Analysing trends in investment funds

Published by: The WFE Research Team Dec 2020

In this article we analyse listings, total number of trades, and total trading value of investment funds in 2020, based on data received from 51 exchanges.

As Figure 1 shows, the number of investment funds listed remained relatively constant in 2020 with the exception of EMEA which registered a peak in March and a slight increase in August. Relative to October 2019, the number of investment funds in October 2020 is 1.1% lower, due to a decrease of 25.1% in APAC region. The increases registered in Americas and EMEA of 9.3% and 2.6% respectively were not able to compensate for the sharp drop in APAC.

As of October 2020, 76% of the funds are listed in EMEA, 12% in Americas and 12% in APAC.

Figure 1

In Figure 2 we observe that the number of trades in Americas and APAC peaked in March at 9,337,190 and 8,515,840, respectively, while in EMEA peaked in August at 8,734,090 trades. The month-on-month change in 2020 is shown in Table 1 below.

Figure 2

Table 1: Month-on-month change in number of trades per region

In the first 10 months of 2020 there were 64.5% more trades than during the same period in 2019, amounting to 125,220,310 trades globally, with all regions registering upticks: Americas 39.0%, APAC 23.9% and EMEA a significant 373.2%.

In October 2020 40% of trades were in EMEA, 31% in Americas, and 29% in APAC.

Figure 3 shows that the value traded followed the same pattern as the number of trades, with Americas and APAC peaking in March at 26.3 and US$ 40.7 billion, while EMEA peaked in August at US$ 26.7 billion. The month-on- month change in 2020 is shown in Table 2 below.

Figure 3

Table 2: Month-on-month change in value traded per region

In the first 10 months of 2020, trades increased by 21.3% compared with the same period in 2019, amounting to US$ 492 billion globally. The uptrend was due to APAC and EMEA regions which grew by 19.7% and 175% respectively, while Americas contracted by 19.2%.

In October 2020, APAC registered the lion’s share of value traded (46%), while EMEA and Americas accounted for 31% and 24% of the total value traded.

The trade size is shown is Figure 4, expressed in US$. We observe that while the APAC region's trade size varied greatly from month to month, in Americas there was less variation. Relative to October 2019 the trade size decreased in October 2020 in all regions: in Americas by 24.0%, in APAC by 36.1%, and in EMEA by 50.8%.

Figure 4