European institutions favoured global fixed income

Global fixed incomeEuropean (ex-UK) institutional investors allocated large amounts to fixed income in the third quarter (Q3) of the year and retreated from US equities.

Global fixed income took in $33.4 billion (€28.1 billion) of inflows, while emerging market and European fixed income saw allocations of $7.4 billion and $6.9 billion, respectively.

The US equities category “remained the one universe which saw significant outflows from continental European investors” with net redemptions at $2.9 billion, according to eVestment figures that count traditional asset flows.

In the UK, long-only equity managers saw equity redemptions across UK, global and US equities. Over the last four quarters redemptions in these categories totalled $39.6 billion.

Instead, UK investors during Q3 committed capital to global multi-assets, and fixed income  investments including US, UK and Europe.

Globally, asset managers reported long-only institutional assets under management of $26.5 trillion at the end of Q3, up from $25 trillion a year before, according to the ‘eVestment 3Q 2017 Traditional asset flows report’. 

Long-only fixed income managers saw net allocations of $186.2 billion during Q3, continuing a run of successful money raising in this category. Long-only equity managers saw total outflows of $103.5 billion, with US equity managers accounting for $96.3 billion of it.

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