Flows into EPFR-tracked Emerging Markets Equity Funds during the third week of January climbed to their highest level since mid-1Q21 as investors positioned themselves for China’s much anticipated economic rebound and, the anti-inflation rhetoric of the Federal Reserve and European Central Bank (ECB) notwithstanding, an early end to the current interest rate cycles in the US and Europe. Investors also steered $2.5 billion – a 101-week high – into Emerging Markets Bond Funds.
Kirsten Longbottom
Kirsten Longbottom joined EPFR as a Financial Publication Editor in July 2021 and her responsibilities have since expanded to encompass marketing and sales support initiatives.
Kirsten’s main role is in editing EPFR’s publications, working closely with the research and quant team to produce relevant, frequent content, as well as monitoring and updating the company’s social media channels. She is focused on growing our social media presence by developing new ways to visualize EPFR data and creating more video content. She supports the sales teams’ client retention activities and corresponds with journalists or news sources, providing data and insight upon request. Each week, Kirsten writes the Sector Funds section for the Weekly Global Navigator and has started to contribute to various other EPFR publications.
Since September 2021, Kirsten has been the host of the EPFR Exchange Podcast, a weekly conversation with Cameron Brandt on trends in the data we track and how those trends relate to the global financial landscape. Kirsten has worked towards growing our podcast presence by creating a partnership podcast series where we invite guest speakers to share their unique perspectives on major market topics and continuing special focus episodes which provide an overview of EPFR products.
In May of 2020, Kirsten graduated with Honors from Westfield State University, and received a BA in Mathematics, BA in Economics and minored in Fine Arts. In her free time, she enjoys traveling to new places, yoga and painting.
Emerging markets funds catch a wave in mid-January
Flows into EPFR-tracked Emerging Markets Equity Funds during the third week of January climbed to their highest level since mid-1Q21 as investors positioned themselves for China’s much anticipated economic rebound and, the anti-inflation rhetoric of the Federal Reserve and European Central Bank (ECB) notwithstanding, an early end to the current interest rate cycles in the US and Europe. Investors also steered $2.5 billion – a 101-week high – into Emerging Markets Bond Funds.
Bond Funds buoyed by lower inflation
Evidence that inflation is falling and global growth is stalling gave EPFR-tracked Bond Funds a shot in the arm during the first full week of January. Ahead of December’s CPI number, which showed US inflation grew at a 13-month low of 6.45% in the final month of 2022, investors committed over $17 billion to all Bond Funds.
2022: A tale of active versus passive
The final week of 2022 saw EPFR-tracked Bond Funds post consecutive weekly outflows for the first time since mid-October, capping a year when the overall group smashed its previous outflow record as central banks scrambled to contain inflation running at multi-decade highs.
Behind the headline number, however, was a marked shift from active to passive management.
Flow history repeats itself as the year winds down
A final look to EPFR-tracked equity funds in December 2022, with alternative, balanced, bond and money market funds experiencing significant redemptions as investors grapple with a highly uncertain outlook for the first half of next year.
More outflows than inflows as Fed hikes again
Overall, the second week of December 2022 saw all Equity Funds record a collective inflow of $17.9 billion while Bond Funds absorbed $2.3 billion.
Mixed signals for emerging markets
Despite China’s first steps away from the zero-Covid policies that have sapped its economy and some optimistic forecasts for 2023, investors tapped EPFR-tracked Emerging Markets Equity Funds for $2.4 billion – a 13-week high outflow – in early December 2022.
EPFR Exchange Podcast, special focus: iMoneyNet on money market funds
iMoneyNet, a part of EPFR, Financial Intelligence provides extensive, historical data and insight, tracking $4.5 trillion in US Money Market Fund assets and $1 trillion in Offshore assets that date back to 1975.
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