Traditional Asset Managers Start 2019 with Outflows After Tough 2018

30 May

Traditional Asset Managers Start 2019 with Outflows After Tough 2018

Long-only asset managers reported Q1 2019 institutional assets under management of $26.8 trillion to eVestment according to the just-released eVestment Q1 2019 Traditional Asset Flows Report. Net institutional flows totaled -$22.8 billion in Q1 2019 and -$499.0 billion over the past four quarters.

Institutional flows were accretive for long-only fixed income strategies, excluding cash management products, in Q1 2019 to the tune of +$22.6 billion. Equity managers, on the other hand, saw institutional investors pull -$86.4 billion in assets on a net basis during the quarter. Multi-asset strategies also saw outflows across a wide variety of strategies, including balanced, tactical asset allocation, and diversified growth.

Other interesting trends highlighted in the report include:

  • Q1 2019 marked a strong quarter for passive equity strategies with institutional allocations for passive U.S. products measuring +$25.9 billion and passive non-U.S. products +$5.3 billion. Within the non-U.S. segment, flows were particularly strong for passive EM, EAFE, and ACWI ex-U.S. strategies.
  • Despite headline inflows for U.S. fixed income of +$9.5 billion, U.S. credit-oriented strategies experienced redemptions across the board for the second straight quarter. U.S. bank loan managers were particularly hard hit with institutional redemptions of -$19.1 billion in Q1 2019. U.S. corporates and high yield managers also saw net outflows of -$8.8 billion and -$1.5 billion, respectively.
  • Japan-domiciled investors withdrew assets on a net basis from almost all of our high-level universes in Q1 2019. Japan fixed income strategies were the only cohort to escape redemptions and were still roughly net flat in aggregate with inflows of +$0.1 bn, equivalent to +0.1% of year-end 2018 Japanese investor AUM.

Learn more about global distribution and movement of institutional assets across equity, fixed income and balanced/multi-asset strategies.