UK Investors & Consultants Looking Beyond Their Borders at Global, Emerging Markets Universes

07 Jun

UK Investors & Consultants Looking Beyond Their Borders at Global, Emerging Markets Universes

With Brexit still unresolved and the announcement that Theresa May would resign as prime minister following a shaky tenure, it’s perhaps no surprise that UK investors and consultants would increasingly look globally for investment opportunities last month. Seven of the top 10 most-viewed investment universes in May by UK investors and consultants using eVestment were globally focused and three were emerging markets-focused, according to the just-released eVestment Advantage Viewership Report covering activity on eVestment in May. Among the fastest rising universes viewed on eVestment by UK investors and consultants, seven of the top 10 were either global (primarily equity focused) or emerging markets (fixed income focused) universes, according to the report.

The monthly eVestment Advantage Viewership Report highlights the top asset managers and investment themes of interest to institutional investors and consultants around the world. The report looks at data globally and from various countries and regions, including the United States, the United Kingdom, Europe ex-UK, Africa, Japan and Asia ex-Japan. Putting this data into context with global and local political, markets and corporate news can offer a unique perspective into how investors are responding to that news and how they may shift assets or investment strategies over time.

EAFE-focused equity universes on the rise in Asia ex-Japan.

Half of the top 10 rising universes by investors and consultants located in Asia ex-Japan were focused on developed markets ex-US/Canada equities. None of the EAFE universes were value-oriented, but they did include all cap, large cap and small cap variants of core and growth styles. A different firm managed each of the five universes’ top rising products, including Goldman Sachs Asset Management, AQR Capital Management, Baillie Gifford & Co., American Century Investments, and Arrowstreet Capital LP.

UK investors shift attention to risk parity and other BlackRock strategies.

Investors and consultants located within the UK viewed BlackRock’s Market Advantage (Risk Parity) strategy more than any other product in May, pushing Blackrock to be the most viewed firm in the country in the process. BlackRock’s Systematic China Opportunities captured the highest level of new interest for the firm from within the UK, and its passive Emerging Market Local Bond Index product captured the most new interest within its universe.

Europe ex-UK investors show high levels of interest in local regional fixed income and APAC hedge funds.

Interest in Hamburg, Germany-based Berenberg’s (Joh. Berenberg, Gossler & Co. KG) European fixed income strategy and New York-based Indus Capital Partners LLC’s APAC hedge fund strategies shows up on multiple Europe ex-UK investor and consultant lists in May. Berenberg’s activeQ Euro Corporate Bonds was the firm’s most viewed strategy, the top rising product among all eVestment users located on the continent, the second most viewed product overall, and captured more views than any other in the region’s 3rd most viewed universe (Europe Fixed Income – Corporate). Three of Indus Capital’s hedge funds are on the rising products list: Indus Asia Pacific Fund, Indus Japan Fund, and Indus Pacific Opportunities Fund. All gathered a near-equal share of views from investors and consultants in Europe ex-UK, but the Indus Japan Fund took the top spot in the 2nd most viewed universe (Fundamental – Long/Short Equity).

Gain clarity on evolving themes and preferences as they emerge each month