M UpdateEM Fixed Income Flows Update | Global Where Supply Meets DemandMorgan Stanley & Co. LLCSimon WaeverStrategist Simon.Waever@morganstanley.com +1 212 296-8101 Morgan Stanley & Co. International plc+James K LordStrategist James.Lord@morganstanley.com +44 20 7677-3254 Pascal N BodeStrategist Pascal.Bode@morganstanley.com +44 20 7425-3282 Morgan Stanley & Co. LLCEmma C CerdaStrategist Emma.Cerda@morganstanley.com +1 212 761-2344 Morgan Stanley & Co. International plc+Neville Z MandimikaStrategist Neville.Mandimika@morganstanley.com +44 20 7425-2509 Exhibit 2: EM debt-dedicated flowsCurrent WeekLast WeekLast 4wYTDYTD ∆'24 vs '23Hard Currency-217-168-595-1,982-8,498Sovereign-220-398-202-870-Mixed-74339105-149-Corporate76-109-498-963-Global Mandate-202-72-75-1,078-7,040Regional/Country-16-96-521-904-1,458ETF-105-260-135-8723,878Non-ETF-11292-460-1,110-12,376ESG-167150-109-239-Local Currency280567296545-251Global Mandate6929323792-1,101Regional/Country21127458453851o/w China-1320-147-237-ETF1181767331,172-51Non-ETF162391-437-627-200ESG-10201322-Blended Currency-64231-982-1,157-1,713ESG-59945-500-452-Global-776260-801-2,129-9,922Regional/Country197170-480-465-534AxJ129211-431-532-440LatAm623741-74CEEMEA61-65-12366-20ETF13-73611341-3,820Non-ETF-592502-1,893-2,935-6,642Total-579429-1,282-2,594-10,462Fund Flows (US$mn) Source: EPFR, Morgan Stanley ResearchEM flows: EMDD outflows were at US$579m this week versus inflows of US$429m in the previous week.• Hard currency saw outflows increase slightly to US$217m versus outflows of US$168m in the previous week. Sovereign and corporate fund flows improved somewhat but overall outflows nonetheless increased due to a deterioration in flows out of mixed sovereign/corporate fund flows, which turned from US$339m in inflows last week to US$74m in outflows this week. Global-mandated funds registered US$202m in outflows while regional/country funds saw US$16m in outflows. Non-ETFs turned back to smaller outflows of US$112m, versus US$92m in inflows last week, while ETF flows improved from US$260m in outflows in the prior week to US$105m in outflows this week.• Local currency inflows dropped to US$280m versus US$567m in the prior week. Global-mandated fund inflows fell from US$293m to US$69m this week, but the softening in flows was less in regional/country funds, which saw US$211m in inflows versus US$274m in the prior week. ETFs saw US$118m in inflows while non-ETFs saw US$162m in inflows, down from US$391m last week.• Overall, global-mandated funds flows deteriorated to US$776m in outflows, while regional/country fund flows were more stable at US$197m in inflows. AXJ inflows were at US$129m, LatAm registered inflows of US$6m and CEEMEA saw inflows worth US$61m.• Year-to-date returns stand at -0.9% and -2.3% for hard currency and local currency, respectively.EM credit issuance: There was US$5.8bn in issuance this week, versus US$22.0bn last week. • There was US$5.8bn in sovereign supply this week, bringing...
