Q3 2018 reveals volatility in both equities and bonds
CAMRADATA’s Investment Research Reports for Q3 2018 reveal volatility in both equities and bonds…
CAMRADATA, a leading provider of data and analysis for institutional investors, has published its investment reports for Q3 2018, which chart the performance of investments and asset managers across six asset classes – Global Equity, Diversified Growth Funds, Multi Sector Fixed Income, Emerging Markets Equity, UK Equity and Emerging Markets Debt.
In each report over three years’ worth of data from CAMRADATA Live (its online manager research platform) at 30 September 2018 was analysed to produce the six reports to reveal the key investments trends for Q3.
Q3 had the feel of a gathering storm. Although key indicators such as the US stock market continued a consistent ascent, there were reports of a developing trade war between the US and China.
Growth in the US economy slowed from 4% in Q2 to 3.5% in the three months ending 30 September 2018, while the British economy achieved its highest growth rate since 2016 in the third quarter, thanks to a brief economic boom in July.
The dollar strengthened against emerging market currencies, putting pressure on borrowers in these markets. Analysts also warned that equity growth was unsustainable and that a correction was on the horizon.
Sean Thompson, Managing Director, CAMRADATA said, “The storm broke in October, with a market rout that stripped value from equities and bonds alike. Although economic growth in most major markets remains strong, investors are opting for a more cautious positioning as they look ahead to 2019. Defensive stocks are being chosen in preference to growth stocks and many portfolio managers are increasing their holdings of cash.”
Here are the Q3 highlights in each asset class:
- Over the last quarter the Global Equity universe saw net inflows, which totalled $2.59bn.
- Q3 2018 saw a decrease of positive performance with 89.5% of products achieving a breakeven or positive return, compared to 98% in Q2 2018.
- Calamos Investments achieved the largest percentage growth in AuM seeing its assets increase by 89.55%, followed by followed by EFG, Union Bancaire Privée, Global Alpha Capital and Pyrford International.
Emerging Market Equity
- Over the last quarter, the EME universe saw positive inflows which totalled just over $4.8bn.
- In Q3 2018, just under 22% of managers achieved positive returns in the Emerging Market Equity universe. The lowest return produced is -13.06% and the best performing product achieved 4.4%.
- ClariVest Asset Management achieved the largest percentage growth in AuM with its assets increasing by 109.04%, followed by GQG, Fiera Capital, Putnam Investments and RVX Asset Management.
Diversified Growth Funds
- Q3 2018 saw an increase of positive performance, with over 78% of products achieving a breakeven or positive return, compared to 74% in Q2 2018.
- Since Q2 2018, DGF assets have decreased by £4.11bn following the trend from Q2 2018
- AQR Capital Management again achieved the largest asset inflows with £761m in Q3 2018. Baillie Gifford was the runner up with £456m, followed by Threadneedle, LGT Vestra and HSBC Global Asset. .Management.
Multi Sector Fixed Income
- In Q3 2018 these funds gathered a net £0.3 billion, making the period the tenth consecutive quarter in which this asset class, as tracked by CAMRADATA, enjoyed a positive balance of investor allocations.
- Since Q2 2018 MSFI absolute return assets have decreased by just under £0.5bn
- Natixis Investment Managers again achieved the largest asset inflows, with inflows totalling £1,015m, in converted sterling, during Q3 2018, followed by Payden & Rygel, Aviva Investors, PGIM Fixed Income and Insight Investment Management.
Emerging Market Debt
- Over the last quarter the EMD universe saw net outflows totalling just over $2.24bn, continuing the trend from Q2 2018.
- Q3 2018 saw an increase of positive performance, with 61% of products achieving a breakeven or positive return, compared to 59% in Q2 2018.
- TCW had the largest asset inflows totalling $1,073m during the quarter. It was followed by T Rowe Price, Wellington Management, Ashmore Group and UBS Asset Management.
- UK equities continued to see outflows this quarter with £5.3bn having been withdrawn. In fact, this asset class has now seen outflows of assets in each of the past 14 quarters.
- In Q3 2018 the UK Equity universe saw only 19% of managers produce a positive performance. The lowest quarterly return produced is -6.63% and the best performing product achieved 3.22% returns.
- Slater Investments took the top spot in the asset manager inflows table with £48m inflows in Q3 2018, followed by Franklin Templeton, Aberdeen Standard, SVM and J.P. Morgan.
Sean Thompson concludes, “For more detailed analysis and commentary on data and trends, investors should read the individuals reports on these six asset classes. They are essential reading every quarter for investors and will ensure they keep on top of what is happening in the markets.
“Investors can also keep abreast of issues likely to affect the markets using CAMRADATA Live. This tool monitors the strategies of asset managers, keeping investors up to date with what’s happening across hundreds of asset classes and helping ensure they make informed investment decisions.”