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Money Management

eVestment: Traditional managers see $7.9 billion in net outflows in Q2

Institutional investors pulled a net $7.9 billion from traditional asset managers in the three months ended June 30, with fixed-income net inflows offset by active equity net outflows.

By comparison, the quarter ended March 31 saw net inflows of $17.9 billion.

Figures by data provider eVestment in its quarterly "Traditional Asset Flows Report" said money managers reported long-only institutional assets under management of $25.3 trillion as of June 30, up 4.1% from a year earlier.

Fixed-income strategies in the second quarter had $66.5 billion in net inflows. U.S. fixed-income managers gained $45.1 billion, compared with $70.9 billion in net inflows in the first quarter. Global fixed-income managers added $21.3 billion, compared with $28.7 billion for the previous quarter.

Active non-U.S. fixed-income strategies saw the largest net inflows in the quarter at $24.7 billion. That compared with $35.2 billion in net inflows for the previous quarter. Passive non-U.S. strategies added $3.9 billion, compared with $1 billion in redemptions the previous quarter.

On the equities side, active U.S. managers saw net outflows of $68.9 billion in the second quarter, compared with $53.5 billion in net outflows the previous quarter. The quarterly average from the second quarter 2016 to the first quarter of 2017 inclusive was $92 billion in net outflows, eVestment said.

Passive strategies fared better, with $33.8 billion in institutional net inflows for non-U.S. passive equity strategies vs. $13.5 billion in net inflows the previous quarter. Passive U.S. equity strategies saw $4.4 billion in net outflows, compared with $29.6 billion in net inflows the previous quarter.

Comparisons for the second quarter 2016 were not available.

In commentary accompanying the report, eVestment said flows for U.S. equities in the quarter ended June 30 favored value managers. However, for non-U.S. equity strategies, flows were stronger for growth managers across global; Europe, Australasia and the Far East; global ex-U.S.; and emerging markets strategies. eVestment said net inflows were also recorded to global credit and high-yield strategies. Figures could not be learned by press time.