JPM: EM Equity Fund Inflows Highest Since End Of March

J.P.Morgan note that in the week ending 31 May:

• EM bond flows were +$1.5bn (+0.26% of weekly AUM, prev. +$1.7bn); EM equity flows were +$4.1bn (+0.26% of weekly AUM, prev. $974mn).
• YTD flows to EM bonds and equities: +$37.5bn and +$85.3bn, respectively.
• Overall EM bond inflows fell this week as both hard currency bond fund (+$962mn), and local currency bond fund (+$510mn) inflows slowed marginally. The local currency bond fund inflows were once again mainly into China-related bond funds (+$487mn) with EM ex-China local currency bond fund flows basically flat (+$23mn).
• EM equity fund inflows increased sharply to the largest inflow since the end of March (+$4.1bn, prev. -$974mn) with inflows increasing across both ETF funds (+$2.9bn) and non-ETFs (+$1.2bn). Within regional equity funds, Asia ex-Japan had the largest inflow since the start of March (+$2.0bn, prev. +$517mn), while both EMEA and Latam had another week of small outflows (-$20mn and -$60mn, respectively).
• EM local bonds had marginal inflows from non-residents (+$30mn prev. +$225mn), as outflows from India (-$128mn) and Hungary (-$108mn) were offset by inflows into Indonesia (+$268mn). Non-residents net inflows into EM equities increased materially (+$2.6bn, prev. -$179mn), with notable inflows in: Taiwan (+$769mn); India (+$776mn), the largest since mid-March; Brazil (+$597mn); and Korea (+$416mn).