Citi’s latest Fun with Flows report highlights how fund redemptions have now spread from China and India into Brazil and Russia funds. All four BRICs nations recorded equity fund outflows for the week ending May 12th.
Citi’s Elaine Chu:
Although net outflows from all China funds last week were as big as the amount recorded in late January after the first RRR hike, new money taken in by A50 ETFs continued for the ninth week. In other BRIC markets, redemptions from India funds rose to the largest in 17 months, outflows from Russia funds were recorded for the first time since mid February, and Brazil fund outflows were the biggest of all, close to US$1bn in the last five weeks.
Asia ex-Japan fund outflows hit $1.3 billion. As shown below, recent de-risking has finally hit Asia.
This has been a huge reversal in fund flows as shown by the chart below. China went from average net inflows, to a sharp net outflow.
(Via Citi, Fun with flows, Elaine Chu, 17 May 2010)
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