US-Based Investors Show Least Interest in Global Strategies, Most in Domestic.

08 Aug

US-Based Investors Show Least Interest in Global Strategies, Most in Domestic.

In July, 17% of views from US-based investors and consultants were directed at global products and the majority (53%) at US products, according to the just-released July 2019 eVestment Advantage Viewership Report. Only clients in two other regions, Canada (27%) and Europe ex-UK (32%), had less than 40% of their views go to globally focused strategies. However, and as mentioned in a prior bullet, the most viewed product by US users was WCM’s Focused Growth International strategy, and the product from the most viewed firm receiving the most views was a global small cap core strategy (Wellington Management Company’s Global Perspectives).

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.

Investor and consultant views of WCM Investment Management’s Focused Growth International strategy more than double, pushing it to the top of July’s most viewed products list.

This ACWI ex-US all cap growth equity strategy was viewed primarily by US-based eVestment users at 15 leading consultant firms, in addition to corporate pension, family office, foundation, public pension and manager of manager firms. This concentrated equity product has been in the top quartile of its peer group for over a decade and has outperformed MSCI’s ACWI ex-US Growth-GD index for the duration.

Japan-based clients attentive to domestic strategies.

Despite comprising less than 3% of all active products on the eVestment platform, Japan-centered strategies accounted for a little over one-fifth of all Japan-based investor and consultant profile views on the platform in July. The top three most viewed and rising products were all Japan-focused, as were the top two most viewed and rising universes. The top viewed/rising strategies include Nomura’s Japan Equity – Strategic Value (C110015), Sompo Japan Nipponkoa AM’s Japan Value Equity Large Cap and AllianceBernstein’s Japan Strategic Value Equity.

Continental Europe-based investors and consultants eye US strategies, while UK investors and consultants go global.

Around 40% of profile views from continental Europe went to strategies directed at US markets, specifically US Large Cap Core products. This universe attracted one-fifth of all views, nearly four times the amount of views that went to the next highest universe, and five of the top 10 most viewed strategies were US-focused. Among UK-based users however, roughly half of all views went to globally focused strategies and eight of the top 10 most viewed were globally focused, including Sloane Robinson LLP’s SR Global Fund (Class C) International, a long/short equity hedge fund; the non-global strategies in the top 10 were ACWI and EM-oriented.

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