Consultants’ interest in hedge funds at three-year highInstitutional investors and consultants use eVestment’s platform daily to view the product profiles of traditional and non-traditional (hedge fund and similar alternatives) strategies. The changing proportion of all possible views captured by hedge funds is a useful barometer of institutional interest toward the industry.
Nasdaq acquires institutional investment fintech firm SolovisNasdaq, Inc. (Nasdaq: NDAQ) announced today the acquisition of Solovis, a privately-held financial technology company offering multi-asset class portfolio management, analytics and reporting tools across public and private markets. Solovis solutions will be available through Nasdaq’s eVestment group and broaden eVestment’s capabilities with portfolio analysis and monitoring for institutional investors and consultants.
Q4 sees widespread outflows across passive equity, allocations to US fixed incomeTraditional asset managers reported institutional assets under management of $26.9 trillion through Q4 2019 to eVestment. Net institutional flows totaled -$59.4 billion in the most recent quarter and -$210.7 billion over full year 2019 according to eVestment data.
Investors move from corporate credit to core fixed income & reduce duration exposure in 2019U.S. fixed income ex-cash strategies reported net institutional inflows of +$33.98 billion for FY 2019 to eVestment Asset Flows. Institutional investors generally preferred core fixed income, eschewing strategies focused on credit.
2019 Public plan commitments at a glance: Private Equity & Private DebtEach month, eVestment Private Markets crunches the numbers on public pensions’ reported commitments to private funds, digs into notable activity, and produces the Private Markets Monthly Monitor. Check out the latest edition here.
ESG is a hot topic. But does investor and consultant screening activity reflect that?There has been a steady rollout of investment products catered to various ESG factors and no shortage of media attention. While there remain questions regarding how to properly incorporate ESG principles, the supply side of the equation does not seem to be a serious constraint.
In 2 charts: 2019 public plan commitments revealedMarket Lens documents show last year 267 private equity GPs captured 45% of public plan commitments, raising $64 billion in capital from 109 plans. In contrast, 65 traditional equity managers captured just 5.5% of public plan commitments, but raised $41 billion in the process.
The most over- and underweight positions among institutional EM equity managersEM equities have rebounded modestly YTD through Q3 2019 after a substantial drawdown in the prior year with the MSCI EM up +6.23% through Sep 30. There has been significant dispersion in EM equity returns YTD with Europe outperforming Asia and Latin America, large caps outperforming mid and small caps, and growth outperforming value.