Hence, the large negative outflow from emerging market equity funds is unlikely a surprise to investors.
FORBES: Emerging Market Equity Flows Remain Positive, Despite Sell Trend
Inflows into emerging market equity funds were muted in the last week despite the rally.
But, within emerging market equity funds, pessimism about China is getting trumped by overall optimism on Asia.
Mr Gilbert said the level of fixed-income business that had left Aberdeen Asset Management had "slowed significantly" and the company continued to be successful in attracting new investment to global equity and emerging market equity funds.
On the equity side, compared to the benchmark MSCI Emerging Markets index, global emerging market equity funds were underweight, in order of less weighting, Brazil, China and Russia, and slightly overweight India up to June 11, according to EPFR Global and Barclays.
Emerging market funds and global equity funds also posted weekly inflow records as investors continued the rotation out of bonds and cash and towards equities, a trend that started in earnest in December.
Emerging market bond and equity funds continue to see large inflows thanks to QE3 at the Fed creating a reallocation environment from lower to higher yielding assets.
Instead, these investments would rely more heavily on active management--things like emerging market equity and debt funds, domestic high-yield bonds, small cap equities, real estate and private equity.
It made light bets in plain old stocks and bonds and went hell-for-leather into exotic and illiquid holdings: commodities, timberland, hedge funds, emerging-market equities and private equity partnerships.
To diversify, they go to investment companies who spread that risk out among equity fund managers, emerging market specialists, bond specialists and currency funds.
FORBES: The 'Secret Sauce' Of A Mutual Fund With A One-Track Mind
That's a nice way of saying that during recent years the Harvard Management Company, the university's investment subsidiary, diverted large portions of the university's endowment assets out of safe but poky low-yield securities (as of last June fixed-income investments accounted for only 16% of Harvard's portfolio) and into what this Forbes story describes as "exotic financial instruments": derivatives, hedge funds, private equity partnerships, commodities and emerging-market equities.
Emerging-market assets make up only 2.1% of all money invested in American equity mutual funds.
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