Asia/EM Equity Flows: Inflows of $3.3bn, record for 2010: Morgan Stanley

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Asia/EM Equity Flows: Inflows of $3.3bn; 23/23 weeks of inflows, record for 2010

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Dedicated EM equity funds* reported inflows of $3.3bn for the week ended November 3, 2010 ($2.7bn last week). This is 0.5% of the total funds under management. EM funds reported positive flows for the 23rd consecutive week, matching the record set in June 18, 2003, to November 19, 2003. EM funds have received cumulative inflows of $59bn in the last 23 weeks.


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Within EM, GEM funds reported an inflow of $2.23bn( 69% of the total inflows). YTD flows to GEM funds have reached $53bn, the highest ever received by GEM funds. Asian funds reported an inflow of $0.69bn, 21% of the total inflows received by EM funds. Flows moderated a bit in EMEA and LatAm funds from their earlier levels. YTD flows to dedicated EM funds have reached $75bn, 11% below the 2009 level. Total assets under management tracked by EPFR in EM-dedicated funds (on a weekly basis) have reached $704bn for the current week, the highest level ever (since the time dataset is available). ETF-type funds accounted for 24% of the inflows this week. (* Fund Flow Database – see slide no. 27 for details)
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Within EM, at the country level** China ($0.63bn), Brazil ($0.50bn), Korea ($0.32bn), India ($0.28bn) and Russia ($0.23bn) received the largest inflows. YTD flows to China, Brazil, Korea, Russia and India have reached $13.5bn, $9.03bn, $7.96bn, $5.96bn and $5.68bn, respectively. Cumulatively, China (20.3%), Brazil (13.6%), Korea (12.0%), Russia (9.0%) and India (8.6%) accounts for 64% of the total inflows received within the EM funds YTD.