COVID-19 trough, which was its weakest point in more than 15 years. The index still sits 25.64% below the pre-COVID peak in early January 2020.

In the context of overall US mutual funds invested in the global emerging market equity space, the 725 funds tracked saw inflows of $2.7 billion, extending a streak of fresh money intake to 17 weeks. That is the longest stretch of inflows since early 2019, the data shows. However, the AUM fell by $3.7 billion, or 0.65% to $559 billion from the record high level of $583.5 billion in late February.

Emerging market debt funds had a net outflow of $213 million. AUM of the 271 funds tracked was down $849 million, or 1.25% to $67.3 billion.