Tue, 20/12/2016 - 13:19
UK, US and European equities markets saw good returns in the third quarter of 2016, according to Camradata, a provider of data and analysis for institutional investors.
However, there was a continued retreat from investors in the global equities market.
Camradata’s analysis covers six asset classes – global equity, emerging markets, UK equity, diversified growth funds, multi sector fixed income and emerging markets debt.
Sean Thompson (pictured), managing director, Camradata says: “Liquidity remains abundant, boosted most notably in the third quarter by the Bank of England’s new stimulatory measures. These measures and the generally positive economic news, prompted good returns for all major equity and bond markets. The ongoing delay in US interest rate rises also helped buoy risk assets.
“Whilst Sterling lost value over the period this was much less pronounced than the sharp fall at the end of June and resulted in the returns to a UK based investor of unhedged overseas assets being greater than in hedged terms.”
The Multi Sector Fixed Income (MSFI) market posted particularly positive results.
Assets under management in the MSFI Absolute Return universe (which includes 70 products) was just under GBP71.5 billion at 30 September 2016. In Q3 2016 MSFI Absolute Return products achieved positive inflows of just under GBP2.4 billion across the universe. The top performing asset managers were Western Asset Management, which had the largest asset inflows totalling GBP507 million, in converted sterling, during the quarter, and Cameron Hume, which achieved the largest percentage growth, seeing its assets increase by 273.14 per cent during Q3 2016.
Thompson says: “In the MSFI market, nearly 94 per cent of products achieved a breakeven or positive return in the quarter. Whilst almost 95 per cent of products achieved a breakeven or positive return over a three year period, highlighting that the MSFI Absolute Return universe continues to show positive outcomes.”
The global equities report tells a different story. In spite of positive growth and good returns, investors reduced their allocation in the market for the fifth quarter in a row, with outflows during Q3 totalling USD3.38 billion.
Thompson says: “In the third quarter we saw investors pulling money out of the global equities market. However, we also saw growth in other areas. In Q3 2016 emerging market debt products achieved positive inflows of just under GBP2.51 billion across the universe, the first time there has been inflows seen in a quarter since Q2 2015.
“As we move into 2017, the key themes will be uncertainty across global markets with the arrival of the new administration in the US, elections across Europe, Brexit negotiations, as well as rising interest rates in the US.”
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