LONDON, June 13 (Reuters) - Investors poured around $3 billion into emerging equity and bond funds during the week to June 11, banks said on Friday, citing data from EPFR Global.
The Boston-based fund tracker, which releases data to clients late on Thursday, said emerging equity funds had received $2.2 billion, almost 10 times more than the previous week, analysts at Barclays told clients in a note
Emerging bond funds took in around $730 million, they said, though this is down from the previous week’s $2 billion inflow.
“Barring an escalation in Iraq-related geopolitical risks, European Central Bank policy action and the recent shift in emerging central bank monetary policies towards being more accommodative are likely to bring more inflows into growth assets, particularly equities,” Barclays said.
The ECB last week eased policy dramatically, taking deposit rates into negative territory. Mexico surprised with a rate cut a day later while central banks in eastern Europe are also expected to ease.
The latest figures bring year-to-date outflows from emerging equity funds tracked by EPFR to $27 billion, versus total 2013 outflows of around $14 billion.
Bond funds have shed $2.5 billion this year after outflows of $14 billion in 2013. But Unicredit noted that the entire outflow is down to local currency debt while hard currency funds have actually taken in $1.2 billion year-to-date.
Reporting by Sujata Rao