Outflow from Russian equities, bonds through funds totals $270 mln in week - EPFR
MOSCOW. June 15 (Interfax) - Net capital outflow from Russia's stock and bond markets through funds, including all funds that invest in Russian equities and bonds, continued in the week June 7-13 and totaled $270 million, up from $170 million in the previous week, BCS Global Markets chief strategist Vyacheslav Smolyaninov, citing EPFR Global data, said in a report.
The net outflow from Russian equities through funds, including all funds that invest in Russian stocks, totaled $210 million in the week, compared to an outflow of $130 million in the previous week. Funds that invest only in Russian equities saw an outflow of $60 million, compared to an outflow of $70 million a week earlier.
The outflow from Russian bonds through funds, including all funds that invest in Russian bonds, amounted to $60 million in the week ending June 13, compared to an outflow of $40 million in the previous week.
There was an inflow from bond funds focused only on Russia of $10 million; inflow was also $10 million a week earlier.
Smolyaninov said that the data shows investors' current caution towards emerging markets. "Following a short-lived respite last week from funds investing in EM equities, another $1.3 billion was withdrawn, the third biggest outflow since the start of the year. Capital outflow from Russia was relatively minor; Turkey was a standout in the EMEA region with its highest inflow since 2010 at $138 million (all through ETF)," BCS Global Markets materials show
Investors in emerging markets bonds are maintaining a negative outlook, resulting in a $1.3 billion outflow from all EM funds investing in bonds. "Although Russia is far from the most vulnerable country in this regard, it will be difficult for Russian bonds to demonstrate strong growth if outflow from emerging markets as an asset class continues at this rate," Smolyaninov said in the report