Emerging market bond funds suffered disproportionately in past month

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03/24/2020 | 10:56 am
Emerging market bond funds are performing poorly compared with their global peers as investors rush into the safety of cash and money markets to shield themselves from a further market erosion due to the cornavirus pandemic.

Refinitiv data showed emerging market bond funds have lost 16.7% of their market value on average over the past month, while the European and U.S. bond funds shed about 9% each.

(GRAPHIC: Global bond funds' returns - )

Global investors sold $4.5 billion worth of emerging market bond funds in the week ended March 18, compared with an inflow of $210 million in the prior week, according to recent data from Lipper.

(GRAPHIC: EM flows - )

Brazil's bond funds were among the top 5 worst performing global funds over the past month, the data showed.

(GRAPHIC: Worst performers - )

Brazil's Caixa FMP FGTS Carteira Livre Renda Fixa 49, Santander PB Negroocho Acoes FI and VIC Safari FICFI Multimercado Credito Privado IE have shed more than 40% each over the past month, the data showed.

Among the top global bond funds by asset size, PIMCO Income fund lost 12.78% over the past month, while Dodge & Cox Income fund dropped 7.26%.

(GRAPHIC: Worst performers among top funds by assets - )

(Reporting By Patturaja Murugaboopathy; Editing by Vidya Ranganathan and Raju Gopalakrishnan)

Thomson Reuters 2020
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