Emerging market stock funds see USD 1.64bn outflows

Investors pulled out USD 1.64 billion from emerging markets equity funds last week for the first time in two months.

During the third week of May, emerging market equity funds lost USD 1.64 billion accounting for a major portion of a total outflow of USD 7.07 billion in global stock funds, according to the data complied by the international fund tracking firm EPFR. This was the first time since third week of March that emerging market equity funds saw outflows on renewed concerns over Greek's debt and withdrawal of economic stimulus from the Federal Reserve on cards. "Fresh speculation that Greek debt will be restructured and the fact that the official end to the US Federal Reserve's QE2 programme which is now less than eight weeks away," the report noted. In contrast bond funds around the world took in a net USD 4.59 billion.