JPM: Weekly Inflows Concentrated In EM Retail Hard FX Bonds

J.P.Morgan note that for the week ending 7 July "EM bond flows were +$1.3bn (+0.24% of weekly AUM, prev. +$2.7bn); EM equity flows were -$240mn (-0.02% of weekly AUM, prev. +$1.6bn).)"

• "YtD flows to EM bonds and equities stand at +$48.7bn and +$91.2bn, respectively."
• For EM bond funds "overall inflows halved, as inflows were concentrated in hard currency bond funds (+$1.2bn), as local currency bond fund inflows fell and were close to flat (+$162mn). Within local currency funds, EM ex-China bond funds had outflows (-$181mn) which were more than offset by China-related bond fund inflows (+$343mn)."
• For EM equity funds "overall flows turned into outflows (-$240mn, prev. +$1.6bn). Outflows were concentrated in non-ETFs (-$431mn) as ETFs still attracted small inflows (+$191mn). Within regional equity funds, Asia ex-Japan reverted back to outflows (-$579mn, prev. +$415mn); in line with both EMEA and Latam (-$17mn and -$275mn, respectively)."
• In terms of non-resident EM portfolio flows "EM local bonds had small inflows (+$123mn, prev. +$221mn), as large inflows into Hungary (+$795mn, largest weekly since the 10th of February) more than offset outflows across South Africa (-$228mn), India (-$119mn), and Indonesia (-$326mn). Non-residents net outflows from EM equities increased (-$2.7bn, prev. +$716mn) as outflows were recorded in all tracked markets, notably in Taiwan (-$1.4bn)."