lh x cw market report A4_23.03.02 v34 interactive72

THE DEVELOPMENT OF HUNGARIAN DOMESTIC FUNDS

Domestic capital has accounted for more than half of all transaction volume for four of the past five years. In a time of global uncertainty, this diversity of capital underpins the market in a way that was not apparent in the days prior to the Global Financial Crisis and so gives reassurance as to the market’s liquidity. The net asset value of domestic funds almost

doubled between 2015 and 2018. 2022 saw a slight decline in total asset value of 3% due to the significant weakening of the forint, although new funds have still been created - indicating continued long-term confidence. Following a period of rapid expansion and acquisition, funds are increasingly active on the sales side, indicating a fully functioning ownership cycle.