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Traditional Institutional Asset Management Recorded Net $22.7B Inflows in Q3

By Michael S. Fischer

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The global traditional institutional asset management industry experienced net inflows of $22.7 billion in the third quarter, recouping from outflows of $80 billion in the previous quarter, according to a new report from eVestment.

eVestment’s quarterly report, published Tuesday, highlights the flow of institutional funds invested in traditional, long-only investments across regions and countries, investment types, universes and products.

In the third quarter, international equity gained favor with investors, resulting in inflows of $11.5 billion into EAFE (Europe, Australasia, Far East) and ACWI (All Country World Index) ex-U.S. strategies.

However, significant redemptions from U.S. equities continued apace, with net outflows totaling $36.7 billion, according to the report. U.S. large cap growth strategies saw the largest outflows of all U.S. equities, $16.5 billion.

U.S. bonds reported Q3 outflows of $20.4 billion despite inflows of $14 billion into U.S. core plus fixed income, the largest inflows of any fixed income category.

Following are highlights from the report of Q3 activity among several investor types:

  • Africa/Middle East-domiciled investors were net buyers, with net inflows totaling $3.6 billion
  • Europe ex-U.K. investors were net sellers, redeeming $21.2 billion
  • Japanese investors recorded net inflows of $977 million
  • Hong Kong investors withdrew $512 million, a majority of that U.S. equities
  • Australian investors saw net outflows of $5.2 billion, down from the $6.9 billion in outflows in Q2
  • Corporate pensions recorded net inflows of $12 billion, favoring emerging markets debt ($1.5 billion) and emerging markets equity ($4.2 billion)
  • Defined contribution plans reported net outflows of $1.3 billion
  • Sovereign wealth funds were net sellers, with outflows of $7.1 billion following inflows of $8.6 billion in Q2.

— Check out Hedge Funds Hit With $2.9 Billion in Redemptions in October on ThinkAdvisor.