Emerging market outflows hit two-year high

Emerging market fund flows have suffered their worst week since 2011, as investors fear a correction arising from the tapering of the US's QE program.

In the week to 5 June, investors pulled a net total of $7bn from emerging market bond and equity funds, according to research group EPFR. Equity funds reported net outflows of $5.5bn; the worst week since February 2011. Meanwhile, EM bond funds shed $1.5bn, after a fall of $240m the previous week, to record their worst week since October 2011. Local currency debt funds reported their first net outflow since July 2012, down $343m, while hard currency bond funds lost $984m. Steve Ellis, manager of the £775m Fidelity Emerging Market Debt fund, said the "broad and indiscriminate wav...