Washington, D.C., September 29, 2014 - Portfolio inflows to emerging markets climbed to a moderate level in September after a sharp slowdown in August, according to the latest EM Portfolio Flows Tracker by the Institute of International Finance.

Emerging markets received $18 billion in September, up from the $12 billion in August (revised up by $3 billion). Portfolio equity inflows slowed marginally to $8 billion, while portfolio debt inflows picked up to $10 billion.

"Emerging market portfolio flows have remained subdued in September, after the sharp slowdown we saw in August," said Charles Collyns, chief economist at the IIF. "In addition, we've seen a correction in EM equity prices in recent weeks. Some upward shift in market expectations about the path for Fed policy rates seems to have contributed to investor caution."

Emerging market stock markets declined across the board in September. On average, equities declined 6 percent in September, after rising about 9 percent since the beginning of the year.

Additionally, bond issuance is tracking at a moderate $41 billion in September, while equity issuance jumped to $85 billion, mainly boosted by the Alibaba IPO.

The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. Within its membership IIF counts commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.