Flows into emerging markets have increased over the past six months at the greatest rate since before the Asian financial crisis, but most of those funds have skipped Asia in favour of Latin America and Russia. But according to one EM fund manager, Asia could see its share of inflows should events in Brazil go wrong for investors.
Since the Asian financial crisis, emerging market investment has been a fringe business, but that changed markedly after the collapse of Enron's share price. Since then, fund managers report, flows have increased into emerging market debt as well as equities. Raphael Kassin, head of emerging markets fixed-income at ABN Amro Asset Management in London, currently manages $500...
