Goldman Sachs EM Weekly Fund Flows Monitor: Moderate Foreign Selling, Record GEM Mutual Fund Inflows
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
For the week ending February 20, 2026, Goldman Sachs reports moderate foreign institutional investor selling across emerging markets, led primarily by Korea, which experienced $0.7 billion in net outflows. Conversely, ASEAN and India recorded net inflows of $0.4 billion and $0.2 billion, respectively. Non-Asian emerging markets attracted $0.3 billion in net foreign buying, heavily supported by South Africa's $0.26 billion inflow.
Global equity funds saw a weekly net inflow of $35 billion, a moderation from the previous week's $46 billion. US funds led with $9.6 billion in net purchases, followed by Europe at $3 billion and Japan at $2.4 billion. Furthermore, Global Emerging Market (GEM) mutual funds extended their streak to 18 consecutive weeks of net inflows, adding $4.3 billion this week. Year-to-date, GEM fund inflows have reached $45 billion, representing the fastest annual buying pace over the past two decades.
At the hedge fund level, gross trading flows in Chinese equities surged, though net directional activity remains limited year-to-date. In contrast, Asia ex-China stands as the most net-bought region globally by hedge funds. This trend is driven by long purchases, with Japan, Korea, and Taiwan all securing significant inflows. Hedge funds are now overweight Asia by more than 10 percentage points versus the MSCI ACWI, marking a record high. Finally, the upcoming Hang Seng Index quarterly review in March 2026 is projected to generate nearly $8 billion in two-way passive fund flows, benefiting internet and capital goods sectors while potentially triggering outflows from banks and energy.