The most common active strategies held by defined contribution participants lost a combined $170 billion in the fourth quarter of 2018. The five most popular active U.S. equity strategies fell on average 15.5%, or 14.8% asset-weighted, while their international equity peers fell an average 11.6%, or 12.1% on an asset-weighted basis. Active bond strategies stayed just above water with an 0.8% return, both equal and asset-weighted.
Principal Global investors Total Return Bond fund was the only strategy among the group that did not lose assets over the period, adding $175 million on a quarterly return of 1.4%. PIMCO’s income fund was the only fund to end the full year with a positive return.