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Asset Migrations

j3

19/12/2018

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We always look at prices to understand the evolution of markets. But, what about the movement of capital in investment funds? How much cash flows from certain funds to others? In this post, we take a look at asset migrations.

To better understand how investors move their money among the different asset classes in this post we analyse 3 graphs that bring light to this topic. In each case, we observe the percent of assets relative to the total amount at each date. 

The movement in risk families shows an increase in Money Market funds during the financial crisis. Also, the relative increase of the risk family Alternative is significant, where Real Estate Funds, amongst others, are included.

Asset Migrations divided by risk families

Now let’s observe the evolution within geographical regions. North America is the region that attracts more investment. This is increasing during recent years meanwhile it is decreasing in Europe. 

Asset Migrations divided by geographic regions

And finally the exposure evolution by sector. There is a very good balance between sectors. Although, Materials is one of the most invested sectors. The assets in Utilities is also increasing gradually.

Asset Migrations divided by sectors

Happy New Year and place your bets for 2019.