Asia loses appetite for Bric funds

Emerging markets1Asian investors withdrew $4.1 billion (€3 billion) from funds investing in Brazil, Russia, India and China (Bric) in the seven months ending in January, according to Cerulli Associates. The outflows came from both equity and bond funds and were particularly heavy in Japan.

"Given the fragile global economic conditions, and inflationary pictures in China and India, Bric assets will likely be under pressure,” said Ken Yap, head of Asia-Pacific research at Cerulli Associates. “That pressure can mean further volatility in Bric funds' assets under management.”

The data is broadly supported by research from EPFR Global, which estimated that Bric funds suffered outflows of $5.4 billion over the course of 2011, from investors in all regions. Interest picked up in the first quarter of 2012, though, with inflows of $300 million into Bric funds, said EPFR.

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