10 weeks of outflows from Emerging Markets
Moneylife Digital Team 28 January 2015
While Indian markets are getting huge inflows, money is flowing out of other emerging markets
 
 
Dedicated EM (emerging markets) equity funds reported a large outflow of US$3.20bn for the week ending 21 January 2015. This is the 10th consecutive week of outflows for dedicated EM equity funds, cumulatively amounting to US$24.3bn (2.7% of AUM-assets under management). This is according to a Morgan Stanley research note. 
 
The chart below shows the extent of outflows:
 
 
The position specific to the Indian market over more than a decade is shown in the chart below:
 
 
At the country level for equities (aggregate flows from all funds, global + EM dedicated funds, in US$ terms), China reported the largest outflows within EM markets of US$1.9bn this week. Relative to their AUM, China, Columbia and Chile were the major EMs to report outflows this week, while India, Turkey, and Korea reported inflows relative to their AUM. Within developed markets, USA and UK reported the largest outflows relative to their AUM this week, while, Germany, France and Italy reported the largest inflows relative to their AUM.
 
All sectors in EM reported outflows this week, with Financials, Energy and Utilities reporting the largest outflows relative to AUM in this week.
 
The comparative position of emerging markets in different countries is shown in the chart below:
 
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