Non-U.S. Equity Products Continue Outdoing U.S. Counterparts

According to the report that analyzes 4,000 separate accounts in Morningstar’s Institutional Investor Exchange database, products in the U.S. Equity asset class saw $105 billion in net outflows over the past year, ending in the first quarter of 2007.

Demand for non-U.S. equity products slowed, showing a total outflow of $8 billion over the past four quarters, the report showed. Net flows to products in the Global Equity peer group attracted $34 billion over the past four quarters.

Fixed Income products continue to see inflows, experiencing $61 billion of inflows over the past year ending in the first quarter of 2007. Global and International Bond products continue to gain assets, including $12 billion over the same period.

Over the past four quarters, the Long Duration Fixed Income peer group experienced $13 billion in positive flows, bringing the three-year total to $35 billion. For High Yield Fixed Income, outflows were $14 billion and totaled $27 billion over the past two years.

International Equity products outperformed U.S. Equity products. The median International Small Cap, Emerging Markets Equity and European Equity products all returned greater than 20% over the past four quarters.

High Yield Fixed Income and Emerging Market Debt continue to be top performers. The median High Yield Fixed Income product returned 10.8% and the median Emerging Market Debt product returned 12.4% over the past four quarters.

For a copy of the report, e-mail Philip Kim at Casey, Quirk & Associates at.    p.kim@caseyquirk.com or call 203-899-3012 .