Global fund flows to emerging market equity and bond funds slowed significantly during the fourth week of October,ahead of America’s mid-term elections and Fed meeting.
According to the data compiled by the international fund-tracking firm,EPFR,emerging market equity and bond funds took in USD 2.68 billion and USD 710 million respectively for the week ending October 27,which are about half the previous week’s figures.
It said that flows into commodity sector funds were less than a quarter as “speculation mounted that the second round of easing might proceed at a slower than hoped for pace.”
Another reason behind the slow flows into emerging market funds was that a whopping USD 20.2 billion flowed into Money Market Funds,which is a 14-week high for this fund group and the third highest weekly tally year-to-date.
Besides,the US equity funds attracted fresh money and healthcare/biotechnology sector funds recorded their highest weekly inflow since early September.
Overall,EPFR Global-tracked equity funds took in another USD 6.44 billion for the week. Bond funds absorbed USD 4.74 billion,taking the year-to-date total inflows to over USD 360 billion.
Dedicated BRIC equity funds absorbed a modest USD 30 million for the week,while frontier market equity funds took in USD 76 million.
Global Equity Funds extended their current inflow streak to three straight weeks while the other major diversified developed markets fund group,Pacific Equity Funds,posted outflows for only the second time in the past eight weeks.
Emerging Markets Bond Funds,meanwhile,saw inflows slow and spread themselves evenly between the various currency styles. YTD flows into this fund group now stand at $46.4 billion versus $9.48 billion for all of 2009,EPFR added.