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Institutional asset managers suffer net outflows of US$95.4b in Q1

[LONDON] Institutional asset managers worldwide suffered net outflows of US$95.4 billion in the first quarter of 2016, data from research provider eVestment showed on Thursday, with equity strategies seeing the biggest outflows.

The group, which tracks more than US$37 trillion in institutional money globally, bases the report on data reported to it by asset managers overseeing money for pension funds, insurers, sovereign wealth funds and foundations.

Equity strategies reported US$58.6 billion of net outflows in the first quarter, their 12th consecutive quarter of redemptions, the report showed. The bulk of the outflows came in actively managed portfolios, which lost US$70.5 billion, whilst passive equity strategies attracted net inflows of US$11.9 billion.

Fixed income strategies reported outflows totalling US$26.7 billion, up from US$19.7 billion in the fourth quarter of 2015. "Industry wide outflows are evidence of investors seeking opportunities in alternative investments or holding on to cash,"eVestment said in the quarterly report.

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Sovereign wealth funds (SWFs) continued to be net sellers in the first quarter, with outflows of US$8.8 billion, following outflows of US$8.9 billion in the fourth quarter.

SWF redemptions were led by US$2.7 billion in net outflows from Japanese equities, which had enjoyed US$906 million of net inflows in the fourth quarter.

Emerging equities saw outflowes for the fourth consecutive quarter, eVestment said, without giving a number. It said outflows over the past year had totalled US$30 billion.