Global Equity in the First Quarter of 2018

Ipreo’s Global Equity Assets Report is back with a look at institutional investment trends for the first quarter of 2018.

Due to the release time-frame for the data summarized within the report, which included institutional investment across all countries, regions, and sectors, the GEAR, which publishes quarterly, is always behind. Which explains why today’s report covering the first three months of 2018 is coming at you just before Halloween.

After the fourth quarter of 2017 saw five of the world’s largest economies suffer, including the U.S. despite increased consumer spending, the first quarter of 2018 saw more mixed results. The U.S.’s GDP continued to decline, with its GDP shrinking to 2.0% from the previous quarter’s 2.9%, largely due to a weak performance in consumer spending, which was moving at the slowest pace since the second quarter of 2013. The slowdown was partially due to increased interest rates, along with heightened fears of a future trade war with U.S allies. Proposed tariffs created uncertainty around the world, leading the stock market and investors through an extremely volatile quarter.

Despite five of the global sectors seeing outflows, four saw inflows, with the Utilities sector seeing the largest growth with a 1.4% increase. It was joined by Basic Materials, Financials, and Industrials on the positive side of things, whereas Consumer Services, Healthcare, Energy, Tech, and Consumer Goods were on the negative side of the ledger. Regionally, Europe, Japan, Latin America, and the MIddle East/Africa saw their equity assets increase, with North America and Asia/Pacific going the other way, with North America’s 1.25% decline marking a nearly 7% fall from Q4 2017’s 5.7% increase.

Meanwhile, the ultra-low unemployment rate along with steady job and wage growth seen in the first quarter suggest that this trend will continue throughout the rest of 2018. We’ll find out in the next edition of GEAR.

The Global Equity Assets Report is published quarterly, and covers institutional investment across all 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 2018 issue.