So we definitely saw lower sales, but also elevated withdrawals in our retail mutual fund business. And we’re not unique in the industry as a result of that. We definitely have seen outflows in fourth quarter. They were in equities predominantly, but also in fixed income. We also experienced in the fourth quarter, Jimmy, I think, a slowdown in real estate for the first time in terms of new investment activity. But I rest assured we have a very deep strong pipeline of committed capital in real estate. But given market conditions, we did not deploy as much of that new capital into the markets in the fourth quarter. Just for framing, for net cash flow for the full year, we continue to see a very strong net cash flow picture. And I think that’s a better view of a net cash flow in terms of trends, we are very pleased to see that managed net cash flow for the year, about $3.9 billion, Jimmy.
And this is up about $1 billion from 2021, which net cash flow of around $2.9 billion. So we continue to see, I think, some strong longer term, I think expectations toward our ability to generate net cash flow. Dan, as we highlights beginning of the year, we definitely are seeing a change in sentiment. Investor behavior is becoming, I think, a more sort of positive in terms of tone, both in the equity particular in the fixed income markets. And I think one area that I think we’re going to be, I think, quite well prepared and well, I think, equipped in terms of the is in terms of fixed income investments in the flows towards that. We have a great lineup of fixed income investments, where it’s preferred high yield emerging market debt, and all those fixed income investments are in the first quartile in terms of Morningstar performance on one, three and five-year basis.
And I think we’ll continue to see flows in the real estate debt and the private credit space where we still have, I think, some very strong performance. So I think as we kind of look forward in terms of 2023 I think we’re well positioned in terms of our ability with the investment performance that we have to continue to attract capital. We’ll probably see our real estate flows be a little bit more second half orientated, because I think we need to have some of the, like, evaluations. But I’ll just suggest to you Jimmy that performance is absolutely on our focus list. But it really requires us to be more deeper when we talk about investment performance to look at the type of investments we are absolutely seeing money in motion toward. And the trend relative to that is definitely in our direction in terms of our capabilities.
So very constructive, I think we have a strong off-season lineup in terms of investment capabilities and look forward to capturing the shifts in the investor sentiment, which is quite positive at this point.
Dan Houston: Thanks, Pat. Chris, some additional highlights on RIS.
Chris Littlefield: Yes, great. Yes. Thanks for the question, Jimmy. So I think as Dan mentioned, as we’ve indicated in the past, the fourth quarter is a high outflow quarter for us as plans change a lot. And similarly we see the opposite effect in the first quarter as sales come on. The other thing I’d noticed that when we have institutional large plans flows, those can be volatile and lumpy in a quarter, both on the deposit side and withdrawal side. And we certainly saw that in the fourth quarter with that single low fee large plan, which was about $3 billion in assets, none of which were managed by Principal. So we definitely saw that volatility. I mean, I think as we’ve talked about it, net cash flow is one lens, but we also look at the underlying fundamentals of the business and how we’re doing in earning Principal investment management mandates.
