March 24, 2020 / 9:58 AM / 2 months ago

Emerging market bond funds suffered disproportionately in past month

(Reuters) - Emerging market bond funds are performing poorly compared with their global peers as investors rush into the safety of cash and money markets to shield themselves from a further market erosion due to the cornavirus pandemic.

FILE PHOTO: People stand next an electronic display at B3 Brazilian Stock Exchange after an automatic circuit breaker was triggered this morning, in Sao Paulo, Brazil, March 16, 2020 REUTERS/Rahel Patrasso

Refinitiv data showed emerging market bond funds have lost 16.7% of their market value on average over the past month, while the European and U.S. bond funds shed about 9% each.

(Graphic: Global bond funds' returns, here)

Global investors sold $4.5 billion worth of emerging market bond funds in the week ended March 18, compared with an inflow of $210 million in the prior week, according to recent data from Lipper.

(Graphic: EM flows, here)

Brazil’s bond funds were among the top 5 worst performing global funds over the past month, the data showed.

(Graphic: Worst performers, here)

Brazil’s Caixa FMP FGTS Carteira Livre Renda Fixa 49 LP68018635, Santander PB Negroocho Acoes FI LP68579992 and VIC Safari FICFI Multimercado Credito Privado IELP68534155 have shed more than 40% each over the past month, the data showed.

Among the top global bond funds by asset size, PIMCO Income fund LP40114576 lost 12.78% over the past month, while Dodge & Cox Income fund LP40005160 dropped 7.26%.

(Graphic: Worst performers among top funds by assets, here)

Reporting By Patturaja Murugaboopathy; Editing by Vidya Ranganathan and Raju Gopalakrishnan

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