Q3 2018 Traditional Asset Flows Report

About the Report

This report shows the flow of institutional funds across investment strategies, regions, and investor types. Investor flows are calculated based on a bottom-up approach, measured for each product and summarized at the universe and asset class levels. Over 4,000 institutional asset management firms submit data about their investment strategies to eVestment every quarter, including performance, holdings, characteristics, narratives, fees and AUM.

Traditional Strategies See Positive Flows in Q3, US Fixed Income Strategies Strong

Net institutional asset flows to long-only asset managers reporting to eVestment were positive in Q3 2018, with investors adding +$10.9 billion to the industry. Year-to-date (YTD) flows are still negative for the year at -$233.8 billion. Fixed-income managers had a particularly strong quarter, with net inflows of +$61.2 billion, compared to net outflows of -$42.9 billion in Q2 2018. On a geographic basis, fixed income flows were concentrated largely in U.S. strategies with active U.S. bond managers seeing net allocations of +$42.4 billion and passive U.S. bond strategies seeing allocations of +$16.4 billion.

Report Highlights:

  • Unlike fixed income, equity strategies saw outflows in Q3, with U.S. equity outflows coming in at -$62.9 billion and non-U.S. equity outflows of at -$17.6 billion.
  • There were some bright spots in equities however. For instance, international equity strategies saw the largest allocations with EAFE equity managers gaining net new assets of +$17.5 billion. Active U.S. quant strategies also managed to pull in +$2.1 billion in inflows.
  • UK investors allocated a significant amount of net new assets to various fixed income segments, including U.S. (+$12.2 billion), Europe (+$1.6 billion) and emerging markets (+$1.2 billion).
  • On the other hand, Europe ex-U.K. domiciled investors dis-allocated from a handful of large fixed income markets, namely U.S. fixed income (-$9.6 billion), global fixed income (-$14.2 billion) and U.K. fixed income (-$2.1 billion).

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