In recent years the BRIC countries - Brazil, Russia, India and China - have profited from investors scared off from the US and EU recession. That party now appears to be at an end. As the recession starts to take a closer look at these countries, the greenback may end up being the safe investment to weather the storm once again. Interesting times.
Indeed, assets in BRIC funds surged 1,600-fold from a low base to about $38 billion between 2003 and 2007 as shares in the rapidly growing BRIC economies produced almost a 600 percent return.
The tide, however, has turned.
BRIC funds collectively have seen net outflows in every month since March 2010, according to data from fund tracker Thomson Reuters Lipper.
Their combined assets have shrunk by a fourth to just over $28 billion from the record high of 2007. The cumulative net outflows under such funds since March 2010 has risen to $9.5 billion.
