- Total flows to mutual funds for June were €49.91bn, down on May and April, despite the ongoing Q2 rally.
- Bond flows rebounded from May, being the highest-netting asset class
(€29.88bn: €23.73bn MF/€6.15bn ETF).
- Money Market USD vaulted to the top of the table in June, attracting €18.93bn, double that of second-placed, and May’s frontrunner, Equity Global.
- Despite strong market gains, Equity US and Equity IT funds both sold off.
- JPMorgan was the top-selling fund promoter in June (€11.83bn: €11.24bn MFs/€0.58bn ETFs), with Money Market USD mutual funds leading sales.
Q2 saw a reverse of much of the negative sentiment that had bedevilled markets over Q1, even if few of the underlying factors, such as the uncertainty of the magnitude and impact of tariffs, seemed to have been dispelled. The US’ pause in full tariff implementation, combined with businesses front-running imports, both moderated any immediate impact, and give market confidence, as they not so much as climbed a wall of worry as pole vaulted over it.
The global tech rally resumed, and equities were up broadly, in one of the sharpest equity recoveries ever, post the early-April nosedive. The VIX and high-yield spreads both headed downwards from early April to the end of H1.
With yield curves steepening, European investors (though not the UK cohort) backed bonds in June, along with money market funds, especially in USD form, though EUR was also popular. There are opposing forces at play with the former, as the higher rates in the US would clearly make dollars more attractive, while the weaking currency pulls in the other direction. FX markets have their own arcane logic, but it’s clearly the former pull that wins out in June.
On the equity fund sales front, Equity Global was the top-selling classification, with Equity US seeing outflows for the first time this year, despite the ongoing rally in the S&P 500. Possibly investors are using this as a good point to trim their positions, given continuing geopolitical headwinds. However, while still positive, flows to European equities are modest, indicating that investors are playing wait-and-see, spreading their bets globally until a clearer market signal emerges.
Asset Type Flows
Asset Type Flows June 2025
Graph 1: Estimated Net Flows by Asset and Product Type – June 2025 (€bn)
Source: LSEG Lipper
Total flows to mutual funds and ETFs for June were €49.91bn, down on May’s €53.24bn, and again on April’s €57.9bn, despite the ongoing rally from early April. Mutual funds attracted €29.81bn, while ETFs took €20.09bn. This is likely reflective of the stronger showing by bonds and MMFs over equity funds, the latter being ETFs’ strongest asset class.
Bond flows rebounded from May, being the most successful asset class (€29.88bn: €23.73bn MF/€6.15bn ETF). This is despite the negative flows experienced in the UK market. MMFs followed (€17.46bn: €15.96bn MF/€1.51bn ETF); then equities (€9.25bn: -€2.37bn MF/€11.62bn ETF); alternatives (€1.75bn: €1.58bn MF/€0.17bn ETF); and commodity funds (€1.24bn: €0.64bn MF/€0.6bn ETF)
On the negative side of the equation, mixed-assets funds saw the worst outflows, heavily driven by liquidations in the UK market (-€9.44bn: -€9.48bn MF/€0.04bn ETF). Less severely, real estate (-€0.23bn, all MF). And ‘Other’ funds (-€0.02bn, all MF) both saw redemptions.
Asset Type Flows Year to Date
Graph 2: Estimated Net Sales by Asset and Product Type, January 1 – June 30, 2025 (€bn)
Source: LSEG Lipper
Despite their limited attractions over June, equities were the most popular fund asset class with European investors over H1 2025 (€119.2bn: €2.48bn MF/€116.72bn ETF). Given that major equity indices are hitting all-time highs, that’s not too surprising, although June’s slackening of pace may indicate that the significant volatility of Q2 is giving many investors food for thought.
This was followed by MMFs (€109.14bn: €98.34bn MF/€10.81bn ETF), then bonds (€109.02bn: €87.1bn MF/€21.92bn ETF). Despite heavy outflows in June, mixed-asset funds were still in the black YTD (€10.31bn: €9.85bn MF/€0.46bn ETF), as were alternatives (€7.09bn: €5.74bn MF/€1.34bn ETF) and commodities (€4.14bn: €2.98bn MF/€1.16bn ETF).
Conversely, real estate (€3.66bn, all MF) and ‘Other’ funds (€0.5bn, all MF) saw outflows over the year.
Fund Flows Active vs Passive Products
Graph 3: Estimated Net Flows by Management Approach and Product Type, June 2025 (LHS); January 1 – June 30, 2025 (RHS). €bn
Source: LSEG Lipper
June was a relatively strong month for actively managed mutual funds. Over the month, ETFs saw inflows of €20.09bn with active mutual funds attracting €29.81bn and mutual fund index trackers shedding €4.31bn. YTD, those figures are €152.41bn, €202.33bn, and €186.05bn.
