KUALA LUMPUR: Emerging markets are on their way to report record inflows in 2010 with equity fund inflows so far reaching $92.5 billion, $10.5 billion above last year's and bond funds attracting $52.5 billion, nearly seven times 2009 total, fund tracker EPFR Global said on Friday, Dec 24.
The totals were up to the week ending Dec. 22.
For the week's performance however, emerging market equity funds saw their 29-week inflow streak snapped due to profit-taking and uncertainty about inflation and fresh capital controls, said Boston-based EPFR, a unit of Informat Plc
Overall, EPFR said that during the final weeks of 2010, investor focus has shifted from bonds to equities. As such, equity funds globally took in a net $4.5 billion for the week ending Dec. 22 while bond funds saw redemptions totalling $2.3 billion.
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EMERGING MARKET EQUITY FUNDS
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EPFR said global emerging market equity funds have attracted two out of every three dollars committed to emerging market funds this year, but that it was the EMEA equity funds that would be carrying the greatest momentum into 2011 as they have seen inflows for 15 straight weeks with half of their year-to-date total coming in the fourth quarter alone.
Latin American Equity funds have stumbled in recent weeks as political uncertainty and worries about Chinese demand cooled investor sentiment toward the region.
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U.S., GLOBAL, EUROPE, PACIFIC AND JAPAN EQUITY FUNDS
U.S. and Japan equity funds saw inflows with three of the other developed market fund groups seeing outflows. The latest inflows to the United States reduced year-to-date redemptions to $34.2 billion, which would be the smallest annual outflow since 2006.
Japan equity funds extended their inflow streak to four consecutive weeks while Europe equity funds turned negative despite continued inflows into Germany equity funds.
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SECTOR FUNDS
Commodity and energy sector funds continued their strong run this year. Financial sector funds however struggle with concerns about higher funding costs in the coming months and the perception that Europe's sovereign debt problems could further damage balance sheets.
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BOND FUNDS
U.S. bond funds and western Europe bond funds saw outflows offsetting the gains in global bond funds and emerging markets bond funds.
In the case of U.S. bond funds, redemptions from municipal bond funds accounted for more than half of the total outflows while in western Europe, concerns about the ability of peripheral euro zone countries to avoid default continued to have an impact. - Reuters
The totals were up to the week ending Dec. 22.
For the week's performance however, emerging market equity funds saw their 29-week inflow streak snapped due to profit-taking and uncertainty about inflation and fresh capital controls, said Boston-based EPFR, a unit of Informat Plc
Overall, EPFR said that during the final weeks of 2010, investor focus has shifted from bonds to equities. As such, equity funds globally took in a net $4.5 billion for the week ending Dec. 22 while bond funds saw redemptions totalling $2.3 billion.
''
EMERGING MARKET EQUITY FUNDS
''
EPFR said global emerging market equity funds have attracted two out of every three dollars committed to emerging market funds this year, but that it was the EMEA equity funds that would be carrying the greatest momentum into 2011 as they have seen inflows for 15 straight weeks with half of their year-to-date total coming in the fourth quarter alone.
Latin American Equity funds have stumbled in recent weeks as political uncertainty and worries about Chinese demand cooled investor sentiment toward the region.
''
U.S., GLOBAL, EUROPE, PACIFIC AND JAPAN EQUITY FUNDS
U.S. and Japan equity funds saw inflows with three of the other developed market fund groups seeing outflows. The latest inflows to the United States reduced year-to-date redemptions to $34.2 billion, which would be the smallest annual outflow since 2006.
Japan equity funds extended their inflow streak to four consecutive weeks while Europe equity funds turned negative despite continued inflows into Germany equity funds.
''
SECTOR FUNDS
Commodity and energy sector funds continued their strong run this year. Financial sector funds however struggle with concerns about higher funding costs in the coming months and the perception that Europe's sovereign debt problems could further damage balance sheets.
''
BOND FUNDS
U.S. bond funds and western Europe bond funds saw outflows offsetting the gains in global bond funds and emerging markets bond funds.
In the case of U.S. bond funds, redemptions from municipal bond funds accounted for more than half of the total outflows while in western Europe, concerns about the ability of peripheral euro zone countries to avoid default continued to have an impact. - Reuters
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