Investors exit EM funds amid US-North Korea tensions

EM equity funds see redemptions of $1.6bn

Investors pulled $1.6bn from emerging market equity funds in the week to 16 August, rattled by rising geopolitical tensions, according to data provider EPFR.

It was the first time the asset class had seen net redemptions in five months and the largest weekly outflow since last December, as investors also took out $79m from emerging market bond funds, according to data provider EPFR. The redemptions, which coincided with a week that saw a dip in US equity and credit market performance, and a rally in safe-haven treasuries, was spurred by deteriorating US-North Korea relations. Gosling's Grouse: North Korean tensions Investors are concerned the sabre-rattling could jeopardise President Donald Trump's ability to push through his pro-busine...