Money managers internally managed U.S. institutional tax-exempt assets fell 6% in 2002, to $6.7 trillion, more than double the decline of a year ago, Pensions & Investments annual survey shows. Results of the survey will be published May 26.
But the 6% drop is relatively small, considering major domestic stock indexes lost about 22% for the year.
Robust bond returns (the Salomon Broad Bond index rose 10.1%, for example) and increased cash flow from stepped-up employer contributions to pension funds helped stem the asset drain.
Worldwide institutional assets decreased 2.1% to $13.2 trillion. Currencies are largely the reason that the overall decline in worldwide institutional assets is less precipitous, said Timothy Barron, director of research at investment consultant CRA RogersCasey. Non-dollar-denominated assets were likely to have declined less when converted to the U.S. dollar, said Mr. Barron.
In the institutional universe, State Street Global Advisors remains the largest money manager with $745 billion in worldwide institutional and $509 billion in U.S. tax-exempt institutional assets. Barclays Global Investors and Fidelity Investments held on to their second and third spots, respectively. BGI had $670 billion in worldwide institutional assets and $408 billion in U.S. tax-exempt institutional at the end of 2002; Fidelity had $575 billion and $349 billion, respectively.