According to data compiled by international fund tracking firm EPFR, equity funds absorbed $265 million during the week ended 11th May. However, it was sharply down on the $1.2 billion it took in the previous week and the $11.1 billion received in the month of April
New Delhi: Emerging market equity funds struggled to attract fresh money last week and absorbed a mere net $265 million on account of outflows in commodity fund, reports PTI quoting an EPFR report.
The latest infusion into emerging market equity funds marks the seventh straight week of net inflows.
According to data compiled by international fund tracking firm EPFR, equity funds absorbed $265 million during the week ended 11th May. However, it was sharply down on the $1.2 billion it took in the previous week and the $11.1 billion received in the month of April.
“With investors questioning the real demand for commodities in early May, emerging market equity funds struggled to attract fresh money during the week ending 11th May, but took in a net $265.3 million and reducing year-to-date outflows to $5.7 billion," the report noted.
However, Asia excluding Japan, has snapped its sixth straight week of inflows as China has been struggling with perceptions that policymakers have still not brought inflation to heel.
Moreover, outflows from emerging market equity funds stemmed in part from a rough week for Russia, whose investment case was hit by the sharp drop in commodity prices and the central bank’s latest rate hike.
Latin America equity funds posted inflows for only the fifth time in the 19 weeks.
In terms of sectors, commodity sector funds experienced record setting outflows for the second consecutive week amounting to $2.3 billion.
Gold and precious metals funds bore the brunt of the selling due to a “combination of profit taking, higher margin requirements and questions about the strength of global growth in the second half of 2011.”
In contrast, real estate and consumer goods funds recorded solid inflows for the week while technology and utilities sector funds posted modest outflows.
A group of Canadian banks and pension funds are hoping their C$3.6 billion ($3.7 billion) offer for TMX Group will keep the nation's largest stock market from falling into foreign hands