Emerging market equity funds gain €19 billion in Q1

Arrow up 2Emerging market equity funds posted their first net outflows of the year in the final week of the first quarter, but still finished with net inflows of more than $25 billion (€19 billion) for the three months, said data provider EPFR Global. It is the best opening quarter since these funds attracted more than $30 billion at the beginning of 2006.

In the corresponding quarter of 2011, $24 billion flowed out of emerging market equity funds. Over the course of 2011, emerging market equity funds suffered outflows of $48 billion, said the data firm.

EPFR said the outflow in the final week of March was caused by redemptions from Latin American equity funds and Asian funds excluding Japan. These outflows offset commitments to Europe, Middle East and Africa funds, and diversified global equity funds.

First-quarter inflows were particularly impressive for China equity funds, which gained $1.6 billion in inflows during the three months, while Russia funds gained $1.2 billion. But Korea funds suffered outflows of $780 million and emerging Europe funds had outflows of $649 million.

©2012 funds europe