For the past few years, fund managers have opted for safe-haven investments to hedge against market volatility. Global stock markets became less appealing and investors shifted their focus to fixed-income instruments. According to Zawya Funds Monitor, the second quarter of 2011 witnessed the largest inflow to fixed-income funds while equity funds recorded an outflow of USD 138.61 million. Our industry analysis section below shows that out of 73 funds launched in 2012, 26 were fixed-income and sukuk type, and 20 invest in equities.
However, the BofA Merrill Lynch Fund Manager Survey shows that investors decided to start this New Year with optimism and an increased appetite for risk.