Investors flock to emerging markets in ‘05
Emerging market bond funds have enjoyed record inflows so far this year and most classes of emerging market equity funds have also seen big inflows, according to Emerging Portfolio Fund Research.
The Massachusetts-based research house, which tracks 8,000 international and emerging market funds accounting for US$4 trillion, says a net US$3.02 billion has flowed into emerging market bond funds for the first five months of 2005, a runaway record.
The researcher said emerging market bond funds had defied a spike in risk aversion caused by recent rumours of trouble in hedge funds, and had continued to be popular while similarly risky high yield bond funds had been sold off.
In a further sign that investors are willing to go beyond the industrialised markets for precious returns, most classes of emerging market equity fund have also had massive inflows so far this year.
In total, the asset class has seen a net US$2.06 billion flow into its coffers, with a small net outflow in global emerging market funds offset by gains in all the specialist funds — Asia ex-Japan, Latin America and especially Europe-Middle East-Africa funds, which have attracted a whopping net US$2.44 billion year to date.
Recommended for you
ETF investors would be wise to consider global or European exposure for their equity ETF allocations, according to AXA IM, with US government action expected to hit both its equity and bond performance.
Platinum Asset Management has entered into binding terms for a merger with L1 Capital with the firm to be renamed upon completion, ending a fund management brand that has existed for over 30 years.
Prime Value Asset Management has launched a retail fund investing in microcap companies, a new version of its existing wholesale offering.
Two active fund managers have outshone rivals to report double-digit share price growth of more than 40 per cent for FY25, but another has lost more than 50 per cent.
