Traditional manager terminations up in 2019
Terminations of equity and fixed-income managers has already surpassed those of 2018. Institutional investors terminated 205 equity managers and 43 fixed-income managers year-to-date through Sept. 17, according to data collected by Pensions & Investments' Research Center. The data also show that 274 new equity mandates were given, and 80 fixed-income allocations were made. Equity hires are on pace to exceed their 2018 numbers.
Asset amounts are not announced for every action, but $7.6 billion in equity assets were terminated so far this year; $26.2 billion were reported as hired, or allocated to new equity managers; however, assets associated with hires are more often announced than terminations.
Private equity hires led the three major alternative asset classes with 631 so far this year, below 801 in 2018. The declining interest in hedge funds continue, while real estate hires are on pace for a five-year low. Of those hires that reported allocation amounts, more than $106 billion has been committed to private equity funds this year.