Funds flowed into emerging markets in September quarter, but that’s changing

Emerging market equity funds saw a lot of money coming into them in the last quarter, according to data from EPFR Global, a fund tracker. The accompanying chart provides a picture of flows into equity, commodity and bond funds. 

However, trends changed during the fag end of the quarter, with EPFR saying fund flows are in risk-off mode. “Emerging markets equity funds posted back-to-back weeks of outflows in late September for the first time since March,” it said. 

“Based on combined monthly and daily data through the end of September, EPFR Global-tracked equity funds recorded their smallest quarterly inflow since 2Q13 (second quarter of 2013) as retail investors pulled over $75 billion out of this fund group.” 

Inflows into Indian equities, too, dwindled in September. With the US economy doing better than expected, funds have started flowing into US equities in the last few weeks. EPFR points out that the average US weighting among all global equity funds recently hit a 15-month high.

PRASHANT SHARMA

PGDM-III sem

SOURCE- MINT

Emerging market equity funds saw a lot of money coming into them in the last quarter, according to data from EPFR Global, a fund tracker. The accompanying chart provides a picture of flows into equity, commodity and bond funds. However, trends changed during the fag end of the quarter, with EPFR saying fund flows are in risk-off mode. “Emerging markets equity funds posted back-to-back weeks of outflows in late September for the first time since March,” it said. “Based on combined monthly and daily data through the end of September, EPFR Global-tracked equity funds recorded their smallest quarterly inflow since 2Q13 (second quarter of 2013) as retail investors pulled over $75 billion out of this fund group.” Inflows into Indian equities, too, dwindled in September. With the US economy doing better than expected, funds have started flowing into US equities in the last few weeks. EPFR points out that the average US weighting among all global equity funds recently hit a 15-month high.

Emerging market equity funds saw a lot of money coming into them in the last quarter, according to data from EPFR Global, a fund tracker. The accompanying chart provides a picture of flows into equity, commodity and bond funds. However, trends changed during the fag end of the quarter, with EPFR saying fund flows are in risk-off mode. “Emerging markets equity funds posted back-to-back weeks of outflows in late September for the first time since March,” it said. “Based on combined monthly and daily data through the end of September, EPFR Global-tracked equity funds recorded their smallest quarterly inflow since 2Q13 (second quarter of 2013) as retail investors pulled over $75 billion out of this fund group.” Inflows into Indian equities, too, dwindled in September. With the US economy doing better than expected, funds have started flowing into US equities in the last few weeks. EPFR points out that the average US weighting among all global equity funds recently hit a 15-month high.

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