Emerging Markets 01 (May 08 - Dec 11)

[kennynah]

Fund Inflow

Investors added the most in six weeks to equity funds tracked worldwide, according to research firm EPFR Global.

The funds took in a net $8.43 billion in the week ending Sept. 8, according to the Cambridge, Massachusetts-based company.

About $1.87 billion was added to emerging-markets equity funds during the week, the data showed.


http://www.bloomberg.com/news/2010-09-1 ... rally.html

how do they even know the above for a fact ??

[winston]

Emerging Equities, High-Yield Bonds Lure Cash on Risk Appetite, EPFR Says
By Chan Tien Hin and Jason Webb

Flows into emerging-market equity funds and high-yield bonds reached a six-week high in the week to Sept. 15 as investors bet the global rally will be sustained and developing nations will grow the fastest, EPFR Global said.

“Emerging markets have done really well with higher risk appetite,” said Jason Chong, who helps manage the equivalent of $900 million of assets as chief investment officer at Manulife Asset Management (Malaysia) Sdn. in Kuala Lumpur. “I’m bullish that over a 12-month basis, emerging markets will definitely continue to outperform.”

Asian currencies strengthened as investors sought to buy into some of the world’s fastest-growing economies.

The difference between the return investors require from emerging-market sovereign bonds and U.S. Treasuries widened by two basis points to 2.75 percent, according to the JPMorgan Chase & Co. EMBI+ index.

http://www.bloomberg.com/news/2010-09-1 ... redit.html

[winston]

Emerging-Market Equity Inflows Climb to Highest in Seven Weeks, EPFR Says
By Shiyin Chen

Emerging-market stock funds drew the most inflows in seven weeks and commodity funds posted the best week since early June amid speculation central banks globally will provide additional stimulus, EPFR Global said.

All equity funds tracked by EPFR took in a net $3.3 billion for the week, with Asia excluding Japan stock funds posting their best week in more than 15 months, the research company said in an e-mailed statement. All bond funds attracted $4.8 billion, the most in a month, according to the statement.

“Markets have caught a real tailwind off of this idea that quantitative easing is imminent and that central banks around the world will be very relaxed,” Mark Matthews, a strategist at Macquarie Group Ltd., said in a Bloomberg Television interview in Singapore. “As long as the market believes it, it will continue to grind up, so I would not want to be very short the market right now.”

Developed Markets

Among developed nations, U.S. and Japan equity funds inflows were offset by net withdrawals of $1.05 billion from Europe stock funds, the most in 18 weeks, according to Cambridge, Massachusetts-based EPFR.

Emerging-market stock funds tracked by EPFR globally took in $3.38 billion during the week, taking net inflows to $45 billion for the year, EPFR said. Asian stock funds had their best weekly performance since June 2009, helped by the highest inflows into India in nearly three years and the best week in more than four months for China, the research company said.

The geographically diversified global emerging-market equity funds reported a 17th straight week of net inflows, while funds investing in Latin America and emerging Europe, the Middle East and Africa also posted gains, the research company said.

Gold prices also rose to new highs, reaching $1,297.50 an ounce this week. That helped to boost commodity funds, which have taken in $11.7 billion this year, according to EPFR.

Developing-nation, global and U.S. bond funds all took in more than $1 billion while high-yield bond funds absorbed $786 million, EPFR also said. Year-to-date inflows for all bond funds tracked by EPFR climbed past $320 billion, equivalent to 106 percent of the full-year total for 2009, according to the statement.

http://www.bloomberg.com/news/2010-09-2 ... -says.html

[winston]

Investors race to emerging market fundsBy Richard Milne and Nicole Bullock, FT.com
(FT) -- Emerging market bond and equity funds are set for a record level of inflows in 2010 as investors increasingly abandon those dealing in western shares.

About $40bn of investors' money has flowed into emerging markets debt funds in the first nine months of the year -- four times the previous record for a full year, according to EPFR, a data provider that monitors fund flows.

Inflows into global and US bond funds are also set to hit record amounts this year, raising fears of a bubble in the debt markets.

Cameron Brandt, global markets analyst at EPFR, said the "re-rating" of emerging market debt was the big trend of the year as investors who have fled to the relative safety of bonds look for higher returns: "Emerging markets bonds are where the real desperation for yield has been. To buy into them you have to [ignore] a lot of political risk."

The main outflows have come from money market funds, which have seen $500bn leave in the first nine months as investors became fed up with the extremely low interest rates they offer.

Equity funds in emerging markets have seen inflows of $50bn, a striking contrast with the $80bn outflows recorded by western funds up until the end of September.

http://edition.cnn.com/2010/BUSINESS/10 ... index.html

[winston]

Emerging Market Equity Fund Inflows Exceed $6 Billion in Week, EPFR Says
By David Yong

Oct. 8 (Bloomberg) -- Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc, talks about global currencies and Asian economies. Asia’s role as leader of the world recovery has lured $2 billion of capital inflows daily since 2009, spurring record gains in foreign-exchange reserves, according to DBS Group Holdings Ltd.

The equity funds received net inflows of more than $6 billion in the week ended Oct. 6, the biggest amount in 33 months, the Cambridge, Massachusetts-based research company said in an e-mailed statement.

Investors added $1.1 billion to funds dedicated to emerging-market debt, it said. They took out $3.2 billion from U.S. stock funds, the most in five weeks.

Record Inflows

“With the value of the U.S. dollar slumping to multi-year lows, flows into emerging-market assets and commodities accelerated,” according to EPFR, which tracks $13 trillion of total assets. “Commodity-producing countries and regions attracted the strongest interest.”

