Reuters -- Investors are starting to move back in to emerging stocks and bonds after a long hiatus, data from fund tracker EPFR
shows, but the economic slowdown gripping the developing world is likely to constrain market rallies.
data shows over $46 billion flowing to emerging stock and bond funds since January, after almost $90 billion last year.
According to EPFR
data, global emerging market funds have assets under management (AUMs) of $450 billion (28 per cent of which are passive ETFs) and emerging EMEA funds have AUMs of $45 billion (37 per cent of which are passive ETFs).
According to data from fund-tracking EPFR
Global, European equity funds have enjoyed net weekly inflows in the past 25 weeks in a row.
2) Fund flow data provided by EPFR
Global, based on public and proprietary sources.
African equity funds have attracted net new cash in 51 of the last year's 52 weeks, EPFR
Global have reported, underscoring the evolution of the continent's frontier markets as a serious investment play.
But flow data from EPFR
Global also suggested that enough money found its way into emerging markets equity funds to suggest that yield remains a real concern .
Risk aversion in the wake of Dubai's massive debt woes caused investors to slow their move into emerging market equity and riskier bond fund groups in the week ended December 1, EPFR
Data from EPFR
Global showed Asian ex-Japan stocks posted a second straight week of fund inflows in the week ending last Wednesday.
Brad Durham, of EPFR
Global, a US-based research firm, said the turbulence hitting Brazil and other developing economies "was due to a perfect storm of bad news".
aaa Inflows into Africa regional equity funds have totalled $247m in the first seven months of 2008, the daily reported, citing figures of EPFR
Global, a Boston-based company that tracks international fund flows.
Hedge fund monitor EPFR
says fund flows into emerging markets had been broadly positive this year but have now turned negative everywhere except the Middle East and Africa.