Friday, August 19, 2011

BRIC Funds Bleed; Investors Super Skeptical

BRIC funds collectively have seen net outflows in every month since March 2010, according to data from fund tracker Thomson Reuters Lipper. Their combined assets have shrunk by a fourth to just over $28 billion from the record high of 2007. The cumulative net outflows under such funds since March 2010 has risen to $9.5 billion.

By comparison, funds investing in the Asia-Pacific outside Japan have seen inflows worth about $4 billion in the same period, reflecting investor preference for a broader investment theme to cut down on risk.

The fall from grace of the BRIC funds has been sparked by declining performance, policy tightening, capital controls in Brazil and a shift towards safety by investors.

"These kinds of funds were very trendy at launch, they remained trendy for a while and then the appetite of investors went down," said Francois Mouzay, head of fund development and services, Asia Pacific, for BNP Paribas Investment Partners... .

Read more about this at http://www.cnbc.com/id/44198859

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