KUALA LUMPUR: Standard Chartered Global Research said the week ended Feb 11 was yet another week for emerging market (EM) bond and equity funds.
It said in a report issued on Monday, Feb 14 there was a combined outflow of US$3.5 billion, again driven by significant outflows from EM equity funds. A distinguishable trend has emerged in recent weeks ' a constant flow of cash from EM to developed markets (DM).
'However, a more drastic shift from fixed income to equities is not yet evident. Risk appetite does not seem to be dying out, as DM equities ' and, more importantly, high-yield (HY) bond funds ' are enjoying inflows at the margin,' it said.
Standard Chartered Global Research said global bond funds saw miniscule outflows of US$186 million, compared with inflows of US$2.0 billion the previous week.
The research house said that equity funds saw inflows of USD$1.5 billion, despite outflows from EM equity funds. It said that DM equity funds saw inflows of USD$4.6 billion (down from US$6.2 billion the previous week), while EM equity funds saw significant outflows of US$3.0 billion (after outflows of US$7.1 billion the week before).
'EM bond funds collectively saw outflows increase to US$477 million, from a negligible level of US$26 million the week before. Meanwhile, DM bond funds witnessed small inflows of US$291 million, following inflows of US$2.1 billion in the week ended Feb 2,' it said.
As for the EM bond funds, local-currency bond funds saw outflows of US$67 million (compared with inflows of US$185 million the previous week). This was the first outflow witnessed by local-currency bond funds since the middle of May 2010.
It said in a report issued on Monday, Feb 14 there was a combined outflow of US$3.5 billion, again driven by significant outflows from EM equity funds. A distinguishable trend has emerged in recent weeks ' a constant flow of cash from EM to developed markets (DM).
'However, a more drastic shift from fixed income to equities is not yet evident. Risk appetite does not seem to be dying out, as DM equities ' and, more importantly, high-yield (HY) bond funds ' are enjoying inflows at the margin,' it said.
Standard Chartered Global Research said global bond funds saw miniscule outflows of US$186 million, compared with inflows of US$2.0 billion the previous week.
The research house said that equity funds saw inflows of USD$1.5 billion, despite outflows from EM equity funds. It said that DM equity funds saw inflows of USD$4.6 billion (down from US$6.2 billion the previous week), while EM equity funds saw significant outflows of US$3.0 billion (after outflows of US$7.1 billion the week before).
'EM bond funds collectively saw outflows increase to US$477 million, from a negligible level of US$26 million the week before. Meanwhile, DM bond funds witnessed small inflows of US$291 million, following inflows of US$2.1 billion in the week ended Feb 2,' it said.
As for the EM bond funds, local-currency bond funds saw outflows of US$67 million (compared with inflows of US$185 million the previous week). This was the first outflow witnessed by local-currency bond funds since the middle of May 2010.
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