18 Dec 2014

Long period of monetary easing

There was some interesting news on fund flows. Asia ex-Japan funds increased their India weightings by 2.1% to 13.5% over twelve months to end-October and Global Emerging Markets funds increased their weightings by 2.6% to 11.6% over the same period.  There have been substantial redemptions in funds benchmarked against the MSCI Emerging Markets Index, including $1bn in the last month alone. This would tend to confirm that the smart money has been positioning in India for the apparently inevitable start of a long period of monetary easing. The return prospects for Indian equities in 2015 seem assured.

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