Emerging Market Bonds Gain Record Fund Flows

By Carl Delfeld of Chartwell ETF & Emerging Markets Alpha

Brad Durham of EPFR Global reports that although the benchmark Dow Jones index regained the 10,000 mark as the 3Q09 earnings season kicked off with a bang, money kept flowing out of Money Market and US Equity Funds during the second week of October with emerging markets equity and bond funds the main beneficiaries.

Flows into the former hit a year-to-date high, with the diversified Global Emerging Markets (GEM) Equity Funds accounting for over half the net inflows, while the $967 million absorbed by Emerging Markets Bond Funds was the biggest weekly total since EPFR Global started tracking this data in 1Q01.

Money Market Funds, which saw inflows hit a 15-week high the previous week, surrendered 
another $28.1 billion during the week ending October 14 while outflows from US Equity Funds 
totaled $3.49 billion.

Overall, 18 of the 24 major equity, sector and fixed income fund groups tracked by EPFR Global recording inflows. Equity funds collectively posted inflows of $2.3 billion while fixed income funds (other than Money Market Funds) absorbed $5.5 billion for the week. 


To learn more about emerging market fixed income opportunities, go to Chartwell ETF.