Emerging Stock Funds Post Biggest Outflow in 5 Months, EPFR Says

Emerging-market stock funds posted their biggest weekly redemption in five months as Greece’s political stalemate and concern China’s economy may slow more than forecast weighed on investors, according to EPFR Global.

Developing-nation equity funds posted net outflows for the week ended May 16 of $2.24 billion, according to a report e- mailed today by the Cambridge, Massachusetts-based data provider. For the week ended Dec. 21, emerging-market stock funds recorded an outflow of $4.32 billion, Cameron Brandt, EPFR director of research, said by e-mail today.

Net investment into developing-nation equity funds totaled $20.46 billion in 2012 compared with an outflow of $10.78 billion for the same period of 2011.

So-called Global Emerging-Market funds, or GEM funds, recorded a net outflow for the week of $1.39 billion, the data showed, while China-dedicated funds posted a net outflow of $135 million, Brandt said.

Russian equity funds showed a redemption of $52 million for the week, pushing their total performance into the negative for the first time since early February, EPFR said. Latin America- dedicated funds posted an outflow of $273 million to lift total redemptions for 2012 to $1.52 billion.

The average emerging-market equity portfolio posted a 4.28 percent loss for the week, cutting the 2012 advance to 3.08 percent, Brandt said. As of early March, emerging-market equity portfolios had gained 16 percent in 2012.

Emerging-market bond funds registered inflows of $633.8 million for the week after attracting a net $1.05 billion in the previous week, Brandt said.

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

To contact the editor responsible for this story: Tal Barak Harif at Tbarak@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.