Institutions continued the buying momentum from Q1 to Q2 as all security regions recorded net capital inflows during the period. Japan took the top spot this quarter, posting a 3.9% increase and maintaining its position as the leading region on a percentage basis, a spot 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 has seen an economic contraction following an expansion in the previous quarter, as the country continues its quantitative easing program. Separately, Europe reported the quarter’s second largest net gain with a 2.2% increase following the prior-period’s 1.2% uptick, despite economic turmoil in Greece. Meanwhile, North America saw a 0.3% net inflow as the Fed decided to hold rates near zero once again. In terms of dollar value change, North America had the only decrease with a 0.6% drop in value as Japan saw an impressive 6.2% increase.
Elsewhere, European equities had the largest portfolio allocation increase (+0.31%), while Asia/Pacific ex Japan took the second spot (+0.25%). North American equities saw the only decrease in portfolio allocation (-0.80%), while Middle East/Africa remained flat for the period.