Some Fund Groups on Track for Record Year

EPFR Global-tracked Emerging Markets, U.S. and Global Bond Funds remain on track for record-setting years going into the fourth quarter, as are Global Emerging Markets (GEM) Equity Funds.

EPFR Global said outflows from Money Market Funds slowed appreciably during the third quarter, but these funds could still easily eclipse the outflow record of $512 billion they set last year. Since the start of 2009 investors have removed nearly $1 trillion.  

During the final week of September EPFR Global-tracked bond funds pulled in another $4.31 billion while equity funds absorbed a net $4.6 billion as flows into emerging markets equity funds hit an 11-month high. Redemptions from Money Market Funds totaled $5.2 billion.  

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EPFR Global-tracked GEM Equity Funds, geographically diversified funds that are mandated to invest in all emerging markets globally, ended September with their 18th consecutive week of net inflows. YTD flows into this fund group now stand at 87% of last year’s record $44.2 billion. Asia ex-Japan Equity Funds continued their recent rebound, taking in over $1.5 billion for the second week running, and Latin America Equity Funds posted their biggest weekly inflow since early 4Q09.  

Brazil Equity Funds attracted a 48-week high of $348 million. The story of the third quarter for this region, however, remains the interest shown by investors in smaller markets with Chile, Peru and Colombia Equity Funds attracting above average inflows, according to EPFR Global.  

A similar shift was evident among investors in Emerging Europe, Africa and the Middle East (EMEA) , with Turkey Equity Funds absorbing more than twice the amount of new money as Russia Equity Funds during the third quarter. Africa Regional Equity Funds remain on track for a record setting year, although 3Q10 saw them post their biggest weekly outflow since late 2Q09 and subsequently record consecutive weeks of outflows for the first time in over 17 months.  

Going into the fourth quarter, U.S. and Emerging Markets Bond Funds had only posted weekly outflows once YTD and Global Bond Funds twice. Net inflows so far this year into Emerging Markets, Global and U.S. Bond Funds currently stand at 430%, 180% and 84% of the best full-year totals on record.