Fund sales hit 42-month high

Emerging market fund sales have hit a 42-month high as almost €9 billion was invested in emerging markets mutual funds in July.

This is the highest level since January 2013, when €10.7 billion was invested into emerging market funds before a dramatic tapering by US investors in the following months.

“People are desperately seeking yields and emerging market bonds are still relatively attractive. There is also the fact that [fund] flows follow performance. Emerging markets are outperforming global markets. It is really remarkable," said Ali Masarwah, editorial director for Europe, the Middle East, and Africa at Morningstar.

The MSCI Emerging Market Index is up more than 16 per cent in 2016, compared to the 20 per cent loss in the previous year.

Read more at the Financial Times.