Global Equity in the Third Quarter of 2017

Ipreo’s Global Equity Assets Report is back with a look at institutional investment trends for the third 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 is emerging at the end of what feels like the longest January on record.

Before we finally sneak into the second month of 2018, let’s look back at the global performance during the third quarter of 2017.

The second quarter of 2017 was a good one, as the global markets saw their quickest pace of growth in more than two years (Q1’15), and now we turn the calendar to the latter half of the year to see if the positive momentum continued. And it did!

Global markets continued to surge following third-quarter GDP growth in every region worldwide. The U.S. economy registered a GDP increase of 3.2%, increasing slightly from the prior-quarter’s 3.1% GDP increase and besting the 2.8% increase seen in the prior-year period. The GDP gains are especially impressive, coming as they did in the direct aftermath of two devastating hurricanes, Harvey and Irma, which caused a loss of 33,000 jobs in September – the first time in seven years that the economy had recorded a monthly fall in employment.

Every region experienced an increase in equity assets, with Latin America’s enormous 10.4% boost topping the list, one quarter after the region actually saw a 2.8% decrease. In the U.S., equity assets registered an increase of 5.0%, picking up steam from the prior-quarter’s 3.0% increase and beating the 4.3% increase seen in the third quarter of 2016.

Sector-wise, all nine realized net inflows, with Technology and Utilities leading the way with surges of 1.7% and 1.4%, respectively.

Politics played a significant role in the shifting fortunes of the economy, with corporate profits surging 5.7% in anticipating of the Trump administration’s new tax plan, while Germany weathered some upheaval after Chancellor Angela Merkel was re-elected amid her party’s worst electoral performance since 1949. Whether or not these developments play a part in Q4’s performance won’t be known until the next issue of GEAR is published in April.

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 2017 issue.