Emerging markets funds shun Brazil, South Africa
Global emerging markets equity funds have cut average weightings to Brazil and South Africa for the fourth straight quarter, according to the latest allocations data from fund research firm Lipper.
You can see a full interactive graphic of the allocations data here or by clicking on the snapshot below.
The average allocation to Brazil has fallen by 1.75 percentage points over the past year to stand at 11.6 percent of portfolios by the end of the April-June 2013 quarter. South Africa’s average weighting has fallen to 6.0 percent from 7.3 percent in the second quarter of 2012.
The data comes from about 400 GEM funds for which Lipper has recent allocations data. At the last count they held combined assets of $175 billion. GEM funds offer a useful gauge of investor sentiment around emerging markets as they can generally allocate money across the sector.
China and India have seen the sharpest increase in average allocations during the year in percentage points terms, even as fears of a China slowdown have gathered momentum and stocks .MSCICN have barely eked out a gain. (Full Story)
Malaysia emerges as the top pick in terms of pure percentage gains. The average allocation here grew by more than 17 percent over the year to 3 percent of portfolios, compared to 2.6 percent in Q2 2012. Most of that increase came in the second quarter of this year.
(Graphic by Vincent Flasseur)