DARIEN, Conn. — Amid the specter of rising interest rates and oil prices, the second quarter was difficult for money managers across most institutional product asset classes.
Quarterly returns in some major sectors broke a year of positive returns, according to a recent report by consulting firm Casey, Quirk & Acito LLC, Darien.
All fixed-income peer groups, as well as international growth equity and emerging markets equity, posted negative returns for the second quarter. Of the groups that declined, the worst was emerging markets equity, which had a median quarterly return of -9.8%, according to the Quarterly Institutional Product Review, which was compiled with data from InvestorForce Inc., Wayne, Pa. In the first quarter, the emerging markets equity category returned 9.3%.
Despite the weak second quarter return, institutional fund flows into emerging market equity products for the year ended June 30 were up $10.3 billion, to $108.7 billion.
Emerging market debt fared little better than its equity counterpart, with a second quarter median return of -5.8%, according to the report. That compares with a median return of 3.5% in the first quarter. One-year fund flows into emerging market debt remained positive, with $4.7 billion going to that group, bringing the total to $22.6 billion.