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

July 26, 2007 ( - International equity products outperformed their U.S. counterparts over the past year, according to an analysis of Morningstar's database of separate accounts.

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. or call 203-899-3012 .