Investors pull out $41b from emerging market funds in Jan-Mar

Investors pulled out over $41 billion from equity funds focused on emerging markets, including

RELATED ARTICLES

India, in the first three months of 2014, after the US Federal Reserve began winding down its quantitative-easing programme, says a report by funds tracking firm EPFR Global.

However, investors have started moving back to emerging market equities during the final days of March, it said.

According to the report, $41.05 billion has flown out of emerging market equities funds in January-March period of 2014, against an inflow of $29.78 billion in the same period last year.

"Emerging market equity funds endured a rough start to 2014 as the winding down of the Federal Reserve's quantitative easing programme, a crowded electoral calendar, mixed economic data from China and events in Ukraine gave both institutional and retail investors plenty of good reasons to keep a distance," the report added.

It, however, said the final days of March saw equity funds focused on emerging markets make a "modest but perceptible start on reversing the more than $40 billion worth of outflows -– a quarterly record –- that they chalked up during the first three months of 2014."

EPFR said rebound was mainly due to institutional investors as they were the main drivers of overall flows into equity funds.

At the country-wise level, equity funds focused on China witnessed a withdrawal of $3.01 billion in January-March period of 2014, followed by Korea ($1.56 billion), Mexico ($1.10 billion), India ($870 million), Brazil ($602 million) and Russia ($345 million).

The report said "flows into India equity funds began to rebound as investors responded to better inflation and current account deficit numbers and hopes of a more business friendly government in the aftermath of May's general elections."

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Subdued crude oil prices offer an excellent opportunity for India

    In Mid-June, when most of us probably first heard of the ISIS posing a serious threat to stability in West Asia, international crude oil price suddenl

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why UGC must focus on quality

In a vast country like India, where there are pressures ...

Rajgopal Nidamboor

The sum total of our conscious experience

All of us epitomise a multiplicity of conscious thoughts. This ...

Gautam Gupta

Don’t let success kill the essence of the concept

In 1999 when my mother started her own label, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture