EM Portfolio Flows Remain Moderate in March

March 26, 2015

Washington, D.C., March 26, 2015 - Portfolio flows to emerging markets continued at a below-trend pace of $16 billion in March, nearly unchanged from the prior month, according to the latest EM Portfolio Flows Tracker by the Institute of International Finance.

"Portfolio flows have responded strongly to shifts in the outlook for Fed tightening later this year," said Charles Collyns, chief economist at the IIF. "After weak inflows in the first few weeks of March, emerging markets have benefitted from dovish signals by the Fed following the March FOMC meeting."

The IIF noted that equity inflows rose to $10 billion, while debt inflows declined to $6 billion, consistent with a rise in EM bond spreads through mid-March. The IIF reported that on a regional basis, EM Asia was the largest recipient of inflows, followed by Latin America. Flows to EM Europe turned positive after 3 months of outflows.

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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
 

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