Global Equity in the Fourth Quarter of 2017

Ipreo’s Global Equity Assets Report is back with a look at institutional investment trends for the fourth quarter of 2017.

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 a quarter behind. Which explains why today’s report covering the fall and winter of 2017 is coming at you just after the unofficial start of summer in 2018.

The global performance during the final quarter of 2017 did not manage to maintain the momentum of the previous two quarters, as global markets started losing steam as the year came to an end.

The fourth quarter saw GDP growth in every region worldwide, including the United States, which registered a 3.2% increase despite weathering two major hurricanes. That didn’t last this time around, as the five largest economies suffered a decrease in their GDP growth rate, including the U.S., which saw increased consumer spending, thanks to the massive tax cuts that came down from President Trump.

On the bright side, for the second quarter in a row, every region experienced an increase in equity assets. Middle East/Africa’s 8.3% increase didn’t quite match last quarter’s insane 10.4% boost in Latin America but it was enough to lead the pack, which more than tripled its third quarter increase.

Looking at the sectors, five came away with net inflows, with Basic Materials and Consumer Services at the top of the list, rising by 5.2% and 4.2% respectively. Energy, Financials, Tech and Utilities all suffered from outflows.

Due to a volatile political environment, there remains a lot of uncertainty, but it’s clear the global markets are paying attention, particularly in regards to a potential trade war between the U.S. and China. Given the uncertainty alone is affecting things, who knows what will happen when it all shakes out.

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 Q4 2017 issue.