Institutional ownership review: Q4 2012 shows inflows in Materials, outflows in Info Tech and Financials
Feb 22, 2013
The ten largest money management countries (as denoted by an aggregate of equity assets in the country’s fifty largest institutional investment companies) showed a 0.8% increase in equity assets quarter-over-quarter. On the country-level, the Switzerland and United States country aggregates were the only aggregates to show a decline (-0.1% and -1.4%, respectively) in equity assets, while the Chinese country aggregate showed the largest percentage increase (+13.1%) in Q4. However, the United States country aggregate continues to dominate the ten-country composite—its $7,747 billion in equity assets represents 60% of the total $12,814 billion for the top ten country aggregates. As a result, U.S. institutions’ bearishness in domestic equities translated to U.S. equity outflows in the ten-country composite for the second consecutive quarter. While most other country aggregates disagreed with this sentiment and added to American equities in Q4, three country aggregates echoed the actions of the U.S. institutions and removed significant equity exposure from the U.S.: the United Kingdom, Japan, and China. However, it’s interesting to note that the largest single-security purchase for the top ten country aggregates was a U.S.-domiciled equity: Eaton Corporation PLC. The diversified power management company received inflows of $10.3 billion, which was more than double that of the inflows of the next largest equity (Novartis AG with $4.2 billion in inflows).
On the sector-level, the top ten country aggregates were most bullish in the Materials sector and most bearish in the Information Technology and Financials sectors. Driving the trend in the Materials sector were significant inflows to BHP Billiton PLC (+$5.2 billion) and a number of Canadian gold mining stocks, including Goldcorp Inc., Barrick Gold Corp., Kinross Gold Corp., Eldorado Gold Corp., Agnico-Eagle Mines Ltd., Yamana Gold Inc., New Gold Inc., and IAMGOLD Corp. (combined inflows of $10.5 billion). The Information Technology sector, meanwhile, suffered from outflows out of Apple Inc. (-$6.0 billion) and Oracle Corp. (-$4.4 billion), and the Financials sector experienced aggregate outflows for the fifth consecutive quarter.
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