EM Weekly Fund Flows Monitor Foreign inflows of US$8bn w w led by Korea Taiwan

Portfolio Strategy Research 14 August 2026 | 5:26PM BST

Foreign inflows of US$8bn w/w led by Korea/Taiwan; first weekly inflow after 7 weeks; MFs raised exposure in Korea semis in July; India Domestic flows moderated in July; MSCI rebalancing impact

Foreign (FII) flows / positioning EM funds are most OW Brazil/Mexico, and most UW Sunil Koul | n EM Asia ex-China markets saw FII inflows of US$9.6bn Taiwan. Over the past month, EM funds have raised Goldman Sachs International

w/w, driven by Taiwan (+US$5bn) and Korea (+US$4bn). exposure the most in Korea, and trimmed exposure in Timothy Moe, CFA | Non-Asia EMs saw significant selling of ~US$1.2bn w/w, China and India. Sectorally, funds are most OW China Goldman Sachs (Singapore) Pte

led by Brazil (-US$1.2bn). Industrials, while most UW Taiwan Hardware/Semis and Alvin So, CFA | China Banks. In July, fund managers rotated back into Goldman Sachs (Asia) L.L.C.

Korea Tech H/W & Semis, while further cutting Taiwan Tarun Lalwani, CFA HK/China Connect, Domestic retail flows | Tech H/W & Semis exposure. Goldman Sachs India SPL n Southbound saw inflows of US$11mn w/w (Ytd US$48bn). Taiwan (-US$5.9bn) and Korea (-US$3.8bn) n MSCI Index Review and Flow Implications: We expect Si Fu, Ph.D. | saw retail selling this week. Ytd, Asian markets have seen the upcoming MSCI index rebalancing (effective 8/31 Goldman Sachs (Asia) L.L.C.

US$67bn retail inflows. close) could trigger over US$35bn/US$24bn in gross Kinger Lau, CFA | two-way flows across APAC/GEM markets for the core Goldman Sachs (Asia) L.L.C.

indices. Within EM, India, Taiwan, China and UAE could John Kwon Global Equity mutual fund flows see the largest passive inflows, while Korea, Malaysia, | Goldman Sachs (Singapore) Pte n Equity funds globally saw inflows of US$16bn w/w (vs. Indonesia, Saudi Arabia and Mexico are expected to see US$33bn inflow last week). In DM, US funds saw net Amorita Goel, CFA the largest outflows. Sectorally, Tech Hardware & Semis | Goldman Sachs (Singapore) Pte buying of US$15.6bn. Europe (+US$1.2bn) and Japan and Software could see the largest passive inflows, Mambuna Njie (+US$0.2bn) also saw buying w/w. In EM, GEM funds saw offset by outflows in Internet/Media and Health Care. | US$2.1bn w/w inflow (+US$59bn ytd). Goldman Sachs International n India DII Flows: Inflows in domestic MFs dropped 15% in July to US$2.6bn on outflows from Large-cap funds. Focus: MF Allocation; MSCI Review; India MF SIP inflows remained sticky, up +1% mom to US$3.3bn. flows Fund cash levels improved in July to $14bn (up from n Prelim MF Allocation: Based on prelim. July EPFR data, lows of $12bn in June), per our estimate.

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Goldman Sachs EM Weekly Fund Flows Monitor

Focus: Preliminary Mutual Fund Positioning (Jul 2026)

Exhibit 1: Based on preliminary EPFR data (~20% of total AUM reported), Asian Exhibit 2: EM funds are most OW Brazil/Mexico, and most UW Taiwan. Over the funds are most OW China, SG and Indonesia, and most UW Taiwan and India. In past month, EM funds have raised exposure the most in Korea, and trimmed July, Asian funds raised exposure in Korea, while trimmed exposure in Taiwan exposure in China and India and Hong Kong (vs. benchmark) AEJ funds (US$95 bn - Active Fund Only) EM funds (US$215 bn - Active Fund Only) OW/UW allocation OW/UW allocation Market Market 1-mth chg 3-mth chg Market Market 1-mth chg 3-mth chg (in bp) (in bp) China 300 Korea 100 (15) Brazil 270 Korea 110 15 Singapore 160 Indonesia 60 55 Mexico 75 Thailand 5 20 Indonesia 145 Thailand 10 (5) Hungary 35 Brazil 5 (35) Hong Kong 125 Singapore 5 (35) Peru 25 Turkey 1 (10) Thailand 60 India 5 85 Turkey 20 Egypt 0 1 Philippines 10 Malaysia 2 20 China -75 South Africa (5) 5 Malaysia -45 Philippines (1) 5 Korea -105 Poland (5) (1) Korea -110 China (2) 110 Saudi Arabia -135 Taiwan (20) (50) India -270 Hong Kong (30) (75) India -230 India (30) 5 Taiwan -580 Taiwan (145) (150) Taiwan -395 China (70) 45 Note: The allocation of AEJ mandate only includes active funds, as of Jul '26…