Staff
Global investors are estimated to have sold US$40 billion worth of emerging market assets in the third quarter of 2015, according to the Institute of International Finance (IIF).
The retrenchment was about evenly divided between equities (US$19 billion) and debt (US$21 billion).
It’s the largest reversal since the fourth quarter of 2008—at the height of the global financial crisis—when emerging markets saw outflows to the tune of US$105 billion.
Read: Money managers worry about emerging markets
The IIF says dovish signals from the Fed after its September policy meeting gave a temporary boost to portfolio flows.
“While this turnaround has cushioned the outflows in September, it was only a shortlived rebound,” the IIF says.
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