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E-mail ID will not be published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

  • Kejriwal will do well to ignore the bickering and get on with work

    Psychologists explain implosion as a form of behaviour involving intensive recollection and review of anxiety-producing situations or events in an att

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Today's Columns

Simon J Evenett

Are you keeping an eye on BRIC reforms?

When the history of state action during the crisis era ...

Kuruvilla Pandikattu SJ

How do we explain pain and passion?

The holy week that the christians celebrate this week recalls ...

Shona Adhikari

Anjolie Ela Menon, the storyteller, is back

Anjolie Ela Menon, one of India’s most celebrated artists, is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture