Emerging Market Bond Outflows Worst Since 2011: 5 Main Reasons

Emerging market fund flows have suffered their worst week since 2011, as investors fear a correction arising from the tapering of the U.S.’s Quantitative Easing program. During the week ending June 12, there were net redemptions of US$6.4bn in EM. Redemptions are four times 12 month average. Total net redemption in the last three weeks came in at US$15bn. YTD the flows were US$14bn (27.1% of total EM flows in  2012). The table below shows market data & net foreign investment,  June 6 – 12, 2013: The net flows by mandate were: Total EM equity funds US$6.4billion redemptions. (US$4.7billion redemptions…