Washington, D.C., October 27, 2014 - Portfolio flows to emerging markets slowed to a 2014 low of $1 billion in October, down from $10 billion in September, according to the latest' EM Portfolio Flows Tracker ' by the Institute of International Finance.

Portfolio equity flows for October saw a $9 billion outflow after $7 billion of inflows in September, while bond flows rose to $10 billion, up from $4 billion in September.

"EM portfolio flows ground to a halt in October," said Charles Collyns, chief economist at the IIF. "The sharp increase in global risk aversion in October took a heavy toll on equity flows, which fell to their lowest level since last year's taper tantrum. At the same time, weaker global growth prospects have led investors to anticipate an even more gradual Fed exit, which we estimate to have boosted bond inflows."

The IIF Tracker noted that market turbulence in the first half of October amplified a cool-off in investor sentiment towards emerging markets that had been underway for several months.

The Tracker also noted that only the Latin America region recorded positive net inflows, driven by strong inflows into the Mexican bond market.

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.