In a reversal of the trend seen in October, almost all the US, global and emerging market funds have seen near-record inflows in November.
Asia (except Japan) equity funds also received substantial new money from investors. Country funds, focused on China, Taiwan and India have received about half of these weekly inflows.
According to Emerging Portfolio Fund Research, a Boston-based fund tracking service, equity funds have raked in over $6 billion in net inflows so far in November.
The research firm attributes these inflows to the post-US election optimism, lower oil prices and a "rush of funds into non-dollar denominated assets, on weakening US currency that has come as a boon to global and emerging markets equity funds."
For the week-ended November 17, 2004, global and international equity funds tracked by EPFR received almost $825.2 million in fresh investments, a tad lower to the previous week's $962.8 million -- the largest inflow of funds in a week, since September 2003.
These funds have taken in an astonishing $14.5 billion of net inflows so far this year, more than three times last year's $4 billion of net investor contributions received.
Flows have also been positive in 20 of the last 22 weeks. The Asia (ex-Japan) equity funds took in $225.8 million for the week ended November 17, compared with the previous week's $327.6 million - the largest inflow in any single week since early March.
According to EPFR "dedicated emerging market equity funds enjoyed their second straight solid week of inflows, taking in a net $743.5 million during the week and returning them to net positive inflows year to date."
In the previous week, these funds took in $825.6 million, the fifth-best weekly total this year. Flows were strong for the second straight week into the diversified Global Emerging Market equity funds, which received $410.4 million during the week ending November 17 after the previous week's $494 million of inflows.
The biggest beneficiary, however, was the passively managed iShares MSCI Emerging Markets Index Fund, which by itself attracted $219 million of net inflows for the week.
Equity funds from Latin America, Emerging Europe, Middle East and Africa also received healthy inflows last week.
EMEA funds have now absorbed $2.01 billion of net inflows from investors in 2004, more than double the $846.7 million received in all of 2003.
US Equity Funds took in a net $574 million from investors during the week making it the third consecutive week of inflows.
Over the last four weeks, these funds have returned 7.2 per cent and have received $2 billion of inflows that accounts for about all of their year to date total inflows.
Japan equity funds and developed Europe equity funds have both received three straight weeks of net inflows.
The decline of the dollar against the euro to an all-time low has encouraged investors to plow $714 million over the last three weeks into the Europe funds to minimise their exposure to the dollar.
Meanwhile, Japan funds have taken in $282 million of fresh money from investors over the past three weeks, surpassing $9 billion in total net inflows into these funds year to date.
Inflows have now added about 55 per cent to the total net assets of these funds this year. Japan funds, tracked weekly by EPFR, have grown in assets from $16.3 billion at the start of 2004 to $29.2 billion at present.
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