Global Equity in the Third Quarter of 2016

Now that 2016 has closed out, much of the world is already looking ahead to what 2017 will bring. Often, there’s no better indicator of future behavior than recent history, so before we turn the page, we wanted to look back at some of Q3 2016’s global trends, using our Global Equity Assets Report.

Ipreo’s GEAR is published quarterly, and covers institutional investment across all countries, regions, and sectors. Due to the release time-frame for the data summarized within the report, publication is always one quarter behind.

This issue, covering July, August, and September of 2016, takes a deep dive into the North America region. The region was on a bit of a roller coaster ride in 2016, rising slightly in Q1, falling in Q2, and now rising again in the third quarter, as equity investment in North America saw a sizable inflow of $74.7B (after Q2’s $15.4B decline). The United States bumped Canada aside to be the quarter’s top buyer, adding $38.2B to its holdings, including large inflows from The Vanguard Group (+$43.3B) and BlackRock Fund Advisors (+$25.4B).

Overall, capital flows by region were mostly positive in Q3, with Latin America taking the top spot in equity flows with a 1.1% increase, and Japan staying strong, posting a 0.8% inflow for the quarter, following its 1.0% uptick in the second. Meanwhile, Europe saw the only outflow, posting a loss of 0.5%.

The latest GEAR also drills down into global investor activity in all nine macro sectors. Looking ahead, the final GEAR report will give us the full picture of how the global markets responded to and generally weathered what – between “Brexit,” the U.S. presidential election, and more – proved to be a rather tumultuous year.

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 Q3 2016 issue.