As emerging markets (EEM, quote) sentiment ranges between awful and not so awful last week’s fund flow data had a bit of everything. By the way happens to be one of the best times to make money in the asset class.
Sentiment towards emerging markets remains impacted by renewed political tensions in Ukraine, Venezuela (GXG, quote)and Thailand (THD, quote), and thus portfolio investment flows continue to go into domestic market equity funds.
One of the things I have highlighted in a few presentations lately and believe worth watching is the unabated interest in the European Union.
Last week roughly $8 billion dollars went into U.S. funds and $5 billion dollars into European funds.
Emerging markets equity fund outflows have continued to ease somewhat during the last week, but through the week of February 19th continue to remain down by $1.6 billion.
The pace of the outflow is better however as Global Emerging Market (GEM) funds saw outflow of $190 million.
ETFs saw $890 million outflow.
Outflows remained broadly balanced from all three major emerging market regions. Within the major Latin America markets we still see little differentiation among them, with outflows from all Latin America country funds.