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India Equity Research Reports, IPO and Stock News
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Strategy
Foreign fund-flow tracker
Emerging market ETFs see very large outflows amidst global concerns. Our
foreign fund-flow tracker offers a comprehensive view of market flow activity in India
and among its emerging market peers. Using a top-down approach, we analyze country
flows and the underlying factors which affect them such as fund flows and country
allocations for different fund types.
Country flows – India and Brazil witness the largest outflows in the last six months
Amidst global concerns over sovereign debt, net asset allocations fell 8-14% across our emerging
market universe on the back of severe market corrections as well as redemptions. Within the EPFR
universe, India and Brazil saw outflows of more than US$2.4 bn in the past six months. In the past
four weeks alone, Indian outflows amount to ~2% of the estimated net asset allocations (based
on EPFR’s universe of funds) while Taiwan and Russia saw outflows of US$1.8 bn and US$1.9 bn,
respectively.
Country allocations – Indian allocations for Asia ex-Japan funds down to 10.5%
Allocations to India fell in July even though the broader market valuations were at their cheapest
levels since May ’09. On a 12-month basis, India allocations were down ~1.5%. Within the Asia
ex-Japan universe of funds, most of the prominent geographies saw allocations fall in July.
Considering that cash balances rose only 0.1% mom (up from 2.7% to 2.8%), this could possibly
imply a move to smaller geographies. On a 3-month basis, only allocations to China remained
steady.
Fund flows – Eight of the 10 highest outflows in our EM universe were by ETFs
Within EPFR’s EM universe of ~1,300 funds, eight out the 10 highest outflows in the past month
were seen by exchange-traded funds. iShares MSCI Emerging Markets Index Fund topped the list
with outflows of US$1.3 bn followed by Fubon MSCI Taiwan ETF, iShares MSCI Hong Kong Index
and db x-trackers MSCI Emerging Market TRN Index ETF. AUMs shrunk further for Lyxor ETF Russia
(DJ RusIndex Titans 10) falling 28% mom. Within India, the top-10 largest funds in our Indian
universe saw outflows in excess of US$628 mn. On a proportional basis, large India-dedicated ETFs
like WisdomTree India Earnings Fund and Lyxor ETF MSCI India saw outflows equivalent to 5-6%
of their total fund size in the month.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Strategy
Foreign fund-flow tracker
Emerging market ETFs see very large outflows amidst global concerns. Our
foreign fund-flow tracker offers a comprehensive view of market flow activity in India
and among its emerging market peers. Using a top-down approach, we analyze country
flows and the underlying factors which affect them such as fund flows and country
allocations for different fund types.
Country flows – India and Brazil witness the largest outflows in the last six months
Amidst global concerns over sovereign debt, net asset allocations fell 8-14% across our emerging
market universe on the back of severe market corrections as well as redemptions. Within the EPFR
universe, India and Brazil saw outflows of more than US$2.4 bn in the past six months. In the past
four weeks alone, Indian outflows amount to ~2% of the estimated net asset allocations (based
on EPFR’s universe of funds) while Taiwan and Russia saw outflows of US$1.8 bn and US$1.9 bn,
respectively.
Country allocations – Indian allocations for Asia ex-Japan funds down to 10.5%
Allocations to India fell in July even though the broader market valuations were at their cheapest
levels since May ’09. On a 12-month basis, India allocations were down ~1.5%. Within the Asia
ex-Japan universe of funds, most of the prominent geographies saw allocations fall in July.
Considering that cash balances rose only 0.1% mom (up from 2.7% to 2.8%), this could possibly
imply a move to smaller geographies. On a 3-month basis, only allocations to China remained
steady.
Fund flows – Eight of the 10 highest outflows in our EM universe were by ETFs
Within EPFR’s EM universe of ~1,300 funds, eight out the 10 highest outflows in the past month
were seen by exchange-traded funds. iShares MSCI Emerging Markets Index Fund topped the list
with outflows of US$1.3 bn followed by Fubon MSCI Taiwan ETF, iShares MSCI Hong Kong Index
and db x-trackers MSCI Emerging Market TRN Index ETF. AUMs shrunk further for Lyxor ETF Russia
(DJ RusIndex Titans 10) falling 28% mom. Within India, the top-10 largest funds in our Indian
universe saw outflows in excess of US$628 mn. On a proportional basis, large India-dedicated ETFs
like WisdomTree India Earnings Fund and Lyxor ETF MSCI India saw outflows equivalent to 5-6%
of their total fund size in the month.
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