Offshore Capitalist

Emerging Funds Resume Record Inflows, Shrug Off Dubai

Dec. 11 (Bloomberg) — Emerging-market funds bounced back from the Dubai debt shock, heading for record annual inflows as investors took money out of U.S. equities and piled into Brazil, China, India and Russia.

Equity funds focused on developing nations received $2.3 billion more than was withdrawn in the week to Dec. 9, bringing 2009 inflows to $75.4 billion, Cambridge, Massachusetts-based research firm EPFR Global said in a statement. The previous record was $54 billion in 2007. Emerging-market bond funds took in $317 million, even amid concern that Dubai government-owned companies will delay debt payments.

The plunge in Middle Eastern stocks and bonds last month attracted Mark Mobius, who oversees more than $30 billion of developing-nation assets as chairman of Templeton Asset Management Ltd., and Pacific Investment Management Co., which runs the world’s biggest bond fund. Mobius said Dec. 2 he is buying “bombed out” Dubai develop Emaar Properties PJSC. Pimco’s Michael Gomez yesterday said he is scooping up bonds of Abu Dhabi and Qatar.

“Emerging-market equity funds combined bounced back from the blows administered by Dubai World’s debt problems in late November,” EPFR said.

via Emerging Funds Resume Record Inflows, Shrug Off Dubai (Update2) – Bloomberg.com.

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