Despite the small recovery in emerging markets in the last
week, flows are trading hard, especially the whimsical ETF
(aka the marginal buyer) have averaged $-1.1 billion on average
last 4 weeks.
Interesting that the crowded trades continue to stay crowded…
), Indonesia (
) and even South Africa (
) which is a surprise and a little scary considering how hard
they have traded Gold miners and the retail sector.
Outflows for all regional funds:
Total GEM funds saw strong outflows of just over $2.0 billion
last week, compared to outflows of $1.0 billion in the prior
week. All regions recorded net outflows last week.
On a four-week moving average basis, we have seen outflows of
$0.3 billion each from Dedicated GEM, EMEA and Asia ex Japan; and
inflows of c.$20 million into Latin America.
Non-ETF funds are in net redemption after six months of
ETF funds saw outflows of approximately $1.4 billion last week,
compared to outflows of $0.7 billion for non-ETF funds. On a
4-week moving average (WMA) basis, ETF funds have seen outflows
of $1.1 billion versus inflows of $0.3 billion for non-ETF funds.
Year-to-date non-ETFs represent 63% of the total fund
Country positioning scorecard:
Investors continue to reduce their exposure across the board
except in Philippines and Indonesia. Towards the bottom of the
table, where positioning is the least crowded, Russia moved down
below India. The most crowded countries are: Philippines,
Colombia, Thailand, South Africa and Korea whereas the least
crowded are: CE3, Morocco, Russia (
) and India (
Net inflows year-to-date:
Total GEM funds have benefited from $24.6 billion of inflows this
year compared to $51.3 billion of inflows in 2012. On a
cumulative basis, $214 billion has flowed into GEM funds since