Article: Emerging-markets-equity funds see big 1Q outflows; Jittery investors yanked $1.85 billion, Morningstar estimates.(News)

Byline: Sue Asci

A cold front materialized in the first quarter for the once-hot emerging-markets-equity sector as U.S. investors pulled out $1.85 billion from the fund category.

That represented about 11% of the $17 billion they invested last year, according to an estimate from Chicago-based Morningstar Inc. It was the first quarter of outflows for such funds in nearly two years, the research firm said.

"In the first quarter, if you were an equity investor, where could you hide?'' asked Jeff Tjornehoj, senior research analyst at New York-based Lipper Inc.

"People are definitely more responsive to volatility in the market and very ...

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