Prospect of Fed tapering prompts some capital flight

Investors in emerging market assets clearly remain concerned about the consequences of a tapering of the Fed’s asset purchases. EPFR Global data reveal that there were net ETF and mutual fund portfolio outflows from emerging market (EM) bonds in November for the six month running. There was also a small net outflow from EM equities for the first month in three. Taken together, the monthly outflow from EM bonds and equities combined in November was the third largest this year