Institutional investor flows to Asia-Pacific ex-Japan equity and fixed-income strategies were negative in Q1, most notably in Asia-Pacific ex-Japan equity strategies, which saw net outflows of 5.5% YTD 2017. This is according to recent data reported in eVestment’s Traditional Asset Flows Report.

Asset managers reported long only institutional assets under management of US$24.2 trillion at the end of Q1 2017. Institutional investor flows were positive to start the year with aggregate net allocations of US$17.9 billion; flows for the past four quarters were still negative, measuring US$337.4 billion.

“Q1 2017 was largely net negative for country-specific and regional equity managers, among them U.S., Europe, Asia-Pacific, and U.K. strategies. U.S. equity managers continued to experience elevated outflows including US$53.5 billion during the most recent quarter,” says eVestments.

Institutional investment flows dropped in Asia-Pacific-ex Japan. As a percentage of prior period institutional AUM, fixed income saw outflows of 0.8% in Q1 2017, which contrasts to full-year percentage increases in allocation of 10% in both 2015 and 2016. Investment flows for equity were negative at -5.5% in Asia-Pacific ex-Japan, continuing the trend of outflows in 2015 (-10%) and 2016 (-8.8%).

“Within the greater current of outflows from U.S. equity strategies, institutional investors’ preference for value over growth has been playing out gradually over the past three to four quarters. Similarly, underlying outsized institutional demand for U.S. and global fixed income strategies was weakening support for high-yield strategies in these regions, and for corporates in other developed markets. Large-scale shifts in institutional preferences take time to coalesce – and if sentiment for equity style or credit exposure is truly changing, we are likely in the early innings,” says eVestments.