EM funds suffer worst outflows in seven years

Emerging markets funds have been hit by the biggest level of outflows in seven years, as issues including MSCI stalling on adding Chinese A-shares to its benchmarks weighed on sentiment.

According to the FT, data from funds tracker EPFR suggests $9.3bn left emerging markets funds in the week to Thursday; the highest level since 2008. The vast majority, $7.1bn, was pulled from funds investing in Chinese equities after weeks of strong inflows, while GEM funds lost $829m and Latin American funds fell $442m. Emering markets set to weather global headwinds and those in the firing line Analysts at ANZ said this week's outflow from China funds was probably due to increased volatility in the domestic share markets, with some fearing a bubble may be developing, but the ...