Emerging market fund inflows slowing, says Merrill Lynch

Flows into emerging market equity funds are suffering a slowdown, according to Merrill Lynch. In ...

Flows into emerging market equity funds are suffering a slowdown, according to Merrill Lynch.

In the week to 17 June, emerging market fund inflows totalled $1.2bn, the lowest in eight weeks, with long-only funds accounting for all positive flows.

ETFs reported their first outflows since 4 March, prior to the market rally, while China funds saw their first weekly outflow since 24 March.

However, flows into India and Brazil funds remained steady.

"Emerging markets have not peaked for the year, but technical, valuation and sentiment factors present an argument for the correction in absolute and relative terms continuing in coming weeks," says Merrill Lynch chief global equity strategist Michael Hartnett.