No one needs reminding that 2022 hasn’t been a great year for fund sales or performance.

But, hey, there’s always a new fund around the corner to keep people excited, right?

Not this year – bear markets and fund launches don’t mix. Citywire Amplify has crunched the numbers and found that new launches are down 30% so far this year compared with 2021.

We looked at every new fund to which Citywire assigned a sector over the past two years, covering 1,704 fund groups around the world.

Beyond the top-line numbers, there’s also a shift in the sectors where launches have been taking place.

Equity – Global Blend

Despite launching fewer products compared to last year – they’re down by almost half – the equity global blend sector remains the top sector for new funds.

It’s a big receptacle for allocation, a middle-of-the-road option for investors looking to hedge their bets through diversification across developed and emerging markets.

The MSCI ACWI GR index (below), which encompasses large- and mid-cap offerings across 23 developed and 24 emerging markets (around 85% of the global investable equity market) shows why blending had a good year. While growth lost almost 25%, value ends the year just 6% lower.

Ecology

The falloff in launches has even hit ESG-related sectors, despite the industry’s current obsession with everything related to sustainability.

There were only 32 launches, compared with 58 in 2021, in a sector that includes renewables, water and agriculture, as well as pollution control and sustainable forestry.

However, this is a sector that isn’t going away, with long-term demand driven by companies wanting to prove their ESG credentials. And it’s had a decent year for inflows – ecology-focused Ucits funds have taken in $9bn and have overall assets of $95bn.

Technology

Technology stocks have had a tough year dealing with rising interest rates, increasing labour costs and a strong dollar. It’s been a massive shock for a sector which was a market favourite for so long, especially during the pandemic.

Billions were wiped out over the year – Facebook shares are down 65%, Amazon is off 48%, and Tesla has shed 55%.

In terms of product launches, there were 76 this year against 144 in 2021. That’s a big fall but still shows optimism that there will be an appetite for tech in the near future.

China

It’s been a grim year for China as well. The tough restrictions from a strict zero-Covid policy, as well as government interference in the tech sector, have sent Chinese stocks plunging with the MSCI China index (above) 21% down.

In terms of product launches, there were 67, down by 33% from 2021 – perhaps a smaller decline than one might have thought.

How these are received will depend very much on how quickly the ruling Communist party further relaxes Covid regulations in the face of public protests.