Emerging Bond Fund Flows Set Record After Brexit Vote, EPFR Says

  • Investors kept regional exposure preference on Asia: EPFR
  • Inflows into all bond funds hit 74-week high post-Brexit

Emerging Asia bonds were a key beneficiary following the decision last month by U.K. voters to withdraw from the European Union, data from EPFR Global show.

Flows into emerging market debt funds set a new weekly record for the week ended July 6, with an even divide between funds with local currency and U.S. dollar mandates, according to the financial data provider. Investors opted for diversification in credit quality and duration but “maintained their preference for emerging Asia’’ when it came to regional exposure, EPFR said in a release dated July 7.

Overall, inflows into all bond funds hit a 74-week high compared with equity funds, which touched a five-week high. During the week ended July 6, investors also committed the most money to U.S. bond funds since the middle of the first quarter of 2015.

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