Emerging markets absorb $300bn fund inflow
Emerging market equity is still proving popular with global investors, with over $300bn of funds pouring into strategies over the past year.
In April alone $20bn of net capital flowed into emerging markets funds, nearly 90% of the month's equity fund inflow outside of the US, according to Strategic Insight’s Simfund Global databases.
Asian and Europeans are the biggest investors in emerging markets. Over 80% of April’s $20bn emerging market fund inflow was contributed by investors across Asia and Europe through local and cross-border international products.
The emerging markets goldrush contrasts sharply with outflows from developed markets. The past year has seen $140bn of net redemptions pulled out of funds investing in Europe.
“Fund flows to emerging market equities are still remarkable and continue to impact global liquidity, stock prices, market volatility, and investor decisions. It has thus become a central issues for financial markets and the wealth management industry”, said Jag Alexeyev, senior managing director and head of global research at Strategic Insight.
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