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Traditional fixed-income strategies see net inflows in 2Q 2019: eVestment

Friday, August 30, 2019
Opalesque Industry Update - Long-only asset managers reported Q2 2019 institutional assets under management of $28.4 trillion to eVestment, according to the 2Q 2019 eVestment Traditional Asset Flows Report.

Net institutional flows totaled -$52.4 billion in the most recent quarter and -$370.1 billion over the past four quarters, according to the report.

The quarterly eVestment Traditional Asset Flows report highlights institutional investment asset flow trends globally and regionally across equities and fixed-income strategies based on data reported to eVestment by asset managers around the world.

Fixed income managers, excluding cash management strategies, reported net institutional inflows of +$38.3 bn in Q2 2019. Active non-U.S. bond strategies accounted for the bulk of these allocations (+$35.7 bn).

On a strategy basis, global multi-sector fixed income, global core plus and EM debt blended currency managers led in terms of fresh allocations; the breadth of Europe fixed income strategies also saw significant institutional support during the quarter.

Institutional flows for U.S. bond managers measured -$7.3 bn in Q2 2019, equivalent to -0.1% of beginning-of-period AUM. The quarter brought strong inflows for active core plus (+$15.7 bn) and passive core (+$14.0 bn) strategies.

Credit-exposed strategies, on the other hand, accounted for a significant proportion of overall U.S. bond redemptions including bank loans (-$10.0 bn), high yield (-$8.1 bn) and corporates (-$5.4 bn).

Equity strategies experienced net institutional outflows of -$122.9 bn in the most recent quarter. Passive equity strategies, however, posted net allocations of +$12.9 bn led largely by ACWI ex-U.S. (+$12.0 bn), S&P 500 (+$10.5 bn) and emerging markets products (+$4.7 bn). U.S. all cap equity and Russell 1000 strategies bore the brunt of outflows from passive strategies.

Active equity strategies continued to see outflows, -$63.6 bn for active U.S. and -$72.2 bn for active non-U.S. managers in Q2 2019. Non-U.S. growth products did see some support, led by global all cap growth (+$3.3 bn), ACWI ex-U.S. all cap growth (+$2.7 bn) and global large cap growth (+$1.4 bn); core and value strategies saw outflows across the board.

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