Institutions buy more US fixed income

US fixed income was the main beneficiary of broader positive investment flows into bonds in the second quarter (Q2) of the year.

Continuing the positive trend in the first quarter, institutional investors placed $66.5 billion (€55.7 billion) into fixed income overall, with US fixed income gaining $45.1 billion, according to eVestment figures.

Institutional investors added to US core and core-plus fixed income, but preferred to obtain additional corporate exposure from global, emerging markets and UK strategies.

Flows for US equities in Q2 2017 again “clearly favoured” value managers. However, the value tilt did not extend to non-US strategies, where stronger flows were seen for growth strategies across global, Europe, Australasia and the Far East (excluding emerging markets), said eVestment in its ‘Asset Flows’ report.

The quarter was negative for active equity managers across a number of investment styles and geographies. For example, active US equity managers saw outflows of $68.9 billion during the quarter.

Active global all-cap and large-cap strategies combined for net outflows of $11.4 billion, while active EAFE all-cap and large-cap flows stood at $12.5 billion.

©2017 funds europe

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