em bond and equity funds surge in popularity

Emerging market bond funds saw record inflows in the first week of February, as their equity counterparts witnessed continued appetite from investors, according to EPFR Global.

em bond and equity funds surge in popularity

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Emerging market bond funds pulled in $2.14bn in the week to 8 Feb, while emerging market equity funds set a 68-week high of $5.8bn in inflows.

This took year-to-date inflows to $3.8bn and $17bn respectively, compared with $2.7bn and $11.4bn for the same period last year.

In keeping with the increased risk sentiment, high yield bond funds also posted their second-highest weekly inflow on record, and Europe equity funds had their best week in nearly six months.

Overall, EPFR Global-tracked equity funds absorbed $9.83bn in the week, while bond funds took in more than $6bn.

Investors still preferred to hedge their risk, however, buying into funds with diversified exposure, meaning global emerging market, Asia ex-Japan, Latin America and EMEA equity funds saw solid inflows.

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