Emerging-Market Equity Funds Record 10th Week of Inflows, EPFR Global Says

Emerging-market stock funds took in $907 million in the week ended March 7, the 10th week of inflows and the longest run of gains since 2010, according to EPFR Global.

Inflows were lured as an easing in tensions with Iran outweighed the prospect of slower growth in China, according to EPFR. Net investment into developing-nation equity funds has totaled $22.6 billion in 2012, compared with outflows of $19.6 billion for the same period of 2011, according to a report e- mailed today by the Cambridge, Massachusetts-based data provider.

So-called Global Emerging-Market funds, or GEM funds, recorded net inflow for the week of $1.3 billion, the data show. Asian funds excluding Japan recorded a net outflow of $418 million, Cameron Brandt, EPFR director of research, said by e- mail today.

China cuts its economic growth target to 7.5 percent on March 5, from an 8 percent goal in place since 2005.

Russia equity funds posted their sixth consecutive week of net inflows of more than $100 million. The funds brought in $121 million for the week that included the election of Prime Minister Vladimir Putin as president.

The average emerging-market equity portfolio posted a 3.1 percent loss for the week, cutting the 2012 advance to 13.05 percent, Brandt said.

Emerging-market bond funds registered inflows of $1.37 billion, the second-largest weekly total for the year, Brandt said. The largest was $2.14 billion of inflows in the week ended Feb. 8, the data showed.

To contact the reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net

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