Weekly Fund Flow Tracker Follow the money… :Macquarie Research,

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Weekly Fund Flow Tracker
Follow the money…
Local exchange data: Net-buying continued but pace
slowed down; Japan joined the flock
 Foreign net-buying continued in Asia ex-Japan. During the week ending
Wednesday, October 19, aggregate foreign net-buying in the six Asia ex-
Japan markets where data is available (i.e. Korea, Taiwan, India, Thailand,
Indonesia and the Philippines) was US$1.5bn, vs last week’s US$2.2bn. All
markets saw net-buying during the week but on a smaller scale compared to
the week before. In North Asia, weekly net-buying in Taiwan declined from
US$758m to US$480m and in Korea also dropped, from US$663 to US$500m.
 Appetite for TIP consistent; the Philippine saw net-buying after 5-week’s
outflow. The TIP markets (Thailand, Indonesia and Philippines) combined
recorded US$393m foreign net-buying vs previous week’s US$415m.
Thailand experienced a mild pullback in foreign net-purchasing (US$233m vs
US$248m previously); so did Indonesia (US$126m vs US$178m). The
Philippines finally followed the regional trend and recorded foreign net-buying
of US$34m vs net-selling of US$11m previously. Separately, foreign netbuying
in India came in at US$174m vs US$393m the week before.
 Japan finally saw net-buying by foreign investors. Data for Japan comes
with a lag but for the week ending Friday, October 14, Japan recorded foreign
net-buying of US$821m for the first time after 11 weeks of relentless selling.
 Record net-selling in Pakistan dragged the frontier markets behind. Both
Vietnam and Sri Lanka markets returned to foreign net-selling last week at
US$-3.0m and US$-2.9m, respectively. Foreign net-selling in Pakistan came
in at US$-65.8, the record high since May 2008, pushing YTD net-selling to
-1.8% of total market cap.
Fund subscriptions data: Favour GEM and regional funds
 Net-subscription of GEM ramped up quickly. Weekly net-subscriptions for
Global Emerging Market funds were US$1.3bn, which was the highest since
May 2011.
 Emerging Asia: regional funds outperformed country-dedicated funds.
The pan-Asia ex-Japan regional funds received US$135m net-subscriptions
after net-redemptions totalling US$1.3bn during the previous 4 weeks.
However, HK/China-dedicated funds saw a negative reversal last week with
US$-76m of net-redemption compared to US$292m of net-subscriptions the
week prior. All other single-country funds except for Malaysia received netredemptions
last week. Net-redemptions from Korea-, Taiwan-, Singaporededicated
funds slightly intensified last week.
 Developed Asia: not practically good but not too bad either. Last week,
Japan-dedicated funds continued to receive net-subscriptions of US$14m vs
US$37m previously. On the other hand, broader Asia-Pacific funds (which
combine Australia, New Zealand and Japan with emerging Asia) saw eased
net-redemptions last week.