The money managers had a total of $1.393 trillion in U.S. institutional tax-exempt assets under management in overseas mandates, a 12.8% increase over March 31, 2004.
The Morgan Stanley Capital International World index returned 10.56% for the year ended March 31, and the MSCI Europe Australasia Far East index returned 15.06% for the same period. The Citigroup Non-US World Government Bond index gained 6.98%.
Overall assets for the top 50 managers of international and global accounts were up 10.8% to $1.156 trillion for the year ended March 31. Assets for the top 50 managers of international accounts increased 11.7% to $931.2 billion, while the top 50 managers' total assets in global accounts rose 7.3% to $224.6 billion.
BGI was one firm that saw significant growth this year. The firm credits additional allocations by existing international and global clients, said Matt Scanlan, managing director-U.S. institutional at BGI. He also said search activity for international and global mandates was slightly better than it had been in the previous few years. "We had a good amount of large clients sign on, and we've been pleased with the level of new client activity."
Sean Flannery, chief investment officer-North America and head of fixed income at SSgA, said that despite the company's $5 billion decline from last year, "we had tremendous momentum in first quarter '05 coming from all around the world. … Assets in enhanced grew by over 80% for year 2004 on a net basis," all in international and global mandates.
"We wanted to increase the revenues from assets under management from active strategies," which accounted for 75% of new business in the first quarter this year, Mr. Flannery said. "Most people (think of) State Street as an index manager, but there has been a steady rampup of active business over the past several years. It's been a very deliberate strategy," he said.
Search activity declined significantly a couple years ago, he said, but today, "Our pipeline is as good as it's ever been." He declined to provide names of new clients, but according to a report in Pensions and Investments (Nov. 29, 2004), one of them was the Illinois State Board of Investment, Chicago, which SSgA hired in November to run $125 million in international small-cap equities.