Friday, 13 February 2009

Emerging Market Bond Funds Suffer Outflows in Feb. 11 Week; Local Currency Funds See Largest Redemptions, Says EFPR

In the week ended Feb. 11, emerging market debt funds experienced $580 million worth of outflows (equivalent to 1.38 percent of assets under management,) according to EFPR. The outflows were twice the $260 million outflow recorded in the prior week. Net redemptions were seen across all fund types with the greatest nominal outflow seen for local currency funds ($329 million pulled by investors in total -- 3 percent of AUM.) In the previous week, the decline was $127 million.

So far in 2009, emerging markets debt funds have seen assets under administration drop by about $3 billion. Dedicated high-yield funds continue to be ''the beneficiary of new investor money,´´ according to ING Bank NV, adding that inflows in the Feb. 11 week were $687 million. ''So far this year, inflows have amounted to $3.4 billion, with market price effects adding a further $3.2 million to asset value,´´ ING wrote.

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