Hence, the large negative outflow from emerging market equity funds is unlikely a surprise to investors.
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Inflows into emerging market equity funds were muted in the last week despite the rally.
The MSCI Emerging Markets (EM) Index is designed to measure global emerging market equity performance.
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But, within emerging market equity funds, pessimism about China is getting trumped by overall optimism on Asia.
By contrast, emerging market equity indices are trading at only a 5% discount to their 10-year averages.
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Most emerging market equity portfolios are benchmarked to the MSCI Emerging Market index.
Dietrich sees the current lull in emerging market equity as a buying opportunity.
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Morgan Stanley's Jonathan Garner, chief Asian and Emerging Market Equity Strategist, concurs that China is experiencing a V-shaped recovery.
In 2008, as a result of the financial crisis, emerging-market equity prices slumped 53%, he says, while emerging-market debt prices fell only 11%.
The short-term prospects for emerging market equity rests on U.S. and European policy makers, which is like tight-rope walking over Niagara Falls, wearing ankle weights.
Since then, foreign money managers have sold their emerging market equity positions, but have remained relatively stable on fixed income, according to EPFR Global in Cambridge, Mass.
Instead, these investments would rely more heavily on active management--things like emerging market equity and debt funds, domestic high-yield bonds, small cap equities, real estate and private equity.
Mr Gilbert said the level of fixed-income business that had left Aberdeen Asset Management had "slowed significantly" and the company continued to be successful in attracting new investment to global equity and emerging market equity funds.
On the equity side, compared to the benchmark MSCI Emerging Markets index, global emerging market equity funds were underweight, in order of less weighting, Brazil, China and Russia, and slightly overweight India up to June 11, according to EPFR Global and Barclays.
Since then, through the lows in the U.S. averages of March 2009, through the declines in emerging market equity from Nov. 2010 to the second quarter of 2011, and through the European and U.S. debt calamities, shares of BYD have declined by 70.13%.
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While doomsday guys like Marc Faber warn that QEIII will bring on the Mayan Apocalypse at some point in the near future, anyone sitting on an emerging market equity was mighty pleased with themselves for tolerating nearly two quarters of declining values.
Looking at the decline in total assets under management, equity assets are currently at about beginning-of-year levels, indicating that while many equity markets have not provided negative returns for the year, dedicated emerging market equity fund managers may have lightened up in their positioning to account for this retreat in assets under management.
The equity market has been the beneficiary of the interdependence it has developed with the artificially overbought bond market and it will be this correlation which will cause the equity market to decline as the bond market declines.
The secondary market for private equity assets appears to have strengthened radically this fall, along with the dramatic rise of the stock market and as non-traditional players have emerged as interested buyers in the secondary market for private equity fund stakes.
And the regulators would be in position, I think, and this is a bit of a stretch, but I think the regulators would be in much better position with transparent reporting to see if there are any linkages from the CDS market to the equity market.
He thinks the bull market in equity still has some legs, though not long ones, and thinks the bear market in gold will reverse as the West continues to face debt problems and inflation.
In 2010, it controlled nearly 26% of the cash equity trading market in the U.S. If Nasdaq acquired NYSE, it would become the leader in the cash equity trading market in the U.S. with about 44.6% market share.
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Over the last two years there has been 57 new emerging market focused equity ETFs launched.
The Greenwich, Connecticut-based middle-market private equity firm is shifting its strategy to consumer products from industrial companies, says Ian MacTaggart, managing partner.
The company describes itself as "one of the world's leading mid-market private equity firms", and has its headquarters in New York with other offices in London and Paris.
All business owners, particularly small fries, should operate their businesses with the knowledge that their vendor or customer could get acquired at any time, said Peter Hermann, a founding partner of Heritage Partners, a middle-market private equity firm.
The asset management business earns money by offering customers a wide range of investment products so that customers can invest their money in the market (equity, fixed income, alternative investment etc.) and product that best matches their investment goals.
If the game is up in the junk market, there will be severe consequences for the equity market, especially those shares that have not already been mauled.
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