EM Money Trail: Active funds back in force; tech sell-off worsens

EM equity fund inflows accelerated notably to +$3.5bn from +$1.6bn last week. Although passive funds (+$2.0bn, +$1.6bn last week) dominated total flows, active funds also posted a remarkable pickup in subscriptions at +$1.5bn (highest weekly inflows since February) after turning marginally positive last week (+$57mn). Among regional funds, GEMs posted strong inflows at +$3.6bn, of which a major chunk (+$2.0bn) was via the active route. Asia ex-Japan flows stayed positive for the fourth week with small inflows of +$130mn. EMEA also saw small inflows (+$26mn). EM ex-China funds extended positive flows streak to the tenth week (+$137mn this week, +$3.4bn total). The only negative print was in LatAm, though outflows eased at the margin (-$250mn, -$849mn last week). YTD, EM equity funds are at +$79.1bn (passive: +$101.6bn; active: -$22.5bn). Market-level flows: the exodus from Tech exacerbated this week, with outflows in Taiwan worsening to -$16.1bn, the highest ever weekly sell-off in hist