Emerging Equity Funds Post Outflow on Slowing Growth, EPFR Says

Emerging-market stock funds posted a net outflow for the sixth week in seven as signs of slowing growth in China and Germany combined with Spain’s banking crisis, according to EPFR Global.

Developing-nation equity funds registered an outflow of $216 million for the week ended June 20, according to a report e-mailed today by the Cambridge, Massachusetts-based data provider. Total net investment into developing-nation equity funds has totaled $15.27 billion in 2012, compared with outflows of $12.8 billion for the same period of 2011.

Asian funds excluding Japan recorded their biggest weekly outflow in 2012, posting redemptions of $1.03 billion, Cameron Brandt, EPFR director of research, said by e-mail today.

China equity funds have recorded eight consecutive weeks of outflows while Russia-dedicated funds posted a net outflow for the week of $61 million as oil prices tumbled.

Latin America-dedicated funds recorded a net inflow of $180 million as Brazil sought ways to boost economic growth.

The average emerging-market equity portfolio posted a 2.6 percent gain for the week to extend the 2012 advance to 5.03 percent, Brandt said.

Emerging-market bond funds registered inflows of $552 million.

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