Investors pull out $365 mn from Asia funds; India sees inflows

Investors pull out $365 mn from Asia funds; India sees inflows
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First Published: Mon, Jul 13 2009. 03 53 PM IST
Updated: Mon, Jul 13 2009. 03 53 PM IST
New Delhi: India-focused funds saw net inflows of $52 million even as global investors pulled out over $365 million from Asia-dedicated equity funds in the first week of July.
According to the data compiled by the international fund- tracking firm, EPFR Global, all Asia - excluding Japan - equity funds surrendered $365 million in early July although they remain committed to investing in India and Russia.
“Fresh doubts about US appetite for emerging markets exports and global demand for raw materials prompted investors to pull some money off the table in early July,” the EPFR report said.
At the country level, investors removed $424 million from China Equity Funds and $244 million from Brazil Equity Funds. But they committed modest sums to Russia Equity Funds despite the pressure on oil prices and reacted to the general disappointment voiced about India’s latest budget by steering $52 million into India Equity Funds, it added.
Besides, funds geared on all four of the BRICs (Brazil, Russia, India and China) and invested for the 16th consecutive week. So far this year, the net investment by funds focused on the combined BRIC region stood at $2 billion.
Among the other emerging markets, Latin America and Europe, Middle East and Africa (EMEA) equity funds posted inflows for to the tune of $1 million.
While the Latin America-focused equity funds pulled out $307 million, the diversified Global Emerging Markets (GEM) equity funds saw inflows for the first week of July of about $131 million.
Collectively, the Global Equity Funds saw fresh money worth $659 million and Pacific Equity Funds witnessing inflows worth $84 million during the week.
“Fears that spring’s green shoots could wither in the harsh light of the 2Q 2009 earnings season weighed on developed markets and the funds that invest in them during early July, with US Equity Funds recording outflows for a fourth straight weeks and Europe Equity Funds for the seventh time in the past eight weeks,” the report said.
Besides, Japan Equity Funds posted inflows for the second straight week, taking in a net $147 million for the week.
Also the EPFR global-tracked sector funds saw outflows during the first week of July as projections for demand remained flat.
Energy sector funds saw redemption of $452 million by investors, their biggest weekly tally since late December, while financial sector funds surrendered $336 million.
Money Market Funds also posted outflows of $2.68 billion for the week despite the general uncertainty evident among investors.
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First Published: Mon, Jul 13 2009. 03 53 PM IST