Flows Reverse Back Into EM Debt

EM Debt funds saw inflows of $315m in the week ended February 20, according to ING which cites EPFR figures. The positive flow representing 0.46% of AUM for the asset class marked a reversal from the previous week, when $303m was pulled out of EM. “The details behind the data reveal that the positive number was more related to local currency fund allocations, which benefited from US$319m (1.86% AUM) worth of new money,” according to ING. That suggests investors preferred local currency versus hard currency when it came to EM, adds the report. Hard currency EM funds suffered losses of $121m during the period.