Net inflows into commodity-sector funds amounted to $706 million, taking the year’s tally to almost $19 billion.

Before today’s report, investors had plowed $49.4 billion into emerging-market stock funds this year and $39.5 billion into bond funds through Sept. 30, both poised for a record annual tally, EPFR said on Oct. 1.


http://www.bloomberg.com/news/2010-10-0 ... -2007.html

[winston]

Overseas investors pumped the most cash into emerging- market equities since late 2007 in October and Asia bond funds attracted more capital on further signs growth in developed nations is slowing, according to EPFR Global on Oct. 8.

The equity funds received net inflows of more than $6 billion in the week ended Oct. 6, the biggest amount in 33 months, the Cambridge, Massachusetts-based research company said in an e-mailed statement.

Investors added $1.1 billion to funds dedicated to emerging-market debt, it said.

Inflows are breaking records since EPFR started tracking the data in 1995 on speculation central banks will join Japan's monetary easing, releasing more capital that can be invested in higher-yielding assets.

Source: Bloomberg

[winston]

Emerging Equity Funds Draw Flows for Sixth Week on Possible U.S. Stimulus

Emerging-market equity funds attracted more cash for a sixth straight week as overseas investors sought faster growth amid expectations the U.S. Federal Reserve will add stimulus, according to EPFR Global.

Developing-nation stock funds took in $4.1 billion for the week ended Oct. 13, more than half the $7.63 billion total investors put into equity funds, the Cambridge, Massachusetts- based research company said in an e-mailed statement.

Investors added $1.5 billion to funds dedicated to emerging markets debt, while withdrawing money from Japan stock funds for a 15th week in the past 16 weeks, it said.

Emerging markets equity funds have taken in more than $60 billion in net inflows this year, with $23.3 billion coming since the beginning of September, EPFR said. Investors have put $41 billion in net funds into developing-nation bond funds this year, it said.

http://www.bloomberg.com/news/2010-10-1 ... mulus.html

[winston]

Emerging-Market Stocks Decline, Extending First Weekly Drop Since August
By Michael Patterson

Developing-nation stocks fell, extending the MSCI Emerging Markets Index’s first weekly drop since August, as lower metals prices dragged down raw-materials companies and Wipro Ltd.’s profit missed analysts’ estimates.

Shares retreated even as global emerging-market equity funds lured record inflows last week while initial public offerings by Coal India Ltd. and AIA Group Ltd. attracted bids for more stock than they offered to sell. The MSCI emerging markets index has climbed 13 percent the past three months as developing-nation companies attracted a record $141 billion from stock sales last quarter, data compiled by Bloomberg show.

Global emerging-market equity funds took in $3.8 billion in the week ending Oct. 20, Cambridge, Massachusetts-based research company EPFR Global said in an e-mailed statement.

Year-to-date inflows into the funds now exceed the record $44.2 billion for the whole of 2009, EPFR said.

http://www.bloomberg.com/news/2010-10-2 ... ugust.html

[winston]

Emerging-market equity mutual funds attracted more than $60 billion this year and bond funds lured $41 billion, both on track for record annual inflows, according to data compiled by EPFR Global, a Cambridge, Massachusetts-based research firm.

Source: Bloomberg

[winston]

Funds dump U.S./eurozone stocks for emerging mkts: Reuters poll

LONDON (Reuters) - Solid growth in emerging markets and a struggling U.S. economy prompted global investors to pump money into Asian and Latin American stocks in October, Reuters polls showed on Thursday.

Four surveys of 56 leading investment houses in the United States, Europe ex-UK, Britain and Japan showed equity holdings at their highest level in six months and bonds at their lowest since May.

But the overall figures masked a shift away from U.S. and euro zone equities toward emerging markets and Britain, whose major companies have large global exposure.

Overall, the 56 firms raised equity holdings to 52.7 percent of a typical portfolio of mixed assets from 50.8 percent in September.

Bonds dropped to 34.6 percent from 36.1 percent and cash fell to 5.0 percent from 5.4 percent, still a high enough level to provide more fuel for a risk rally.

Within equity portfolios, however, it is clear that the primary driver for the October stock market rally has been a shift into emerging markets.

Exposure to equities in emerging Europe, Asia ex-Japan. Latin America and Africa/Middle East rose to 15.6 percent of a typical stock portfolio from 14.3 percent a month earlier.

By contrast, investors cut U.S. equity holdings to 42.4 percent from 43.2 percent, and euro zone stocks to 20.8 from 21.6 percent.

Respondents said one of the main catalysts for the move to equities was the prospect for more asset-buying, or quantitative easing, from central banks, mainly the U.S. Federal Reserve. This would pump liquidity into the system, weaken the dollar, make emerging market currencies more attractive and lift commodity prices.

"We have been putting some cash back to work recently, particularly into equities and precious metals," said Neil Michael, executive director, investment strategies at London & Capital.

"These assets will benefit from QE because investors will be looking to re-invest the proceeds from the sale of government bonds to the central banks."

REGIONALLY

U.S. fund managers raised their exposure to equities in October and cut their high allocation to fixed-income assets.

The 14 U.S.-based fund management firms polled raised equity holdings for a second consecutive month to an average 62.4 percent of their assets, compared with 61.7 percent in September and 61.5 percent in August.

Fixed-income securities, including government, investment-grade and high-yield "junk" bonds, dropped for a second consecutive month to 30.4 percent in October from 31.1 percent in September

http://www.reuters.com/article/idUSTRE6 ... orethebell