Q1 2019 reveals market gains & increased investor confidence

CAMRADATA, a leading provider of data and analysis for institutional investors, has published its investment reports for Q1 2019, which provide analysis of four asset classes – Diversified Growth Funds, Multi Sector Fixed Income, Emerging Markets Equity and Emerging Markets Debt – invested in by institutional investors in the market.

In each report over three years’ worth of data from CAMRADATA Live (its online manager research platform) at 31 March 2019 was analysed to produce the four reports revealing key investment trends for Q1.

The first quarter of 2019 brought a more positive outlook for investors, after a difficult end to 2018. Investors were encouraged by signs of a possible (albeit temporary) thaw in US-China trade tensions and by signals from the US central bank that further interest rate rises are unlikely during 2019.

Despite the positive performance across the four asset classes, investors continued to withdraw money from these universes with only the EMD universe managing to attract positive inflows during the quarter. However, positive performance across all four asset classes meant that only the MSFI universe saw assets under management decline over the quarter.

Sean Thompson, Managing Director, CAMRADATA said, “With concerns over economic slowdown; the Federal Reserve and the ECB signalled that further rate increases are unlikely before the year end and steps to unwind their long-running liquidity support programmes will be put on hold during 2019.

“This provided a boost to risk assets, with international equities, commodities and high-yield corporate debt markets all making significant gains. Emerging markets equities also rallied in Q1, driven by softer monetary signals from the US Federal Reserve and temporary hopes of a solution to US-China trade tensions.”

Below are the Q1 2019 highlights in each asset class:

Diversified Growth Funds

  • Over the last quarter the DGF universe has seen £4.56bn in net outflows, marking the sixth consecutive quarter in which asset flows in the universe have been negative
  • Since Q4 2018 DGF assets under management increased by £1.70bn after a decrease of over £11.5bn in AuM during Q4 2018
  • Aviva Investors achieved the largest asset inflows with £2,216m in Q1 2019. HSBC Global Asset Management was the runner up with £485m of inflows, followed by DWS, Baillie Gifford & Co., and River and Mercantile Group

Emerging Market Equity

  • Since Q4 2018 assets under management have increased by just over $54bn, in the Emerging Market Equity universe, which can be attributed to the performance of the universe over the quarter
  • Despite the positive performance the EME universe saw negative outflows of just over $620m
  • Walter Scott & Partners achieved the largest percentage growth in AuM with their assets increasing by 137.2%, followed by Global Thematic Partners, Baillie Gifford & Co., Allianz Global Investors and Ashmore Group

Multi Sector Fixed Income

  • Since Q4 2018 MSFI absolute return assets under management have decreased by just over £3.9bn
  • Over the last quarter the MSFI universe saw net outflows of just over £6.03bn. This marks the third successive quarter that asset flows have been negative in this universe
  • Loomis Sayles achieved the largest asset inflows, with inflows totalling £225m, in converted sterling, during Q1 2019. They were followed by NN Investment Partners, Manulife Investment Management, Wellington Management International and BlueBay Asset Management

Emerging Markets Debt

  • The AuM in the EMD universe as at 31 March 2019 sits at $257.77bn, meaning the EMD universe has seen assets under management increase over $19.1bn since Q4 2018
  • Over the last quarter the EMD universe saw net inflows totalling just over $5.87bn, reversing the trend from the previous three quarters
  • Capital Group had the largest asset inflows totalling $807m during the quarter. They were followed by Fidelity International, Vontobel Asset Management, Franklin Templeton Investments and Wellington Management International

Sean Thompson concludes, “Each report has detailed analysis and commentary for these four asset classes for the start of 2019, which are essential reading for investors looking to keep abreast of what is happening in the markets.

“CAMRADATA Live monitors the strategies of asset managers, keeping investors up to date on what’s happening across hundreds of asset classes and helping them make more informed investment decisions.”

To view these reports please click here or for more information please contact info@camradata.com