Back like we never left: EM bond funds see inflows return, led by local currency

EM bond flows were +$930mn (+0.20% of weekly AUM, up from -$930mn); EM equity flows were +$107mn (+0.01% of weekly AUM, up from -$1.8bn). YTD flows into EM bonds and equities reached +$34.7bn and +$68.7bn, respectively. Within EM bond funds, hard currency fund inflows accelerated to +$27mn this week (from -$723mn), while local currency fund inflows substantially rose to +$903mn (from -$207mn). ETF inflows rose significantly to +$223mn (from -$415mn), while non-ETF inflows increased to +$707mn (from -$515mn). Within local currency, EM ex-China saw inflows of +$906mn while China-focused funds saw outflows of -$3mn. Within hard currency, AsiaXJ funds saw outflows of -$107mn while broad EM funds saw inflows of +$135mn. EM equity funds: overall inflows accelerated to +$107mn (from -$1.8bn);