Tuesday, 6 January 2009

Inflows Into Latin American Equities May Be Set to Improve

EFPR Global (a Boston-based company that tracks investor money flows into emerging market economies) said that emerging-market equity funds began to post modest outflows along the month of December. About $4 billion were poured into emerging market stock funds -- the best week for inflows in that category since at least 2006, according to Dresdner Kleinwort analysts. Good news!!!! The same happened to bond funds, which experienced good inflows last month. Yet, there is, according to EFPR, one interesting development taking place in Latin America: investors began in October to switch their country weights, resulting in reallocation and therefore bigger exposure to Colombia, Brazil, Mexico at the expense of Argentina, Ecuador and Venezuela.

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