Indexed assets in Pensions & Investments' universe topped $4 trillion as of Dec. 31, according to P&I's latest survey of the leading index managers.
The assets grew 14.2%, to $4.04 trillion, from $3.54 trillion as of June 30. On a market-adjusted basis, total indexed assets rose 4.8%. (The figures refer to internally managed assets only.)
When split by asset class, domestic indexed equity assets rose a market-adjusted 5.1%; domestic fixed income rose a market-adjusted 2.7%; international equity, 8.8%; and international fixed income fell a market-adjusted 4.6%.
During the six months ended Dec. 31, the Russell 3000 index returned 8.1%; the Citigroup Broad Investment Grade bond index returned 4.3%; the Morgan Stanley Capital International Europe Australasia Far East index, 15.1%; and the JPMorgan Non-U.S. Government Bond index, 14.2%.
Total U.S. institutional tax-exempt assets under internal indexed management grew, but was slightly behind the market. Total institutional tax-exempt indexed assets came in at $2.2 trillion as of Dec. 31, an increase of 6.8% from June 30. On a market-adjusted basis, however, there was a loss of 1%.
Enhanced indexing strategies grew 20.3%, with $378.6 billion reported as of Dec. 31, reflecting pension sponsors' increasing interest in the strategy's additional return without an increase in active risk.
Barclays Global Investors, San Francisco, held steady in the top spot of index managers, with $1.3 trillion in total worldwide indexed assets as of Dec. 31, an 18.3% increase from $1.1 trillion as of June 30. On a market-adjusted basis, BGI saw those assets rise 7.4%.
BGI's U.S. institutional tax-exempt indexed assets grew at a slower pace, with $635.3 billion in assets, a 9.3% increase from $581.3 billion as of June 30. On a market-adjusted basis, assets grew 1.1%. When split by asset class, BGI saw the largest growth among its own assets in institutional tax-exempt indexed domestic bond assets, with a market-adjusted increase of 11.7%.
State Street Global Advisors, Boston, lagged behind BGI slightly in the growth of total indexed assets, with $1.15 trillion reported as of Dec. 31, an 8.1% increase from $1.06 trillion as of June 30. On a market-adjusted basis, growth was flat.