The institutional money management industry reported net outflows of $100.2 billion during the third quarter, following net outflows of $76 billion in the second quarter, said eVestment’s quarterly report on global institutional asset flows.
Fixed-income strategies reported net outflows totaling $65.5 billion, following net inflows of $34.6 billion during the second quarter.
Third-quarter outflows from fixed-income markets were driven by U.S. bonds, which reported net outflows of $37.1 billion, following inflows of $28.4 billion in the second quarter. U.S. core-plus bonds reported net outflows of $9.8 billion in the third quarter, which were the largest among U.S. fixed-income categories. U.S. short-duration fixed income attracted assets from institutional investors for the second consecutive quarter, reporting net inflows of $5.3 billion in the third quarter.
Emerging markets debt recorded outflows of $7.3 billion in the third quarter, which was the second consecutive quarter of outflows. Despite outflows from emerging markets fixed income overall, emerging markets corporate bonds reported inflows of $3.6 billion in the third quarter.
Equity strategies reported net outflows of $29.3 billion, marking the 10th consecutive quarter of net outflows.
Still, international equities have continued to gain assets, reporting net inflows over each of the last three quarters. Europe, Australasia, Far East strategies reported inflows of $7.8 billion in the third quarter, and ACWI ex-U.S. equities reported inflows of $6.4 billion during the third quarter.
Emerging markets equities recorded outflows of $2.7 billion in the third quarter. Outflows were driven by sovereign wealth funds redeeming $2.8 billion during the quarter, the report said. Emerging markets large-cap strategies saw outflows of $1.7 billion, marking the first quarter of outflows for the universe since the third quarter of 2013.
Also, balanced/multiasset strategies saw net outflows of $5.3 billion during the third quarter, following inflows of $15.6 billion in the previous quarter.