Investors ditch Asia
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Having started the year as the eighth top net selling sector, it would seem investors’ love affair for Asian funds has diminished going by the latest Investment Management Association (IMA) statistics.
In May the sector was the worst selling, having seen outflows of £127m for the month. In January fund flows into the sector stood at £131m, dropping to £97m in February and £89m in March. Then in April positive fund flows turned to redemptions with £4.1m coming out of the sector, and today it was announced in May that level had jumped to £131m.
May’s statistics also showed a notable decline in sales of global emerging market funds. Having hit net sales of £132.7m in March and £122.1m in April, sales dropped to just £10.8m in May. (article continues below)
It could be argued that the decline in popularity is a defensive play. However with absolute return and global growth taking the top two spots in sales rankings, it would seem investors are not feeling particularly risk-averse.