When MMFs are stripped out YTD, flows to long-term assets in ETFs were €141.6bn, with the bulk of this going to equity ETFs, while actively managed mutual funds’ share of long-term asset flows was €90.46bn and index-tracking mutual funds €13.54bn.
Fund Flows by Lipper Global Classification
Fund Flows by Lipper Global Classification, June 2025
Graph 4: Ten Best- and Worst Lipper Global Classifications by Estimated Net Sales, June 2025 (€bn)
Source: LSEG Lipper
Over June, both the S&P 500 and IT stocks were up strongly, though you wouldn’t know it from the flows figures (-€1.24bn and
-€1.44bn) for Equity US and Equity Sector IT, respectively. Given increased equity market volatility over Q2, it’s quite possible that investors are taking the opportunity to trim their exposure to these markets.
Money Market USD vaulted to the top of the table in June, attracted €18.93bn, almost all through mutual funds. This was double second-placed, and May’s frontrunner, Equity Global (€9.87bn: €6.01bn MF/€3.86bn ETF). European investors have been reducing their allocations to Equity US over the course of the year, though this is the first time we have seen the classification in negative territory YTD. However, allocations to Equity Europe, touted as an alternative to the US, have also subsided, this month being just €201m. So, Equity Global is the default option for the moment for this asset class, while investors wait and hope for the geopolitical dust to settle.
As in recent months, Target Maturity Bond EUR 2020+ proved popular (€6.81bn: €6.5bn MF/€0.31bn ETF). These assets are often used by institutions as near-cash equivalents. Money Market EUR (€5.25bn) also proved popular, despite steepening yield curves offering the potential for higher returns by moving into longer-duration fixed income assets. Both increased fiscal stress (itself part responsible for this curve steepening, pushing up yields at the long end) and concerns that the beast of inflation has not been fully laid to rest may be supporting MMF flows. Support for either hypothesis can be found in the positive flows for Bond Global Short Term and Bond EUR Short Term funds (€3.34bn and €2.94bn, respectively).
At the bottom of the table, the Mixed Asset GBP Flexible redemptions (-€4.85bn) is highly concentrated, focused on one fund. While the €1.14bn outflows from Bond USD Government funds may indicate hesitancy of the safe haven status of Treasuries, this doesn’t quite seem like a rush for the exits.
Fund Flows by Lipper Global Classification, Year to Date
Graph 5: Ten Best- and Worst Lipper Global Classifications by Estimated Net Sales, January 1 – June 30, 2025 (€bn)
Source: LSEG Lipper
Equity Global retains the top spot YTD (€67.37bn: €31.67bn MF/€35.4bn ETF), with the relative attractions of Equity US on the wane (€19.06bn: €6.46bn MF/€112.6bn ETF). Equity Europe was widely touted as an alternative to the US, and though June’s flows were down (if net positive), it is marginally ahead of Equity US YTD (€22.27bn: €7.13bn MF/€15.14bn ETF).
Equity US Small & Mid Cap funds have felt the brunt of nervousness regarding US equities far more than their large-cap siblings and, despite June’s outperformance, are in the red YTD by €5.13bn.
And, while cash may not be king at the moment, it is clearly within the ranks of the nobility, with robust flows to Money Market EUR and Money Market USD funds YTD (€55.15bn and €50.40bn, respectively). As stated above, both Bond EUR Short Term and Bond Global Short Term are seeing strong flows over the year despite steepening curves.
While the flood of money from Money Market TRY funds that keeps the classification at the bottom of the table seems to have ebbed somewhat, June flows were still negative (-€939m).
Fund Flows by Promoter
Fund Flows by Promoter, June 2025
Graph 6: Ten Best-Selling Fund Promoters in Europe, June 2025 (€bn)
Source: LSEG Lipper
JPMorgan led the field in June (€11.83bn: €11.24bn MFs/€0.58bn ETFs), with Money Market USD mutual funds particularly evident among its top-selling funds. BNP Paribas followed (€10.43bn: €9.75bn MFs/€0.68bn ETFs), with a similarly strong showing among Money Market EYR funds.
The sales of the 10 top-selling managers for the month summed to €47.7bn, or 96% of the total.
Fund Flows by Promoter, Year to Date
Graph 7: Ten Best-Selling Fund Promoters in Europe, January 1 – June 30, 2025 (€bn)
Source: LSEG Lipper
Despite not making June’s leaderboard, BlackRock maintains its commanding YTD top slot (+€51.07bn: mutual funds, -€3.38bn; ETFs +€54.46bn). Second place is unchanged, with Vanguard (+€21.9bn: mutual funds, +€3.99bn; ETFs +€17.91bn); as is third-placed JPMorgan (+€19.03bn: mutual funds, +€15.46bn; ETFs +€3.62bn) YTD.
The sales of the 10 top-selling managers for the month summed to €173.54n, or 49% of the total.
