Coming off a third quarter that saw positive net capital inflows by institutions across all security regions, the fourth quar ter of 2015 saw this momentum retreat slightly as the North America and Latin America security regions posted marginal outflows during the quarter. Moreover, equity flows into the Middle East/Africa region claimed the top spot from Japan in the fourth quarter, ending Japan’s four quarter streak at the to p, after posting an increase of 2.7% relative to the 1.6% posted by Japan. Specifically, securities in the North America region saw an outflow of 0.1%, while those in the Latin America region saw a marginal decline of less than 0.1%. Furthermore, the Middle East/Africa region notched the largest inflow of the quarter with an increase of 8.8% in North American securities, while the largest outflow came from Japan’s rotation out of Latin American securities.
Elsewhere, the Asia/Pacific region excluding Japan posted the largest increase in portfolio allocation (+0.5%), coming off a decrease of 1.3% in the prior quarter; the only other region to post an increase in portfolio allocation was Japan’s 0.2% increase. While most changes in allocation remained relatively modest, North America’s 0.3% drop was the largest across all regions.