An Emerging Flow of Funds

This is the 10th consecutive week of inflows into emerging market equities, totaling about $18.8 billion for the period, according to fund tracker EPFR Global.  The $3.5 billion for the week ending May 13, 2009 surpassed U.S. inflows of $2.6 billion.

Year-to-date total retail inflows into long-only emerging market equity funds are $17.7 billion. Total assets under management in long-only emerging market retail equity funds on April 1, 2009 were $329 billion versus $652 billion in April 2008.  

This is a very positive data point, but one question to ask is: has it all been priced?  We think not and point to the extraordinary outflow of funds that preceeded this move over the last 2.5 months.  The previous six months saw 70 percent of all funds that flowed into GEM between 2003 and June 2008 flow out.