December 20, 2023

Holiday Fund Fact Special

ISS MI Holiday Fund Fact Special

With the end of the year upon us, let us reflect on what has happened so far. Another year, another challenge. Although fund flows managed to avoid a repeat of 2022’s net outflows, net sales remained muted in 2023 across many regions. Hiding beneath these muted flows, however, were many stories of success. Opportunities continue to present themselves across investment strategy, product vehicle and distribution channel. You just needed to know where to look.

Our 12 holiday fund facts look to shine a light on the challenges and successes seen in the first nine months of 2023.

Facts 1 to 3 leverage our Simfund database and consider funds across the globe. All figures are in USD.

Fact 1: 1,001. The number of fund managers that came into 2023 with $100 million in assets under management (AUM) and have registered positive flows year-to-date.
Fact 2: $900+ billion. Money market net sales to September.
Fact 3: $500+ billion. Net sales into long-term index funds.

Facts 4 to 6 leverage our Simfund database and consider funds domiciled in Europe. All figures are in USD.

Fact 4: $270+ billion. The difference in net sales between active Article 8 funds with an ESG term in the fund name and active Article 8 funds without an ESG term in the name.
Fact 5: ~$110 billion. Net sales into bond funds year-to-date.
Fact 6: Ireland. Irish domiciled funds led all domiciles with $75 billion in net sales of long-term funds.

Facts 7 to 9 leverage the UK platform distribution dataset powering Financial Clarity. Only retail channels are considered.

Fact 7: 9 for 9. In all nine months, index funds have outsold active funds on a net sales basis.
Fact 8: 100%. Net sales of funds sold through model portfolios have outperformed non-model portfolio driven fund sales in every month. The average monthly difference in net sales has been £1.7 billion.
Fact 9: 10-20%. Estimate of 2023 gross sales going into funds with an ESG or sustainability orientation. The range reflects the challenge in classifying funds under a yes/no sustainability/ESG framework.

Facts 10-12 leverage our Simfund database and consider funds domiciled in Asia. All figures are in USD.

Fact 10: ~$200 billion. The gap between China’s net sales and the next closest Asian domicile, Japan.
Fact 11: 2015. Since Q1 2015, equity index fund net sales have been positive on a quarterly basis in Japan.
Fact 12: Equity India. Indian retail investors have powered Equity India to the best-selling strategy amongst Indian domiciled funds.

Talk to us today to learn more about how ISS Market Intelligence can enhance your chances of success in 2024.

Happy holidays from the team at ISS Market Intelligence!

Commentary by ISS Market Intelligence

By: Benjamin Reed-Hurwitz, Vice President, EMEA Research Leader ISS Market Intelligence

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