A year of good bond returns was not enough to overcome the sharp shocks from worldwide stock markets for the year ended March 30.
The 178 managers in Pensions & Investments' directory of international and global money managers reported $767 billion in U.S. institutional tax-exempt assets under management in overseas mandates, down 14% from a year ago.
In the same time period, the Morgan Stanley Capital International World index fell 25.3%, while the MSCI Europe Australasia Far East index fell 24.74%. Bond returns for the 12 months ended March 31 were strong, with the Salomon Non-U.S. World Government Bond index up 28.95% and the Salomon World Government Bond index up 25.22%.
Assets managed by the top 50 managers of international accounts fell to $505 billion for the year, a 15.5% drop from the $597.8 billion of the previous year. However, on a market-adjusted basis, international assets were up 4.9%.
Assets managed by the top 50 global managers fell to $144.6 billion for the year, down 5% from $152.5 billion the previous year. On a market-adjusted basis, assets fell 4.6%.
The top 50 international money managers had 87% of their assets in stocks, 7% in bonds, 0.6% in cash and 5.4% of their assets in other investments. The top 50 global money managers had 42.4% of their assets in stocks, 38.9% in bonds, 2.4% in cash and 16.3% of their assets in other investments.