Colombian AFP pension managers added to emerging markets bonds and North American equities once again in October 2020, on the hunt for bargains in a month that saw declines for two of their favorite asset classes.
The buying came as the S&P 500 slumped 2.7% in the month leading into the US presidential election.
Barclays noted a slowing pace of global economic recovery in October as household demand for goods approached its limits and manufacturing output became better aligned with demand.
“US elections are likely to have limited implications for the economy and the politics of the [Latin America] region,” the bank’s economists said in an Oct. 23 note to clients.
In all, cross-border funds and ETFs attracted USD 758 million from the Colombian AFPs in October. Equity funds picked up USD 419 million in assets while fixed-income funds attracted USD 374 million.
Cross-border funds finished the month with USD 22.2 billion in Colombian pension assets under management.
Adding to North American equity, emerging-markets bonds
Across categories, North American equity saw the biggest inflows, taking in USD 383 million for USD 6.5 billion in total AUM.
iShares Core S&P 500 led inflows among North American equity funds, attracting USD 167 million in October. That same fund posted a negative return of 2.6% in the month.
The next-biggest inflows went to emerging markets bonds, which absorbed USD 365 million in October for USD 1.6 billion in total AUM.
iShares JP Morgan $ Emerging Markets Bond gathered the most assets for that category for a second consecutive month, receiving USD 186 million.
Market leaders
Among top brands, iShares added USD 445 million from the AFPs in October, giving it USD 10.1 billion under management and a 45.8% market share.
Number two Vanguard shed a modest USD 10 million to end the month with USD 2.3 billion in AUM and a 10.5% market share.
State Street consolidated its place in third with USD 208 million coming in, for USD 2 billion in total AUM and a 9.2% market share.
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