Emerging Markets bond funds received moderate inflows, with flows going into EM hard-currency (HC) bond funds, while EM local-currency (LC) bond funds witnessed moderate outflows. Inflows continued to be driven by institutional investors, with retail investors pulling out funds from both EM LC and EM HC funds. EM equity funds received moderate inflows. Asia-domiciled equity funds also continued to receive inflows, led by Hong Kong, India and China-domiciled funds Our EM HC fund beta metric turned down sharply and went below 1, indicating that bond funds are reducing risk, perhaps an early indication of profit taking after a strong run-up in EM bonds over the last two months.“Our EM momentum indicator, which uses the 18-day moving average of the JPMorgan EMBIG Diversified Index, has remained in ‘long’ territory since 20 March”, Says Standard Chartered
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