Fund flows favour US and emerging market equity

US equitiesEmerging market funds continued to see inflows last week, but investors pulled back from high yield due to the expected rise in US interest rates. ‘Junk’ bond funds had their biggest redemptions since mid-December according to EPFR Global, which provides global fund flow data. Overall, nearly $12 billion (€11.2 billion) flowed into all equity funds in the five days up until March 8, while bond funds raised $4.6 billion and money market funds took in a net $26.6 billion. EPFR said the “fair-to-good” economic data and Donald Trump’s reflationary agenda meant there were high expectations that US rates will rise again this week. This kept money flowing into US equity funds but also prompted investors to “pencil in” stronger demand for emerging markets and commodities. Diversified global emerging markets equity funds accounted for the bulk of the new money and only Latin America equity recorded inflows among the major regional fund groups. At the emerging market country level, Brazil equity funds took in fresh money for the seventh consecutive week and flows into Chile equity funds climbed to an 18-week high. ©2017 funds europe

Sponsored Profiles

SPONSORED FEATURE: Investing for income

May 17, 2017

Portfolio Manager Thomas Kruse examines the findings from Pioneer Investments’ survey on income investing and outlines ways of achieving a target income.

SPONSORED ARTICLE: A radical solution to KYC concerns

May 17, 2017

The 1MDB affair shows that lax know-your-customer and due-diligence procedures are a major risk, says Paolo Brignardello, head of product management and marketing, Fundsquare. New solutions are...

SPONSORED FEATURE: AIFMD - What does Brexit mean?

Apr 18, 2017

An open discussion between funds industry experts and initiated by SGG Luxembourg took place in London to examine  the implications of Brexit for UK fund managers marketing to the EU.

SPONSORED FEATURE: Luxembourg fund reporting – CRS vs FATCA

Apr 18, 2017

Luxembourg funds need clear procedures for CRS compliance, writes Andrew Knight, Partner at M Partners, a member of the Maitland network of law firms.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.



May 17, 2017

With such an intangible product, it can be hard for asset managers to communicate what they do. Having personality and connecting with customer aspirations may be the key, our branding roundtable hears.

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.