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Institutional investors allocated +$49.4 bn to passive U.S. equity and +$61.2 bn to passive non-U.S. equity strategies in Q1 marking the largest combined inflow quarter since at least 2005. Almost all passive equity universes saw significant institutional inflows in Q1; the few exceptions were passive Japan equity (-$7.7 bn), and passive Europe and U.K. equity which were both roughly flat.

Active equity strategies experienced net institutional redemptions totaling -$80.9 bn in Q1, an improvement over the -$145.3 bn quarterly average in 2019. In terms of active U.S. equity flows, we saw value strategies favored over growth for the first time in recent memory - and active large cap value managers saw their first quarter of net institutional inflows since Q2 2014. However, this preference did not hold for non-U.S. value equity managers.

Fixed income managers, excluding cash management strategies, reported net institutional outflows of -$271.4 billion in Q1 2020. U.S. fixed income strategies saw the largest redemptions led active long duration (-$70.7 bn), active core bond (-$35.6 bn), and passive core bond strategies (-$32.5 bn). Stable value fixed income was one of the few universes to see sizable allocations, measuring +$23.8 bn in Q1.

Non-U.S. fixed income also saw significant outflows from both active and passive products. Global multi-sector fixed income, global unconstrained bond, and passive Europe fixed income each saw institutional outflows of greater than -$10.0 bn. At the other end of the spectrum, credit-oriented European debt strategies were one of the few fixed income segments with institutional allocations during the quarter.