Asia equity funds attract $1.56 bn; India corners $211 mn

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Asia equity funds attract $1.56 bn; India corners $211 mn

This article was posted on Aug 3, 2009 and is filed under Press Releases

NEW DELHI: With an increased risk appetite, global investors poured in over USD one billion in equity funds focused on the Asian economies in
the fourth week of July and India alone received $211 million.

With the Indian equity market touching a 13-month high level last week, flows into India Equity Funds hit a Year-To-Date (YTD) high of $211 million, according to the data complied by international fund-tracking firm EPFR Global.

“Against a backdrop of rising risk appetite and key equity markets at 6-10 month highs, Asia, excluding-Japan, Equity Funds funds absorbed $1.56 billion,” EPFR said.

Besides, China and Greater China Equity Funds between them absorbed $711 million and both Russia and Brazil Equity Funds posted inflows in excess of USD 100 million.

The BRICs (Brazil, Russia, India and China) theme continued to resonate with investors with equity funds dedicated to the region receiving new money for a 19th straight week.

With investment in BRIC stocks climbing to more then USD one billion in the fourth week of July, EPFR noted that “funds investing in BRICs markets continue to be money magnets.”

Overall inflows into emerging market equity funds rebounded during the fourth week of July as earnings season sustained investor hopes, and optimism about Chinese property demand and increased domestic consumption helped many individual equity markets gain between 6 and 10 per cent.

The diversified Global Emerging Markets equity funds received $905 million, taking the YTD figure over the $16 billion mark, while EMEA (Europe, Middle East and Africa) and Latin America Equity Funds took in $229 million and $208 million respectively during the week, the report added.

Global Equity Funds took in a net USD 821 million while Pacific Equity Funds absorbed another USD 98 million which took YTD inflows past $1 billion, it said.

Investors funneled $722 million into the EPFR global-tracked financial sector funds, followed by technology (USD 323 million), consumer goods ($186 million) and real estate sector funds ($150 million).

“Signs of light in the US housing market allowed investors to project increased consumption by US consumers in the months ahead and trim expectations of property-related writedowns by lenders,” the report said.

Investors responded to a slew of better-than-expected earnings and macro-economic data in late July by pumping fresh money into a broad range of asset classes, the report said, adding that the US focused funds snapped its six week outflow streak as this fund group enjoyed its biggest weekly inflow since mid-December.

source: Economictimes

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