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EM equity inflows hit 3-year high: BlackRock

EM equity inflows hit 3-year high: BlackRock

Tim Stewart

The past two months have seen the strongest inflows into emerging market exchange-traded products (ETPs) since January 2013, according to BlackRock.

The BlackRock Global ETP Landscape report for April 2016 found broad emerging market equity funds saw inflows of US$3.1 billion for the month.

This is off the back of inflows of US$6.8 billion in March 2016, which establishes the best run for the asset class since December 2012 through January 2013, said the report.

Emerging market equity ETPs have benefited from a "sluggish [US] dollar, stubbornly low interest rates and stabilising commodity prices".

April was also a good month for emerging market debt ETPs, which saw inflows of US$2.1 billion following a similarly strong showing in March.

"[Both April and March 2016] individually exceeded the total for all of 2015 and quickly brought year-to-date flows to nearly half the level from 2012," said BlackRock.

"Emerging market government bond ETP flows represent $3.5 billion, or nearly all, of the year-to-date total, as investors seek alternative sources of income with developed markets government yields at record low levels," said the report.

"The majority of 2016 emerging market debt flows have gone to US dollar denominated funds, though local-currency funds have also gathered $1.2 billion, more than double last year," said BlackRock.

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EM equity inflows hit 3-year high: BlackRock
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