Global Equity in the Second Quarter of 2017

Ipreo’s Global Equity Assets Report is robust.

The GEAR is published quarterly, and looks at institutional investment across all countries, regions, and sectors, and due to the release time-frame for the data summarized within the report, publication is always a quarter behind. This explains why, smack dab in the middle of 2017’s fourth quarter, we’re just now getting around to covering the Global Equity Assets Report for the year’s second quarter.

The last report focused on how the markets reacted to the earliest days of President Trump’s administration, as well as other developments that occurred on the world economic stage at the start of 2017, and as GEAR progresses further into the year, many of the same issues remain. But so does the good news.

The global markets saw their quickest pace of growth in more than two years (Q1’15), thanks in part to the U.S. economy notching a 3.1% GDP increase as a result of strong retail sales and business spending. Participants remained optimistic, downplaying reports of potential collusion between Trump associates and Russia, and responding positively to Emmanuel Macron’s victory in the French presidential election.

Every quarter, the GEAR drills down into North America’s economic activity and dives deep into global investor activity in all nine macro sectors. In Q2, North America, like Q1, saw eight of the nine sectors receive net inflows. Last time, Healthcare was the outlier, whereas here only Basic Materials posted a withdrawal ($8.8B), while Energy realized $16.2M in inflows even as cheaper oil flows caused the sector to trade 5.7% lower.

As a whole, North American equities brought in $149.5B in inflows, only a small decline from the $150.7B inflow the first quarter delivered.

Globally, all six geographical regions recorded net capital inflows, repeating the first quarter’s steady growth. Japan saw the largest inflow, with a 1.7% increase, whereas Europe saw the smallest at only 0.4%; a meager increase, but a far cry from the region’s tiny 0.1% of growth in Q1.

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 Q2 2017 issue.