EM Weekly Fund Flows Monitor North Asia saw US$5bn foreign selling, while Brazil saw moderate inflows w w

Portfolio Strategy Research 4 September 2026 | 7:45PM BST

North Asia saw US$5bn foreign selling, while Brazil saw moderate inflows w/w; Hedge funds continue to de-gross in Asia in August for a second consecutive month; FTSE Review Implications

Foreign (FII) flows / positioning Reviews Sunil Koul | n EM Asia ex-China markets saw FII outflows of US$4.7bn n HF Positioning (August): Although Asian equities Goldman Sachs International

w/w, driven by Taiwan (-US$2.4bn) and Korea continued to de-gross in August for a 2nd consecutive Timothy Moe, CFA | (-US$1.8bn). Non-Asia EMs saw modest buying of month, HFs have only reversed risk added since Goldman Sachs (Singapore) Pte

~US$30mn w/w, led by Brazil (+US$250mn) but offset by mid-May. YTD flows in Asia remain heavily risk-on. Net Alvin So, CFA | Goldman Sachs (Asia) L.L.C. UAE (-US$190mn). Allocation to Asia (DM + EM) in the GS Prime book is at 73rd %ile over past 1-year. Net allocation to China Tarun Lalwani, CFA | recovered ~150 bps after steep reduction in July. Korea HK/China Connect, Domestic retail flows Goldman Sachs India SPL and Taiwan experienced large de-grossing flows as HFs Terry Chan n Southbound saw inflows of US$0.9bn w/w (Ytd | sold longs and covered shorts in the market. Net Goldman Sachs (Asia) L.L.C. US$49bn). Taiwan (+US$2.4bn) and Korea (+US$0.4bn) allocations to Korea ended the month at 5% (72nd %ile Si Fu, Ph.D. saw retail buying this week. Ytd, Asian markets have seen | 1-yr), while Taiwan at 6.6% (65th %ile 1-year). Goldman Sachs (Asia) L.L.C. US$67bn retail inflows. n FTSE Global, China & Taiwan Index Reviews: Effective Kinger Lau, CFA | from this review, Greece will be reclassified from an Goldman Sachs (Asia) L.L.C. Global Equity mutual fund flows Advanced Emerging Market to a Developed Market in John Kwon | n Equity funds globally saw inflows of US$2.8bn w/w (vs. a single tranche. FTSE China 50/A50 and Taiwan 50 will Goldman Sachs (Singapore) Pte US$9.2bn inflow last week). In DM, US funds saw net see 2/2 and 1 constituent changes, respectively, Amorita Goel, CFA selling of US$5.9bn. Europe (+US$0.8bn) and Japan effective after 18th September. Together with the FTSE | Goldman Sachs (Singapore) Pte (+US$1.4bn) saw buying w/w. In EM, GEM funds saw Global Equity Index Series (GEIS) review, we estimate Mambuna Njie US$2.2bn w/w inflow (+US$65bn ytd). the rebalancing could generate over US$5.5bn and | Goldman Sachs International US$2.2bn of gross two-way passive flows, and Focus: Hedge Fund Positioning; FTSE Index US$1.5bn and US$1.2bn of net inflows, across the China/Hong Kong and Taiwan markets, respectively.

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Goldman Sachs EM Weekly Fund Flows Monitor

Focus: Hedge Fund Positioning (August)

Exhibit 1: Asian equities continued to de-gross in Exhibit 2: Despite two consecutive months of large Exhibit 3: Net Allocation to Asia (DM + EM August for a second consecutive month de-grossing flows, Hedge Funds have only reversed combined) in the GS Prime book is at 29.8% (73rd risk added since mid-May. YTD flows in the region %ile 1-year, 95th %ile 5-year), representing a remain heavily risk-on 12.7% overweight vs. MSCI World AC.

Asia Net Trading Flows - Monthly Net Regional Allocation | O/U Weights vs MSCI AC World

% of Regional Gross MV at start of Period % of Asia Gross MV at Start of period Cumulative Gross Trading Flows: Asia Equities 25% 20% 15% Asia (DM+EM) 10% 5%

Z Score 0% -5% Europe -10% -15% -20% North America Aug -25%

Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 Jul-26

Source: Goldman Sachs FICC and Equities Source: Goldman Sachs FICC and Equities Source: Goldman Sachs FICC and Equities

Exhibit 4: Net allocation to China recovered by Exhibit 5: Korea experienced large de-grossing Exhibit 6: Taiwan also saw net selling flows with about 150 bps after steep reduction in July to 7.4% flows as Hedge Funds sold longs and covered shorts large de-grossing in August. Hedge Funds sold longs (16th %ile 1-year, 29th %ile 5-year). Gross in the market. Net allocation to…