15 Feb 2016
Broad-based EM sell-off continues – RBS
Research Team at RBS, notes that the week to Wednesday showed EM outflows sharpen across bonds and equities.
Key Quotes
“EM FI funds recorded weekly withdrawals at -0.44% of AUM, with sizeable redemptions across both hard and local currency funds. The breakdown indicates weaknesses were spread across EM Europe, EM Asia and Latam.
EM Equities also remained out of favour, recording a 9th consecutive negative weekly flow print (-0.13% of AUM). As previously, EM Asia accounted for the majority of total EM equity outflows.
Looking at developed markets, bond fund flows remained subdued, yet, this is the only asset class attracting YTD inflows (see table below). DM FI funds saw marginal net injections on a weekly basis (+0.03% of AUM, or USD0.9bn). The data, however, indicate some inter-regional changes: while flows in DM Europe fell back into the negative in the latest week, North American FI was in favour.
Lastly, DM Equity funds recorded weekly redemptions at -0.09% of AUM, or –USD5.7bn. Unlike previously, all major regions were in the negative. While North America still accounted for the majority of outflows in absolute terms, DM Europe saw a first negative weekly print since October 2015.”
Key Quotes
“EM FI funds recorded weekly withdrawals at -0.44% of AUM, with sizeable redemptions across both hard and local currency funds. The breakdown indicates weaknesses were spread across EM Europe, EM Asia and Latam.
EM Equities also remained out of favour, recording a 9th consecutive negative weekly flow print (-0.13% of AUM). As previously, EM Asia accounted for the majority of total EM equity outflows.
Looking at developed markets, bond fund flows remained subdued, yet, this is the only asset class attracting YTD inflows (see table below). DM FI funds saw marginal net injections on a weekly basis (+0.03% of AUM, or USD0.9bn). The data, however, indicate some inter-regional changes: while flows in DM Europe fell back into the negative in the latest week, North American FI was in favour.
Lastly, DM Equity funds recorded weekly redemptions at -0.09% of AUM, or –USD5.7bn. Unlike previously, all major regions were in the negative. While North America still accounted for the majority of outflows in absolute terms, DM Europe saw a first negative weekly print since October 2015.”