Equity funds may face testing times next year, says EPFR

SYDNEY: Emerging-market equity fund inflows slowed in the week ending Dec 16, with 2010 poised to be a more "testing year" amid waning stimulus measures worldwide, according to EPFR Global, a Cambridge, MA-based advisor to financial institutions around the world.

Net inflows of $571.4 million added to more than $75 billion in developing-nation equity funds this year, set for a record, EPFR said in a statement. Funds investing in global emerging markets, Asia excluding Japan, Latin American and commodity stocks as well as the US, global and high-yield bonds may all set new highs this year, according to the statement.

The MSCI Emerging Markets Index slipped for a fourth day, falling 0.5 percent to 950.21 in New York on Friday. The gauge has rallied 67 percent this year, rebounding from last year's record 54 percent slump. Developing nations made up 12 of the best-performing stock indexes this year as stimulus measures from China to Brazil helped bolster a recovery in economic growth.