Resurgent Emerging Markets See Biggest Inflows

A shift by investors' back into emerging market assets gathered pace over the last week, with China and Russia seeing some of the biggest demand as EM inflows reached their highest rate in over a year.  Data from Boston-based fund tracker EPFR, which monitors funds with $23 trillion in assets, showed combined inflows to EM debt and equity funds climbed to $4.7 billion in the week to April 9.  Banks and investors have started buying back into the emerging market story in recent weeks, noting that sector valuations now are cheap enough to compensate for economic weakness and political risks.

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-Igor P. Purlantov

Cash Trickles Back to Emerging Markets

Investors are starting to move back in to emerging stocks and bonds after a long hiatus, data from fund tracker EPFR shows, but the economic slowdown gripping the developing world is likely to constrain market rallies. Emerging stock and bond funds saw their first weekly inflows after more than $50 billion fled in the first three months of 2014, with equities snapping a 22-week losing streak, Boston-based EPFR Global said. The company, which tracks funds with $23 trillion in assets, released details of first quarter flows late on Thursday, showing that all emerging equity fund categories had shed $41 billion, following $26.7 billion losses in 2013.

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-Igor P Purlantov