You are here: Home - Investing -

Investors pull record $6.3bn from emerging market equity funds

0
Written by:
03/02/2014
Investors pulled $6.3bn out of emerging market equity funds during the final week of January, as concerns over developing markets intensified.

Figures from EPFR Global show institutional investors, who removed over $5bn, represented the bulk of the emerging market sellers during a week in which central banks struggled to regain control of their currencies.

Aggressive rate hikes in Turkey and then South Africa proved ineffective in strengthening the Turkish lira and South African rand, causing emerging market equities to slump in turn.

EPFR said the $6.3bn outflow for the week to 29 January is the largest amount on record in terms of US$ terms, and the largest since the first quarter of 2011 in terms of percentage under assets.

Year-to-date redemptions from emerging market equity funds now stand at $12.2bn, compared to $15bn for the whole of last year, according to EPFR. ETF redemptions accounted for two-thirds of this year’s withdrawals.

Of the main sub-sectors, global emerging market equity funds suffered their worst week on record in the seven days to 29 January, while EMEA, Latin America and Asia ex. Japan equity funds also failed to escape the sell-off.

With data this weekend confirming a slowdown in Chinese production numbers, emerging market equities endured another difficult day’s trading overnight, with key indices dropping 1% or more.

Japanese markets also continued to suffer: the Nikkei closed down 2% this morning to take year-to-date losses to 10%. That follows a 57% surge for the index last year.

 

 

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Lloyds Banking Group sets aside another £1.8bn for PPI claims

Lloyds Banking Group is increasing its provision for the mis-selling of payment protection insurance (PPI) by another £1.8bn, bringing the...

Close