Capital Flows

Emerging Markets getting bubbly? - the snap back in the dollar can be very violent on equities and see a rebalancing of assets to the west particularly will US treasuries benefit? or are treasuries just as inflated or can they go higher? where the capital gonna be? lots of questions to be answered…


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Flows Into Emerging Market Equity Funds Hit 33-month High
By Josh Lipton
October 8, 2010 01:08 PM
EMERGING BUBBLES

Investors stuffed $6 billion into Emerging Markets Equity Funds during the week ended October 6, according to EPFR Global.

The Cambridge, Massachusetts-based research firm said that these funds had their best week since late 2007, and their second best week on record.

The commodity-producing countries and regions attracted the strongest interest, say EPFR analysts, as investors sought protection from the latest bout of dollar weakness.

Among the sub-fund groups, Africa Regional Funds had their second-best week on record; flows into South Africa Equity Funds climbed to their highest level since early 4Q07; and the $129 million absorbed by Russia Equity Funds during the week ending October 6 was the most in over five months.

Interest in Latin America re-centered on Brazil with a vengeance in early October as flows into Brazil Equity Funds climbed to a 156-week high.

Additionally, Emerging Markets Bond Funds took in over $1 billion for the third consecutive week. Year-to-date flows into Commodity Sector Funds moved within striking distance of the $19 billion mark.

Emerging markets have gone vertical, with the iShares MSCI Emerging Markets Index Fund (EEM) up 10% in just the past four weeks. And why not? It’s where all the growth is: the IMF forecasts growth in 2011 of 2.2% in the US; 6.4% for the emerging markets.

We explored the melt up in emerging markets in greater detail earlier this week.
POSITION: No positions in stocks mentioned.
TAGS: EMERGING MARKETS, CAPITAL FLOWS, STOCK FUNDS, BONDS FUNDS
TICKERS: NYSE:SPY, NASDAQ:QQQQ, NYSE:EEM, NASDAQ:EWJ, NASDAQ:EWM

Wheres all the cash going? --- EM funds??


http://www.google.com/hostednews/ap/article/ALeqM5ip_5weIxJIjJKRdKYEmkQcDAltyAD9IN3T000?docId=D9IN3T000

Money fund assets fell to $2.805T in latest week
By The Associated Press (AP) – 3 days ago
NEW YORK — Total money market mutual fund assets fell $500 million to $2.805 trillion for the week, the Investment Company Institute said Thursday.
Assets of the nation's retail money market mutual funds fell $190 million in the latest week to $952.97 billion. Assets of taxable money market funds in the retail category decreased by $1.42 billion to $749 billion for the week ended Wednesday, the Washington-based mutual fund trade group said. Retail tax-exempt fund assets rose $1.22 billion to $203.97 billion.
Assets of institutional money market funds fell $310 billion to $1.852 trillion for the same period. Among institutional funds, taxable money market fund assets increased by $610 million to $1.726 trillion; assets of institutional tax-exempt funds fell $930 million to $125.56 billion.
The seven-day average yield on taxable money market mutual funds in the week ended Tuesday remained at 0.04 percent for the 16th week in a row, said Money Fund Report, a service of iMoneyNet Inc. in Westboro, Mass. The 30-day average yield was also flat at 0.04 percent, according to Money Fund Report.
The seven-day and 30-day compounded yields were both unchanged at 0.04 percent, Money Fund Report said. The average maturity of the portfolios held by money funds remained at 44 days.
The online service Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from the previous week at 0.19 percent.
The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percentage yield available on interest-bearing checking accounts also remained flat at 0.11 percent.
Bankrate.com said the annual percentage yield on six-month certificates of deposit was 0.32 percent, down from 0.33 the previous week. Yields on one-year CDs fell to 0.56 percent from 0.57 percent the previous week; dropped to 0.81 percent from 0.84 percent on 2 1/2 year CDs; and fell to 1.66 percent from 1.68 percent on five-year CDs.
Copyright © 2010 The Associated Press. All rights reserved.