Last year's acquisition of Barclays Global Investors pushed BlackRock Inc. to the No. 1 spot in internally managed indexed assets for the year ended June 30, topping the field with $1.697 trillion, according to Pensions & Investments' annual survey of managers of indexed assets.
BGI was the top-ranked manager of internally managed indexed assets a year earlier, with $1.621 trillion. BlackRock ranked sixth last year, with $86.1 billion.
State Street Global Advisors, Boston, remained in second place, with $1.131 trillion in internally managed indexed assets.
Both New York-based BlackRock and SSgA revised reporting data for the latest survey by eliminating cash assets that had previously been reported as fixed-income assets. BlackRock excluded assets that BGI had reported in previous surveys. SSgA revised its data to exclude cash assets that were actually actively managed.
When removing the cash assets from last year's totals, SSgA's internally managed indexed assets rose 25.5% for the year ended June 30. BlackRock did not provide revised 2009 assets.
The overall numbers also were affected by the omitted cash numbers from both managers. Total worldwide assets under internal indexed management rose to $4.781 trillion as of June 30, a 3.1% increase over (a revised) $4.636 trillion as of June 30, 2009. For the one-year period ended June 30, the Russell 3000 index returned 15.72%; the Barclays Capital U.S. Government/Credit index returned 9.65%; the Morgan Stanley Capital International Europe Australasia Far East index returned 3.13%; and the Citigroup Non-U.S. World Government Bond index returned 1.52%.
For the year ended June 30, 2009, BGI had reported $1.62 trillion and BlackRock had reported $86.1 billion. SSgA had reported $1.399 trillion for the same period.
Among the 67 index managers surveyed, $2 trillion was internally managed in U.S. equity, up 13.8% from the previous year, while the $1.413 trillion in international equity was 28.4% higher than a year earlier.
Clients have displayed a continued shift toward a global focus, according to Carter Lyons, BlackRock's San Francisco-based managing director of institutional business.
“We've seen the U.S. equity component go down and the non-U.S. equity component go up,” said Mr. Lyons. Clients are replacing “regional approaches to equity indexing to more of a global approach.”
Internally managed indexed international equity assets increased 29% to $731 billion for BlackRock for the year ended June 30, while domestic equity assets increased 4.1% to $507.5 billion, according to the P&I survey.
Benchmark expansion in the non-U.S. equity sector has also garnered client interest, according to Mr. Lyons.
“For well over 10 years, EAFE was the primary benchmark for the U.S.,” Mr. Lyons said. “Really, it's adding small cap on the non-U.S. side. (Clients) are reassessing their international exposure. They're missing the small cap in developed and emerging markets.”
At SSgA, index strategies continued to perform strongly through the past year, according to Alistair Lowe, executive vice president and global equities CIO.