It's mainly due to the performance of mainland Chinese equities.
I wouldn't be surprised if the institutions, such as pensions and endowments that have been plowing so much money into emerging-market funds, will see this pull back as an opportunity to plow more in. It doesn't feel like the pull back will continue for too long before investors will again rediscover strong emerging-market growth.
Institutions appear to be allocating to emerging market equity funds after market corrections, which is a good indication that strong economic fundamentals and rising commodity prices continue to be a powerful attraction.
The 27-week inflow streak into Japan equity funds ended this week as accounting irregularities at an Internet company and a systems failure on the Tokyo Stock Exchange shook investor confidence.
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