Judging by
emerging market fund flows, which improved in 2017 but saw no huge step - change in growth, that thesis still seems valid — so while local demand helped, I suspect a significant portion of emerging & frontier market returns simply came from price mark - ups, rather than incremental foreign demand.
Not exact matches
Despite the opportunity, not a lot of money has
flowed into
emerging market or international bond
funds this year.
Global growth has slowed more than investors had previously anticipated and political risk has risen; yet over the past four years
flows into
emerging markets funds have remained very strong despite their underperformance.
[T] he dramatic increase in leveraged bond positions by both US hedge
funds and mundane money managers set in motion self - reinforcing liquidations once uncertainty over
emerging markets including Turkey, Venezuela, Mexico, and Malaysia - all of which experienced sharp capital
flow volatility - put pressure on speculative positions.
With dollar weakness complicating the investment case for U.S. fixed income assets,
flows to U.S. Bond
Funds were close to neutral going into March as investors pulled back from all the major groups except
Emerging Markets Hard Currency Bond
Funds...
Emerging markets could see
funds flowing back to them as central banks unwind quantitative easing and liquidity
flows back to emering
market assets.
Finally, according to BlackRock
funds data, net
flows into
emerging market ETFs have turned positive recently, as more and more investors seem to be noticing the potential opportunities there (source: BlackRock, Bloomberg as of 4/23/15).
The rand and the lira are widely considered to be among the most vulnerable
emerging market currencies, as both South Africa and Turkey are reliant on foreign investment
flows to
fund their wide current account deficits.
Finally, according to BlackRock
funds data, net
flows into
emerging market ETFs have turned positive recently, as more and more investors seem to be noticing the potential opportunities there (source: BlackRock, Bloomberg as of 4/23/15).
For example, Vanguard MSCI
Emerging Market ETF (NYSE: VWO) can tax - efficiently capture emerging market segment well, while minimizing fund flow issues and for a relatively low cost annually, but the fees could
Emerging Market ETF (NYSE: VWO) can tax - efficiently capture emerging market segment well, while minimizing fund flow issues and for a relatively low cost annually, but the fees could c
Market ETF (NYSE: VWO) can tax - efficiently capture
emerging market segment well, while minimizing fund flow issues and for a relatively low cost annually, but the fees could
emerging market segment well, while minimizing fund flow issues and for a relatively low cost annually, but the fees could c
market segment well, while minimizing
fund flow issues and for a relatively low cost annually, but the fees could change.
Emerging markets funds took in $ 19.9 billion of net new money for Q1 2018, which was their second largest quarterly net - positive
flow ever, trailing only the $ 20.8 billion for Q3 2010.
Emerging markets funds (including both mutual
funds and ETFs) suffered net outflows of $ 395 million for the
fund -
flows week ended Wednesday, May 2, 2018.
The largest net - positive
flows among nondomestic equity
funds belonged to Lipper's Emerging Markets Funds peer group (+ $ 493 million), and the largest net - negative flows for domestic equity funds were attributable to Equity Income Funds -LRB-- $ 781 mill
funds belonged to Lipper's
Emerging Markets Funds peer group (+ $ 493 million), and the largest net - negative flows for domestic equity funds were attributable to Equity Income Funds -LRB-- $ 781 mill
Funds peer group (+ $ 493 million), and the largest net - negative
flows for domestic equity
funds were attributable to Equity Income Funds -LRB-- $ 781 mill
funds were attributable to Equity Income
Funds -LRB-- $ 781 mill
Funds -LRB-- $ 781 million).
Broad / regional
emerging market stock
funds pulled in $ 38 billion in
flows for the year, and single country
emerging market stock
funds accrued a relatively strong $ 4 billion — especially compared with anemic
flows in prior years.
In late 2016, billions
flowed out of
emerging market (EM)
funds due to a rising US dollar and the promise of Trump's pro-growth policies.
While these
markets still offer the best growth opportunities & ever - cheaper valuations (I'm tempted on a regular basis)... as I detailed last year,
fund flows & sentiment suggest developed
markets will keep leading the way, while any kind of serious
market reversal seems likely to impact
emerging & frontier
markets just as severely.
Turrini continued: «The growth of
emerging markets in Asia has created a
flow of capital between west and east — often to
fund mega-infrastructure and construction projects.