Emerging market inflows slip, August holds above $20 billion: IIF

September 1, 2016 3:28 PM EDT

A Chinese investor monitors share prices at a securities company in Shanghai November 12, 2003. REUTERS/Claro Cortes IV/File Photo


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By Dion Rabouin

NEW YORK (Reuters) - Emerging markets portfolio inflows fell to just under $25 billion in August from nearly $30 billion in July, the Institute of International Finance said on Thursday.

While net inflows to emerging markets were lower than last month, it was the third consecutive month in which net portfolio flows to emerging markets were more than $20 billion.

The IIF also revised its estimates for inflows to emerging markets for both June and July. June was revised up to $21.6 billion from $13.3 billion, and July was revised higher to $29.8 billion from $24.8 billion.

"Our latest estimates indicate that the recent rebound in EM portfolio flows since June was driven by a combination of domestic improvements and a recovery in global risk appetite," the IIF said in a statement. "Both developments seem to have been supported by better signals on global growth."

Emerging market debt inflows for August increased from July, with $13.3 billion this month compared to July's upwardly revised $11.2 billion. Equity market inflows fell to $11.3 billion from $18.6 billion in July, according to the IIF's latest data.

Overall, inflows to emerging markets totaled $24.6 billion in August.

Regionally, emerging Asia attracted the lion's share of the flows, with $17.1 billion, followed by emerging Europe with inflows of $3.6 billion. Emerging European market assets had seen modest outflows last month.

Emerging markets net inflows reached the highest level of representation in global mutual funds and ETFs in more than a year during the three-week period ending Aug. 17, IIF reported last week. Net inflows to emerging markets assets outpace net inflows to developed markets in investors' portfolios during that timeframe.

(Reporting by Dion Rabouin; Editing by Alan Crosby)



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