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10 Apr 2015
Disconnect between EM equity flows & EM equity performance – BAML
FXStreet (Barcelona) - The BofA-Merrill Lynch Team, reviews the weekly EM bond and equity fund flow data, and further comments on the performance of equities in emerging markets.
Key Quotes
“Weekly flows: $7.2bn inflows to bond funds trump $0.2bn inflows to equity funds…"
“…even on cumulative basis since 1996, bond fund inflows have outpaced equity fund inflows to the tune of $300bn”
“Income: despite tepid equity inflows overall, equity income funds record another week of healthy inflows ($1.0bn) (inflows in 15 out of past 16 weeks). Also, BofAML private clients continue to increase exposure to dividend ETF's…corroborating investor demand for income.”
“Europe hogs the spotlight: $3.9bn inflows this week, extending inflow streak to 13…"
“…meanwhile EM can't catch a bid: flows have lagged performance; 8 straight weeks of outflows from China equity funds (despite her being the best performing global market past 12 months) and LatAm equity funds only see a tiny $37mn after 9 straight weeks of outflows.”
Key Quotes
“Weekly flows: $7.2bn inflows to bond funds trump $0.2bn inflows to equity funds…"
“…even on cumulative basis since 1996, bond fund inflows have outpaced equity fund inflows to the tune of $300bn”
“Income: despite tepid equity inflows overall, equity income funds record another week of healthy inflows ($1.0bn) (inflows in 15 out of past 16 weeks). Also, BofAML private clients continue to increase exposure to dividend ETF's…corroborating investor demand for income.”
“Europe hogs the spotlight: $3.9bn inflows this week, extending inflow streak to 13…"
“…meanwhile EM can't catch a bid: flows have lagged performance; 8 straight weeks of outflows from China equity funds (despite her being the best performing global market past 12 months) and LatAm equity funds only see a tiny $37mn after 9 straight weeks of outflows.”