Tax-exempt investors moved a total of $62 billion to other strategies in 2006, up from $21 billion in 2005, as many investors directed assets into alternatives from U.S. equities, particularly value strategies, according to Callan Associates 2006 Style, Trend, Analysis and Research report.
It appears that equities primarily large-cap and small-cap strategies have become the primary source of funds for alternatives, according to the report, which includes data across 16 styles and $3.2 trillion in assets. Large-cap value outflows totaled about $21 billion last year, and small-cap value, $12 billion.
Institutional core and core-plus fixed-income strategies gained roughly $16 billion in assets in 2006, which the report attributed to rebalancing. Global equity strategies gained $3.1 billion in assets, although international equities had outflows of about $23 billion. Mutual funds had inflows of $18 billion.