Last week, Emerging Market Equity Fund Flows were down for the
4th straight week with the largest outflows seen since the August
) was the big loser as the big winner in total outflow with 21%
of the net flow having 23% of the AUM.
) which has been slowly grinding lower all year was 10% of the
flow with 6% of the AUM.
In Latin America, Brazil (
) remains the biggest loser with 16 straight weeks and carries
the torch for all investors in terms of disappointing
) remains a place where the crowded trade may still be somewhat
offset by the heavy presence of local pension funds who keep a
bid to the flows side.
) showed its second consecutive outflow and along with Mexico, is
the only one that is positive in the second quarter; Chile (
) has now 4 consecutive weeks of outflows.
Emerging market fixed income flows have been worse and this is
the area that is punishing the currencies along with the local
Emerging market debt was lower for the 3rd straight week and
had the largest outflow since September 2011. Japanese yen
denominated funds were 42% of the flow - Can you say carry
This is the place where you have to wonder whether the
breakdown in Japan will be an opportunity to buy or just the
start of more emerging market debt trades. Emerging market
debt has been the best trade of the last 4 years of ALL asset
The allocations from mega-sized accounts (se endowments,
public pensions, and central banks) were chunky and they are
could reverse beyond what we have seen to this point.
From a traders' perspective, however, the negative sentiment I
read in all press on emerging markets makes me itchy to buy or at
least feel like we are getting to a capitulation point.