Institutional Investors Pause on Manager Allocations Q1

01 Jun

Institutional Investors Pause on Manager Allocations Q1

After four straight quarters of positive allocations to institutional asset managers in 2017, institutional investors pulled back slightly in Q1 2018. Institutional AUM was down -$2.8 billion among asset managers reporting to eVestment in the quarter according to the just-released Q1 2018 eVestment Traditional Asset Flows Report.

Fixed income strategies, excluding cash management products, were big winners in Q1 2018, with net inflows of +$101.2 billion during the quarter, with global (+$40.7 billion), U.S. (+$39.4 billion) and emerging markets (+$19.7 billion) fixed income managers accounting for the bulk of allocations.

Long-only equity managers saw big outflows of -$100.5 billion in Q1 2018, of which -$70.4 billion came from active managers and -$30.1 billion came from passive managers.

This quarterly eVestment report looks at institutional investment asset flows around the world across strategies, investment geographies, investor domiciles and other categories based on data reported to eVestment by institutional asset managers.

Some other interesting trends highlighted in the report include:

  • S.-domiciled investors were net allocators to U.S. and global fixed income universes during Q1 2018, +$18.8 billion for U.S. and +$5.7 billion for global strategies.
  • K. investors were net redeemers of assets across most major universes. Among the exceptions were global, emerging markets and European fixed income strategies with net inflows of +$5.8 billion, +$1.3 billion and +$0.2 billion, respectively.
  • Europe ex-U.K. domiciled investors were substantial redeemers of assets from Europe (-$9.8 billion), global (-$2.6 billion, and U.S. fixed income (-$10.9 billion) strategies in Q1 2018. The one exception was emerging markets fixed income where continental European investors allocated +$11.3 billion during the quarter.

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