NEW DELHI: Emerging-nation equity funds managed to attract USD 42 million in fresh capital during the week ended April 6, even as investors remained concerned over government's policies in these countries, according to global fund tracker EPFR.
As per data compiled by EPFR, emerging market equity funds posted an inflow of USD 42.3 million for the week ended April 6 after witnessing redemptions of USD 130 million in the previous week.
The report said that policy concerns were not limited to the US and Europe. Fund groups dedicated to a number of major emerging markets, among them Brazil, India, Indonesia and Korea, endured rough weeks as investors cast a more critical eye over their governments and their actions, it added.
"In the case of Asia (excluding Japan equity funds), worries about the outlook for the region's key export markets were compounded by concerns about the direction of economic policy in India, Korea, Taiwan and Indonesia," the report said.
On India, the report said, "India equity funds saw outflows hit a 32-week high as investors digested a proposal in the recent budget to enable the levying of retroactive taxes on certain M&A deals."
As per EPFR's country-wise analysis, Brazil-dedicated equity funds experienced their worst outflows in two years, with USD 396 million going out while Indonesia equity funds reported their worst week since August in the wake of a failed effort to cut fuel subsidies.
Equity funds focused on Russia continued to stand out among the universe of emerging nation funds, taking in fresh money for the 10th consecutive week as they extended their longest inflow streak since first quarter of 2011.
Overall, funds dedicated to equity market, took in over USD 1 billion for the week under review, which narrowly offset redemption from Asia ex-Japan, Latin America and emerging market equity funds.
Funds focused on developed nation stocks posted a net inflow of USD 267 million for the week ended April 6.
So far in 2012, the total net inflow into emerging market equity funds reached USD 25.59 billion, as compared to a net an outflow of USD 24 billion for the same period of 2011.
(Source- http://economictimes.indiatimes.com)
As per data compiled by EPFR, emerging market equity funds posted an inflow of USD 42.3 million for the week ended April 6 after witnessing redemptions of USD 130 million in the previous week.
The report said that policy concerns were not limited to the US and Europe. Fund groups dedicated to a number of major emerging markets, among them Brazil, India, Indonesia and Korea, endured rough weeks as investors cast a more critical eye over their governments and their actions, it added.
"In the case of Asia (excluding Japan equity funds), worries about the outlook for the region's key export markets were compounded by concerns about the direction of economic policy in India, Korea, Taiwan and Indonesia," the report said.
On India, the report said, "India equity funds saw outflows hit a 32-week high as investors digested a proposal in the recent budget to enable the levying of retroactive taxes on certain M&A deals."
As per EPFR's country-wise analysis, Brazil-dedicated equity funds experienced their worst outflows in two years, with USD 396 million going out while Indonesia equity funds reported their worst week since August in the wake of a failed effort to cut fuel subsidies.
Equity funds focused on Russia continued to stand out among the universe of emerging nation funds, taking in fresh money for the 10th consecutive week as they extended their longest inflow streak since first quarter of 2011.
Overall, funds dedicated to equity market, took in over USD 1 billion for the week under review, which narrowly offset redemption from Asia ex-Japan, Latin America and emerging market equity funds.
Funds focused on developed nation stocks posted a net inflow of USD 267 million for the week ended April 6.
So far in 2012, the total net inflow into emerging market equity funds reached USD 25.59 billion, as compared to a net an outflow of USD 24 billion for the same period of 2011.
(Source- http://economictimes.indiatimes.com)
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