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-168188-725-1,765-8,777Sovereign-398607-122-650-Mixed339-20179-75-Corporate-109-218-682-1,039-Global Mandate-72346-99-877-7,324Regional/Country-96-158-626-889-1,452ETF-260612-142-7674,041Non-ETF92-424-583-998-12,817ESG150-113-52-72-Local Currency567-170-488265-718Global Mandate293-9-823-1,134Regional/Country274-161-480242416o/w China2012-374-224-ETF1763704491,054-202Non-ETF391-539-937-789-516ESG20352132-Blended Currency31-260-338-515-1,110ESG45-18135147-Global26084-426-1,353-9,530Regional/Country170-326-1,124-662-1,068AxJ211-198-1,041-661-771LatAm23372-6-132CEEMEA-65-131-1565-166ETF-73982345329-3,832Non-ETF502-1,223-1,895-2,343-6,773Total429-241-1,550-2,015-10,604Fund Flows (US$mn) Source: EPFR, Morgan Stanley ResearchEM flows: EMDD inflows were at US$429m this week versus outflows of US$241m in the previous week.• Hard currency moved back to small outflows of US$168m versus inflows of US$188m in the previous week. This was a result of weaker sovereign fund flows, which fell from US$607m in inflows last week to US$398m in outflows this week. Balanced against this was that mixed sovereign/corporate fund flows improved notably from US$201m in outflows last week to US$339m in inflows this week. Global-mandated funds registered US$72m in outflows while regional/country funds saw US$96m in outflows. Non-ETF flows improved notably to US$92m in inflows versus US$424m in outflows in the prior week, but ETFs turned to outflows of US$260m versus inflows of US$612m last week.• Local currency flows continued improving at a faster pace with US$567m in inflows this week versus US$170m in outflows in the prior week. This was a result of both an improvement in global-mandated fund flows, which registered US$293m in inflows from US$9m in outflows a week ago, and an even larger improvement in regional/country fund flows, which turned to US$274m in inflows versus US$161m in outflows in the prior week. The entirety of the improvement was in non-ETF fund flows, which turned positive to US$391m in inflows versus US$539m in outflows in the prior week.• Overall, global-mandated funds flows improved to US$260m in inflows, while regional/country funds also turned to US$170m in inflows. AXJ flows continued recovering to US$211m in inflows versus US$198m in outflows in the prior week, LatAm registered inflows of US$23m ...
