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13 Mar 2015
EM outflows being driven by currency funds – ANZ
FXStreet (Barcelona) - FX Strategists at ANZ, highlight the fund flow data into Emerging Asia and EM as a whole, noting that less appetite for EM FX risk is driving outflows from the region.
Key Quotes
“For the week, Emerging Asia registered USD2,416m of outflows. This is a reversal from the previous week’s USD338m inflow. The reversal in flows was driven by both equities (USD2,140m outflow versus USD261m inflow previously) and bonds (USD276m outflow versus USD77m inflow previously).”
“China and Korea were the biggest contributors to the outflows during the week. Cumulatively, they contributed USD2,317m out of the USD2,416m of outflows registered in the region.”
“India bucked the trend in the region, registering the biggest portfolio inflows for the week. While inflows moderated to USD147m from USD780m, India is receiving inflows for the 8th consecutive week. The continuation of inflows into India shows that investors remain positive on the economy’s prospects.”
“For the EM region as a whole (including Asia, Latam and EEMEA), bond outflows were registered for the first time in six weeks (USD598m outflow from USD698m inflow previously). The outflows were driven solely by local currency funds, an indication that investors do not want exposure to EM currency risk.”
Key Quotes
“For the week, Emerging Asia registered USD2,416m of outflows. This is a reversal from the previous week’s USD338m inflow. The reversal in flows was driven by both equities (USD2,140m outflow versus USD261m inflow previously) and bonds (USD276m outflow versus USD77m inflow previously).”
“China and Korea were the biggest contributors to the outflows during the week. Cumulatively, they contributed USD2,317m out of the USD2,416m of outflows registered in the region.”
“India bucked the trend in the region, registering the biggest portfolio inflows for the week. While inflows moderated to USD147m from USD780m, India is receiving inflows for the 8th consecutive week. The continuation of inflows into India shows that investors remain positive on the economy’s prospects.”
“For the EM region as a whole (including Asia, Latam and EEMEA), bond outflows were registered for the first time in six weeks (USD598m outflow from USD698m inflow previously). The outflows were driven solely by local currency funds, an indication that investors do not want exposure to EM currency risk.”