Investors Are Dumping Emerging Markets At An Accelerating Pace

The brutal financial asset sell-off in the Emerging Markets picked up this week.

And it’s all reflected in the fund flows reports.

“Emerging Markets debt-dedicated funds recorded net outflows of $2,013MM (0.84% AUM) for the week ending on August 28, 2013, reports EPFR,” said Morgan Stanley’s Robert Habib. “Outflows increased for the third consecutive week and were the highest since they peaked late in June at nearly $US6bn (2.2% of AUM). The total outflows since these commenced late in May now amount to $US22.4bn. In line with the large outflows, prices of EM-dedicated funds extended their negative trend and fell 0.72% during the week.”

“On a regional basis, investors decreased exposure from all EM regions, particularly from Asia-dedicated funds once more,” added Habib.

Here’s a geographic breakdown of the bond market bleeding:

And here’s a historical look:

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