2022 was a remarkable year for investors around the globe. Some may call it a year for the history books. Major economic and geopolitical headwinds resulted in falling equity and fixed income markets around the globe. In the aftermath of the COVID-19 pandemic, investors were concerned about the still-disrupted delivery chains and increasing inflation rates when the year 2022 started. All these concerns became overshadowed by Russia’s invasion of Ukraine since this meant that investors had to rewrite their playbook for the year. The war in Ukraine led to increasing prices for energy and food, which fuelled the already increasing

The fund industry in the Arabian markets (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) faced overall estimated net outflows of $14.2 bn over the course of the first nine months of 2022. These inflows occurred in a negative and volatile market environment as central banks around the globe were fighting the increasing inflation rates with increasing interest rates and quantitative tightening measures. At the same time, economies around the globe faced further shortages within supply chains as the COVID-19 pandemic is further looming while prices for energy are further increasing, which led to fears that companies

Assets Under Management in the European Fund Industry Given the current situation in the economies around the globe it was no surprise that the European fund industry faced declining assets under management over the course of the year 2022 so far, as the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, disrupted delivery chains, increasing inflation, and interest rate hikes put some pressure on the securities markets. Within this environment the assets under management in the European fund industry decreased from €15.3 tr (as of December 31, 2021) to €13.3 tr at the end of Q2 2022. While ETFs

It was not surprising that May 2022 was in general a negative month for the European fund industry given the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, disrupted delivery chains, and the sluggish market environment. That said, the promoters of mutual funds (-€32.3 bn) faced outflows, while the promoters of ETFs (+€2.5 bn) enjoyed inflows. Within this market environment and given the economic uncertainties, one would expect that European investors sold long-term funds and bought money market products. Therefore, it is somewhat surprising that European investors further sold money market products (-€6.5 bn) over the course of May

It was not surprising that February 2022 was in general a negative month for the European fund industry given the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, and the sluggish market environment. That said, the promoters of mutual funds (-€67.6 bn) faced outflows, while the promoters of ETFs (+€9.2 bn) enjoyed inflows. Within this market environment and given the economic uncertainties, one would expect that European investors sold long-term funds and bought money market products. Therefore, it is somewhat surprising that European investors sold money market products, which are normally considered safe-haven investments. As a result, the overall

European investors were generally in a risk-on mode over the course of 2021 which could be seen by the fact that equity funds were the best-selling asset type overall. In fact, 2021 was a superb year for the European fund industry as the promoters of mutual funds and ETFs enjoyed record inflows (€724.1 bn) over the course of 2021. These inflows come despite the unclear economic situation caused by the ongoing COVID-19 pandemic, disruptions in the delivery chains of some industry sectors, and steadily rising inflation. That said, it is remarkable that 2021 was the second year in a row

European investors were generally in a risk-on mode over the course of the year 2021 despite the increased volatility in securities markets. Given the general market environment it was no surprise that we witness some months with mixed results for the flows within the different asset types, even as the European fund industry enjoyed inflows over the course of the first nine months of 2021. In more detail, the promoters of mutual funds enjoyed inflows of €337.0 bn. In line with this, the promoters of ETFs enjoyed record inflows of €126.9 bn over the course of the year so far.

European investors were in a risk-on mode over the course of June since the COVID-19 pandemic in Europe was easing further. Because of this, it was no surprise that June 2021 was another positive month for the European fund industry since the promoters of mutual funds (+€40.8 bn) and ETFs (+€14.3 bn) enjoyed inflows. The overall flow pattern in Europe showed that investors continued to be in risk-on mode in June. In more detail, investors bought further into risky assets as long-term funds (+€70.6 bn) enjoyed inflows, while money market products (-€15.5 bn) faced estimated net outflows. In line with

The coronavirus pandemic hit the European fund industry with declining markets and estimated net outflows of €125.9 bn in the first quarter of 2020. This trend reversed over the course of the second quarter as central banks and governments around the globe started quantitative easing programs and economic relief packages to cushion the economic drawdowns caused by the spread of the coronavirus and the lockdowns of economies around the globe. The measures taken led to a rebound of the equity markets accompanied by falling interest rates. The return to somewhat normal market circumstances led investors to buy back into mutual

In line with the general global trend regarding fund flows, the South African fund industry enjoyed estimated net inflows of $4.3 bn over the course of the first half of 2020. These inflows were kind of a surprise since the outbreak of the coronavirus pandemic and the global lockdowns of economies led to a massive drawdown on the equity markets during Q1 2020. This was countered, however, by very large cushioning packages of governments and quantitative easing programs of central banks around the globe. Nevertheless, the first half of 2020 was a tough time for the South African fund industry

European investors switched to a risk-off mode in March due to the global outbreak of the coronavirus and a possible recession caused by the lockdowns in a high number of countries around the world. As a result, investors faced an increased volatility on the global equity markets. Long-term mutual funds posted overall net outflows for the month. Commodity funds (+€2.2 bn) were the only asset type with net inflows for March. Conversely, bond funds (-€134.9 bn) faced the highest outflows overall, bettered by equity funds (-€48.9 bn), mixed-assets funds (-€38.7 bn), alternative UCITS funds (-€27.7 bn), real estate funds (-€1.5

The South African fund industry enjoyed estimated net inflows of $9 bn over the course of 2019. These inflows were way above the flows for 2018 ($3 bn) and occurred in a positive market environment with an increased volatility driven by discussions about a possible trade war between the U.S. and China, a possible return of the euro crisis caused by developments in Italy and France, and a general economic slowdown with decreasing earnings at the company level. Nevertheless, since the equity markets showed a very strong rebound over the course of 2019, one would expect to see net inflows