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Australia most active region in Q2: Research

New research has revealed that Australians were the most active institutional investment community within the Asia Pacific region in the second quarter of the year, with interest directed to long-only Australian equity strategies.

The research, by institutional asset management focused research house eVestment, tracked the product and profile views of investors and consultants across the region.

The most viewed strategies by Australian investors were long only Australian equity strategies, followed by global all cap growth equity strategies.

Our third, fourth and fifth most viewed strategies were global all cap core equity, global large cap core equity and global large cap value equity strategies.

The research also found that net flows for APAC managers' traditional strategies were negative in the second quarter of the year, for the second consecutive quarter.

This comes after a relatively consistent stretch of positive investor interest since the beginning of 2017, eVestment said.

Interestingly, the research house found that the largest driver of inflows in the second quarter was allocations into Japan passive equity strategies.

Redemptions from APAC managers were also mainly from Japan-focused strategies, across both equity and fixed income segments, eVestment found.

While Chinese equities was one of the most positively trending investment universes, APAC-domiciled offshore Chinese equity managers saw net outflows in the second quarter.

Global equity strategies were the most heavily and widely viewed products by investors within the region in the second quarter, with particularly high interest in global all cap core strategies from Japanese, Australian, Indian, Singaporean and South Korean investors.

Global all cap growth strategies also experienced similar interest, but with the majority of views coming from China.

Of note, investment product views within Hong Kong (primarily in Chinese and US equities) were not shared by any other APAC region, eVestment said.

This was the only location with viewership interest completely unique to the region.

Among the top five positively trending investment universes, two were Asia ex-Japan equity strategies, with no fixed income strategies making the top five.

The top five strategies were Japan small cap equities, Asia ex-Japan all cap core, diversified growth funds, global emerging market all cap core and Asia ex-Japan large cap strategies.

Asia ex-Japan all cap core equity strategies saw $231 million in net inflows and $509 in net outflows for the quarter, with the largest flows coming from Hermes Asia ex-Japan Equity, Fidelity Asia ex Japan Equity and Martin Currie Asia Long-Term Unconstrained Equity.

Global emerging markets all cap core equity saw $8.1 billion in net inflows for the quarter, while it saw $13.2 billion in outflows.

The biggest flows for the quarter in this strategy were in Arrowstreet Emerging Markets Equity, UBS Emerging Markets Equity HALO and Dimensional Emerging Markets All Cap Core Strategies.

Asia ex-Japan large cap equity reported $636.8 million in net inflows for the quarter, with $801 million in net outflows. Maple-Brown Abbott Asia Equity, JPM Asia Growth and First State Asia Equity Leaders strategies experienced the biggest flows during the quarter in this universe.

Japan small cap equity strategies saw $67.5 million in net inflows for the quarter, while it experienced $632.6 million in total net outflows. Dimensional's Japanese Small Cap Strategy, Ichiyoshi Small and Mid Cap Equities Fund, and DS_Japan Equity Small Cap Absolute Value were found to have had the largest flows during the quarter.

eVestment found that net inflows in diversified growth funds were $1.6 billion for the quarter, while net outflows were $3.9 billion. The funds with the largest flows for the quarter were BlackRock Market Advantage (Risk Parity), Amundi Italian Global Balanced Strategy and M&G Lux Dynamic Allocation.

Read more: ResearcheVestment
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