Institutions continued the buying momentum from Q4 to Q1 as all security regions recorded net capital inflows during the period. Japan took the top spot this quarter, posting a 1.5% increase and maintaining its supremacy as the leading region on a percentage basis, a position it has held since Q3 2013 aside from being overtaken by Asia/Pacific ex. Japan in Q3 2014. The increase for Japanese equities comes at a time that the country saw an economic expansion following two consecutive quarters of economic contraction. Separately, Europe reported the quarter’s second largest net gain with a 1.2% increase following the prior-period’s soft 0.1% uptick, despite a struggling Greek economy. Meanwhile, North America saw a 0.4% net inflow as the U.S continues to await a rate hike from the Federal Reserve amid low unemployment and promising economic data. In terms of dollar value change, Latin America had a downtrodden period with a sharp 11.2% decrease in value as Japan saw an impressive 10.4% rise.
Elsewhere, Asia/Pacific ex. Japan had the largest portfolio allocation increase (+0.46%), following the prior period’s ascent (+0.41%). North America saw the largest decrease in portfolio allocation (-0.70%) while Latin America was the region with the second largest drop (-0.16%).