More institutional investors are moving into balanced or multiasset strategies and out of U.S. fixed income and equity, eVestment’s quarterly report on global institutional asset flows shows.
Balanced or multiasset strategies reported net inflows of $54.6 billion from institutional investors in the fourth quarter and $140.9 billion in 2014, according to eVestment.
As in previous quarters, fixed-income outflows were largely driven by U.S. core-plus fixed income, which posted net outflows of $60.9 billion, up from net outflows of $20.4 billion reported the previous quarter. U.S. core bonds, however, posted net inflows of $15.8 billion, the largest inflows of any fixed-income category and compared to $14 billion in net inflows reported last quarter. Fixed-income saw $52.4 billion in total net outflows.
Emerging markets debt saw additional net outflows in the fourth quarter of $11.2 billion, up from $2.1 billion in the prior quarter. Over the course of 2014, eVestment’s emerging markets debt fixed-income universe experienced $16.3 billion in total net outflows.
On the equity side, domestic equity strategies continue to experience net outflows — $42.7 billion in the fourth quarter, up from $36.7 billion reported the previous quarter — driven by U.S. large-cap growth net outflows of $19.4 billion.
On the other hand, international equity, global equity and emerging markets equity strategies reported net inflows of $19.8 billion, $13.9 billion and $3.3 billion, respectively, in the fourth quarter.