Traditional Institutional Strategies See Positive Flows in Q3

29 Nov

Traditional Institutional Strategies See Positive Flows in Q3

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, according to the Q3 2018 eVestment Traditional Asset Flows Report. 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.

eVestment’s traditional asset flows data is based on information provided to the eVestment database by asset managers from around the world. The report offers one of the most comprehensive looks at the investment opportunities around the world that are attracting and losing assets.

Some other key points from the Q3 2018 report include:

  • 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).

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