Global Equity in the First Quarter of 2016

It’s probably a bit of an understatement to say that there is a lot going on in Europe these days. Of course, that is usually the case, referendums or no. To wit, the latest issue of the Ipreo Global Equity Assets Report, covering the first quarter of 2016, drills down into the European region and has a lot to say about what was happening before Brexit hit the news.

Ipreo’s GEAR is published quarterly, and covers institutional investment across global money centers, countries, regions, and sectors. Due to the release timeframe for the data summarized within the report, publication is always one quarter behind, which means we’ll have to wait to see what impact the UK’s decision to leave the European Union has on institutional investment in the region.

This issue, covering the first three months of the year, takes a deep dive into Europe and sees that global macroeconomic concerns already saw investment activity in European equities fall sharply. The $8.8B of inflows was a huge drop from Q4 2015’s $35.5B, with the U.S. and Germany leading the way as the top buyers.

Notably, the Middle East/Africa maintained its position as the region with the highest inflow (+0.2%) for the second consecutive month. By sector this quarter, Japan was the most bullish, increasing its holdings in every sector except for Energy. Conversely, North America was the most bearish region with outflows seen across every sector but Energy and Utilities.

The latest GEAR also drills down into global investor activity in the European region and the Industrials sector, and includes features on the global money centers of Atlanta and Frankfurt. It’s safe to say that Britain’s vote to leave the European Union is going to have reverberations across the global financial world for months, years, perhaps decades to come. We’re not there yet, but the Global Equity Assets Report will surely have a lot to say about it when we are.

The Global Equity Assets Report is published quarterly, and covers institutional investment across global money centers, countries, regions, and sectors. In an attempt to ensure that our data is as comprehensive and accurate as possible, the report pulls from a variety of sources, including publicly-disclosed information, collected from such sources as regulatory ownership filings (including SEC forms 13F/D/G), disclosures made by mutual funds / pension funds to their beneficiaries, registration statements, news releases, and other sources. It should be noted that regulatory filings and other ownership sources vary widely country-by-country as to their completeness and timeliness.

Read the entire GEAR Q1 2016 issue.