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-1,102-217-1,697-3,084-8,701Sovereign-930-220-941-1,801-Mixed-77-74-14-227-Corporate-9476-345-1,057-Global Mandate-980-202-1,055-2,058-7,313Regional/Country-122-16-642-1,026-1,388ETF-646-105-781-1,5183,977Non-ETF-456-112-916-1,566-12,678ESG-130-167-259-369-Local Currency355280651900561Global Mandate7869315170-1,037Regional/Country2772113357301,598o/w China-59-13-41-296-ETF1961189291,368-420Non-ETF159162-278-468981ESG33-107955-Blended Currency10-642-972-1,147-1,643ESG65-599-507-387-Global-885-776-1,686-3,013-10,073Regional/Country148197-332-317296AxJ-25129-456-557468LatAm84615885-113CEEMEA8961-34155-58ETF-44713164-106-3,536Non-ETF-289-592-2,183-3,225-6,246Total-737-579-2,018-3,330-9,782Fund Flows (US$mn) Source: EPFR, Morgan Stanley ResearchEM flows: EMDD outflows were at US$737m this week versus outflows of US$579m in the previous week.• Hard currency saw outflows increase to US$1.1bn versus outflows of US$217m in the previous week. This uptick was led by sovereign funds, which went from US$220m in outflows last week to US$930m this week, and global mandated funds, which went from US$202m in outflows last week to US$980m this week. Corporate funds are now again registering outflows with US$94m this week and regional/country funds also saw more outflows at US$122m this week. Non-ETFs saw outflows of US$456m, versus US$112m in inflows last week; similarly, ETF outflows increased from US$105m in the prior week to US$646m this week.• Local currency inflows increased to US$355m versus US$280m in the prior week. Global-mandated fund inflows increased from US$69m to US$78m this week, with regional/country funds seeing US$277m in inflows versus US$211m in the prior week. ETFs saw US$196m in inflows while non-ETFs saw US$159m in inflows, down from US$162m last week.• Overall, global-mandated funds flows deteriorated further with US$885m in outflows, while regional/country fund flows were more stable at US$148m in inflows. AXJ registered outflows of US$25m, LatAm registered inflows of US$84m and CEEMEA saw inflows worth US$89m.• Year-to-date returns stand at -0.9% and -2.0% for hard currency and local currency, respectively.EM credit issuance: There was US$8.3bn in issuance this week, versus US$5.8bn last week. • There was US$3.1bn in sovereign supply this week, bringing YTD sovereign issuance to US$64.8bn, up ...
