Workflow
EM Money Trail_Tariff fears keep EM under fire
Morgan Stanley·2024-12-03 14:08

Summary of J.P. Morgan Global Emerging Markets Equity Research Call Industry Overview - Emerging Markets (EM) Equity: The report discusses the ongoing trends in emerging markets, highlighting significant outflows and market dynamics. Key Points 1. EM Equity Outflows - EM equity outflows continued for another week, totaling -4.3billion∗∗,followingarecordoutflowof∗∗−4.3 billion**, following a record outflow of **-6.6 billion the previous week. This marks five consecutive weeks of redemptions, with a cumulative sell-off of -20.3billion∗∗[1][4][28].−Asiaex−Japanfundsaccountedforthelargestshareofoutflowsat∗∗−20.3 billion** [1][4][28]. - Asia ex-Japan funds accounted for the largest share of outflows at **-2.7 billion, down from -5.6billion∗∗thepriorweek[1][4].−GEMs(GlobalEmergingMarkets)fundsexperiencedredemptionsof∗∗−5.6 billion** the prior week [1][4]. - GEMs (Global Emerging Markets) funds experienced redemptions of **-1.5 billion [1][4]. - EMEA (Europe, the Middle East, and Africa) outflows widened to -116million∗∗,comparedto∗∗−116 million**, compared to **-75 million last week, while LatAm (Latin America) remained steady at -59million∗∗[1][4].2.RegionalFundFlows−∗∗India∗∗sawareboundwithinflowsof∗∗+59 million** [1][4]. 2. Regional Fund Flows - **India** saw a rebound with inflows of **+1.8 billion after eight weeks of outflows totaling -13.4billion∗∗[2].−∗∗Taiwan∗∗experiencedworsenedsell−offs,increasingto∗∗−13.4 billion** [2]. - **Taiwan** experienced worsened sell-offs, increasing to **-2.5 billion from -1.5billion∗∗[2].−∗∗Korea∗∗outflowsslowedto∗∗−1.5 billion** [2]. - **Korea** outflows slowed to **-534 million from -640million∗∗[2].−∗∗SouthAfrica∗∗redemptionsincreasedto∗∗−640 million** [2]. - **South Africa** redemptions increased to **-372 million from -109million∗∗,while∗∗Brazil∗∗sawminimaloutflowsof∗∗−109 million**, while **Brazil** saw minimal outflows of **-9 million [2]. 3. Performance of EM Ex-China - EM ex-China turned positive this week with inflows of +122million∗∗,recoveringfrom∗∗−122 million**, recovering from **-49 million [1][4]. - In October, China recorded strong inflows of +10.0billion∗∗,contrastingwithoutflowsfromMexico(∗∗−10.0 billion**, contrasting with outflows from Mexico (**-343 million) and Poland (-146million∗∗)[2][11].4.Year−to−Date(YTD)Flows−Year−to−date,EMequityflowsstandat∗∗−146 million**) [2][11]. 4. Year-to-Date (YTD) Flows - Year-to-date, EM equity flows stand at **-23.8 billion [1][4]. - EM ETFs (Exchange-Traded Funds) redemptions decelerated to -2.0billion∗∗from∗∗−2.0 billion** from **-4.2 billion, while non-ETFs continued to see significant sell-offs at -2.3billion∗∗[1][4].5.MarketDataandAUM−TotalEMequityAUM(AssetsUnderManagement)isreportedat∗∗2.3 billion** [1][4]. 5. Market Data and AUM - Total EM equity AUM (Assets Under Management) is reported at **1,655.2 billion [10]. - Developed Europe equity funds faced significant outflows of -3.6billion∗∗,whileUSequityfundssawinflowsof∗∗+3.6 billion**, while US equity funds saw inflows of **+36.1 billion [4][10]. 6. Analyst Insights - The report includes insights from various analysts, emphasizing the ongoing challenges and opportunities within the emerging markets landscape [3][9]. Additional Important Information - The report highlights the potential conflicts of interest due to J.P. Morgan's business relationships with covered companies, advising investors to consider this report as one of many factors in their investment decisions [7]. - The data presented is sourced from EPFR Global and MSCI, excluding onshore funds, which is crucial for understanding the context of the reported figures [12][17]. This summary encapsulates the critical insights and data from the J.P. Morgan Global Emerging Markets Equity Research call, providing a comprehensive overview of the current state of EM equities and regional fund flows.