A strong uptick in the equity markets, coupled with fallout from the U.S. mutual fund scandal, spurred significant growth for managers of overseas accounts for the year ended March 31.
The 186 managers in Pensions & Investments' directory of international and global money managers reported $1.235 trillion in U.S. institutional tax-exempt assets under management in overseas mandates, up 61% from the year before.
In the same time period, the Morgan Stanley Capital International World index rose 44.6%, while the MSCI Europe Australasia Far East index shot up 58.2%. Bond performance was notably weaker than the previous survey period: the Citigroup Non-U.S. World Government Bond index returned 16.1%, vs. 28.95% the previous year, while the Citigroup World Government Bond index returned 13.5%, compared with 25.22%.
Overall assets handled by the top 50 managers increased 61.2%. Assets managed by the top 50 managers of accounts pegged to an international index increased 65% overall, although that drops to 9.2% on a market-adjusted basis. Assets managed by the top 50 managers of assets pegged to a global index increased 44.7% overall, still a strong 16% when adjusted for the market.
The top 50 international money managers had 88.9% of their assets in stocks, 5.8% in bonds, 0.7% in cash and 4.6% in other investments. The top 50 global managers had 45.3% of their assets in stocks, 31.5% in bonds, 1.7% in cash and 21.5% in other investments.