Fixed-income net inflows increased to $40 billion for the year ended March 31 from $6 billion for the year ended March 31, 2003, according to a new report from Casey Quirk & Associates. Despite the increase, the median fixed-income manager surveyed returned 4.1% for the past year, compared with 11.9% in 2003.
The increased flows into fixed-income strategies were largely driven by core-plus strategies, which gained a net $36 billion over the last year and $35 billion in the previous year. Long-duration fixed income netted $10 billion in new flows for the year, compared with an outflow of $500 million three years ago. At the same time, however, core fixed income experienced $12 billion in net outflows for the year ended March 31, and $3 billion in net outflows for the year ended March 31, 2005, according to the report.
Overall U.S. equity inflows declined to $18 billion for the year ended March 31, compared with $33 billion for 2005.
