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Mstyslav Chernov
The latest Emerging Portfolio Fund Research (EPFR) data shows that international investors have started to increase their investments in emerging market funds after a one-week break. Based on a Bank of America report that takes EPFR data into account, inflows to emerging markets funds during the week ending 14th April topped $5bn. A week earlier there were symbolic outflows of $73m. In addition, last week's result was the highest since early March, when inflows exceeded $9.6bn; in the following weeks they fell to $1.6-2.4bn.
However, it would be premature to talk about a recovery of interest in emerging markets, since most of the inflows only came from Chinese funds. According to EPFR, the funds accounted for over $4bn, the highest weekly gain since early March. Investors are attracted by the strong growth of the Chinese economy, which grew 18.3% in the first quarter compared with the same period last year.
Excluding the performance of Chinese funds, the remaining emerging markets received around $1bn, the lowest inflow since October last year. Such investments have averaged $3.8bn a week since the start of the year. International investors withdrew $126 mln from Brazilian funds, one and a half times the result of the previous week. India funds lost $162 mln (2.5 times more than a week earlier). Investors are concerned about worsening epidemiological situation in these countries. Brazil and India have the third and second highest number of COVID-19 infections with 13.7 million and 14.8 million cases, respectively.
source: ft.com
However, it would be premature to talk about a recovery of interest in emerging markets, since most of the inflows only came from Chinese funds. According to EPFR, the funds accounted for over $4bn, the highest weekly gain since early March. Investors are attracted by the strong growth of the Chinese economy, which grew 18.3% in the first quarter compared with the same period last year.
Excluding the performance of Chinese funds, the remaining emerging markets received around $1bn, the lowest inflow since October last year. Such investments have averaged $3.8bn a week since the start of the year. International investors withdrew $126 mln from Brazilian funds, one and a half times the result of the previous week. India funds lost $162 mln (2.5 times more than a week earlier). Investors are concerned about worsening epidemiological situation in these countries. Brazil and India have the third and second highest number of COVID-19 infections with 13.7 million and 14.8 million cases, respectively.
source: ft.com
