>CHOPPY EM OUTFLOWS (MERRILL LYNCH)

Flows choppy, trading rule neutral

EM equity funds saw around $0.5bn of redemptions in week to July 8th

Choppy flows in recent weeks as market has paused, follows huge Q2 inflows.

Prior 3 weeks' flow pattern: +$1bn, -$2bn, +$1bn (chart 1)

Most of redemptions due to ETF selling this week but small outflows also seen by
LO mutual funds

By region: outflows from Asia, LatAm. Inflows into Global EM funds. EMEA flat

By country: outflows from Brazil (3rd largest on record), China. Inflows into India

YTD EM has seen $29bn of inflow. Main beneficiaries have been GEM funds and
Asia. EMEA funds have actually seen outflows this year (table 1)

Fund flow trading rule remains in neutral territory as flows over past 4w = -0.1% of
AUM (chart 2 in report)

To see full report: EM OUTFLOWS