JPM: EM Retail Hard FX Bond Funds See Largest Inflow Since Feb

J.P.Morgan note that in the week ending 30 June "EM bond flows were +$2.7bn (+0.48% of weekly AUM, prev. -$981mn) while EM equity flows were +$1.6bn (+0.10% of weekly AUM, prev. +$622mn)."

• "YTD flows to EM bonds and equities sit at +$47.3bn and +$91.4bn, respectively."
• "For EM bond funds overall inflows increased substantially, more than offsetting last week's outflows, as hard currency bond fund inflows were the largest since 3 February (+$1.7bn), with local currency bond fund also attracting inflows (+$1.0bn). Within local currency funds, both EM ex-China bond funds (+$415mn) and China-related bond funds (+$606mn) attracted inflows."
• "For EM equity funds overall inflows increased materially (+$1.6bn prev. +$622mn). Inflows were split pretty equally across ETFs (+$861mn) and non-ETFs (+$774mn). Within regional equity funds, Asia ex-Japan reverted back to inflows (+$415mn prev. -$170mn) while both EMEA and Latam had outflows (-$56mn and -$27mn, respectively)."
• "In terms of non-resident EM portfolio flows, local bonds had small inflows (+$272mn, prev. -$2.6bn), led by Indonesia (+$411mn) which offset outflows in Hungary (-$151mn). EM equities reverted back to inflows (+$623mn prev. -$3.7bn), as inflows into Taiwan (+$652mn), Brazil (+$423mn), and Korea (+$203mn) offset outflows in South Africa (-$325mn), and Thailand (-$169mn)."