Institutional Asset Management Biz Sees Outflows in 4Q 2016

21 Feb

Institutional Asset Management Biz Sees Outflows in 4Q 2016

The institutional asset management industry saw net outflows of $167.1 billion in Q4, following flat net flows in 3Q, according to the just released eVestment 4Q 2016 Traditional Asset Flows Report.

The report looks at asset management industry flow trends across a wide variety of strategies, geographies and account types, giving a look at institutional investor preferences for how and where their assets are managed around the world.

A few interesting points from the report include:

  • Investors pulled assets from managers from most major markets around the globe, with accounts domiciled in the United States, Europe, the United Kingdom, Canada, Africa/Middle East and Australia all seeing outflows. The largest was the United States, outflows totaled $160.1 billion in 4Q 2016, bringing total net outflows for United States domiciled accounts to $533.3 billion.
  • Accounts domiciled in Asia ex-Japan and Hong Kong saw small inflows in Q4 2016 – $5.4 billion and $1.7 billion respectively – but overall saw outflows for the entire year.
  • ESG-focused strategies continue to attract a lot of search activity in the eVestment database, and that search activity is being rewarded with asset flows: The eVestment All ESG-Focused universe reported net inflows of $1.1 billion in the fourth quarter. Institutional investors in the US have been responsible for net inflows of $4.7 billion into ESG-focused strategies over the last four quarters.
  • Among account types, defined contribution pension plans saw strong inflows of $4.9 billion in 4Q 2016.

To download a full copy of the report, please click here.