Regional emerging market funds suffer outflows

Emerging markets sign1Equity funds with regional emerging market mandates all suffered outflows in the first half of the year as developed market funds attracted new money.

August data from Bank of America Merrill Lynch shows net outflows from emerging market funds of almost $1.3 billion (€900 million) year-to-date. Funds investing in Latin America were hit hardest with net outflows of $4.2 billion.

Funds investing in the Middle East and Africa suffered outflows of $3 billion, and those investing in Asia $2.6 billion.

Global emerging market funds, however, took in $8.7 billion.

Meanwhile, developed market funds took in $177 billion. Equity funds investing in the US took in $102.2 billion, those investing in Japan $34.3 billion and those investing in Europe $4.2 billion.

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