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6 Feb 2015
Asia pacific fund flows: EM investors wary of currency risk – ANZ
FXStreet (Barcelona) - The Research Team at ANZ shares the fund flows data into Emerging Asia funds, noting that outflows returned this week, and bond inflows increased in the EM region with investors wary of EM currency risk.
Key Quotes
“For the week, the region registered USD0.1bn of outflows as compared to the previous week’s inflow of USD0.5bn.”
“Outflows were driven mostly by a reversal of flows in equities (USD0.5bn outflows versus USD0.5bn inflows in the previous week). In contrast, bonds saw an increase in inflows to USD388m from USD40m previously.”
“China drove the bulk of equities outflow at USD1.0bn, an increase from USD0.9bn previously. The outflow likely came on the back of a weaker than expected China official PMI reading which declined to 49.8 in January, a low last seen in September 2012.”
“For the EM region as a whole (including Asia, Latam and EEMEA), bond inflows turned positive the first time in 9 consecutive weeks, registering USD879m from an outflow of USD183m previously.”
“Most of the inflow was into hard currency funds, an indication that investors do not want exposure to EM currency risk.”
Key Quotes
“For the week, the region registered USD0.1bn of outflows as compared to the previous week’s inflow of USD0.5bn.”
“Outflows were driven mostly by a reversal of flows in equities (USD0.5bn outflows versus USD0.5bn inflows in the previous week). In contrast, bonds saw an increase in inflows to USD388m from USD40m previously.”
“China drove the bulk of equities outflow at USD1.0bn, an increase from USD0.9bn previously. The outflow likely came on the back of a weaker than expected China official PMI reading which declined to 49.8 in January, a low last seen in September 2012.”
“For the EM region as a whole (including Asia, Latam and EEMEA), bond inflows turned positive the first time in 9 consecutive weeks, registering USD879m from an outflow of USD183m previously.”
“Most of the inflow was into hard currency funds, an indication that investors do not want exposure to EM currency risk.”