An equity market bump after the election of President Donald Trump helped increase money manager assets in 2016.
Worldwide institutional assets of the largest 500 firms in Pensions & Investments annual money manager survey increased 9.2% in 2016 from the previous year to $39.46 trillion.
The year had a “rocky start” in equity markets, said investment management consultant Neil Rue, a managing director with Pension Consulting Alliance, Portland, Ore. “The beginning of January 2016 was one of the worst equity market experiences in history,” he said. And after January, the market stagnated. “Things were languishing right up until the election, and then you got a strong bump in the equity markets as a result of the election,” said Mr. Rue. “It was a very nice snapback.”
The Standard & Poor's 500 returned 3.88% through Nov. 4, but closed the year up 11.96%.
The increase in worldwide institutional assets among the managers in P&I's universe follows a sluggish 2015, when volatile markets and declining oil prices reduced institutional assets by 2.8%. “Part of 2016 was just recovery,” Mr. Rue said.
Overall, worldwide assets of the 583 managers responding to P&I's survey rose 9.1% to $58.77 trillion in 2016. Worldwide institutional assets rose 9.2% among that universe, to $39.48 trillion.
U.S. institutional tax-exempt assets overall rose 7.5% to $15.2 trillion, while internally managed U.S. institutional tax-exempt assets rose $7.7% to $13.69 trillion.