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Emerging markets funds flows turn mixed

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This week's swing away from the euro zone sent institutional money fleeing from many developed markets and left several key emerging markets drifting as well. But there were bright spots. Russian funds like RSX ( quote ) bounced back as traders rotated money out of portfolios with a broader mandate to invest throughout Central and Eastern Europe -- in the past, many of these markets have shown that they can be extremely sensitive to the euro, and investors are taking few chances this time around. As a result, while mutual funds and ETFs focusing on Emerging Europe, the Middle East and Africa -- "EMEA" funds -- deflated for the sixth week in a row, Russia-specific funds took in new money. Conditions in developed Europe were worse, with developed euro-denominated funds shedding $741 million during the week while Greece's latest round of debt difficulties played out. Brazilian funds like EWZ ( quote ) saw fresh flows as traders hunted exposure to what has effectively become a significantly undervalued market: Likewise, Colombian funds like GXG ( quote ) continued to prosper, gaining money at the fastest rate in nine months: And in India, battered by frustration and technical headwinds, funds like INP ( quote ) and PIN ( quote ) deflated at the fastest rate since the correction of late March.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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