- Net flows to mutual funds and ETFs for January were €137.44bn, recovering from the month-on-month decline in sales since August 2025.
- MMFs were the best-selling asset class, rebounding from December’s heavy outflows to take €50.63bn.
- Money Market EUR pushed Equity Emerging Markets Global off the top spot, which nevertheless posted strong sales (+€11.25bn).
- The worst redemptions were suffered by Equity Europe ex UK (-€1.39bn) and Equity UK (-€1.45bn).
- BlackRock was the most successful fund promoter (+€16.25bn).
Investors Favour EM Equities, Despite Battalions of Geopolitical Sorrows
“When sorrows come, they come not single spies. But in battalions,” wrote Shakespeare in the (now, once again topical) Hamlet. And, in geopolitical terms, come they did in January. Greenland, Iran, worsening Europe/US relations, renewed tariff threats, contributing to further dollar weakness and strengthening gold, until the yellow metal plummeted at month end.
Despite this, macro conditions were broadly supportive of markets. Key indicators, such as Purchasing Managers’ Indices, were generally positive across major economies, signalling strengthening economies. US third‑quarter GDP growth held steady, as unemployment ticked lower, and job vacancies increased, pointing to early signs of labour‑market stabilisation.
While inflation accelerated in the UK due to seasonal factors, US headline CPI was flat, and remained close to target in the Eurozone. China, however, saw price declines over the month, deepening worries over structural deflation linked to excess capacity and weak wage growth. Most major central banks, including the Federal Reserve, Bank of Japan, and Bank of Canada, kept interest rates unchanged.
Risk assets benefited from the backdrop. Equities advanced, particularly outside the US, and equity sales were strong in Europe over the month (+€44.15bn), particularly to Global Emerging Markets, which seems to be—for now at least—investors’ favoured alternative to US equities. That said, despite the generally risk-on mood in the European fund market, money market funds were the most popular asset class.
Asset Type Flows
Asset Type Flows January 2026
Chart 1: Estimated Net Flows by Asset and Product Type – January 2026 (€bn)
Source: LSEG Lipper
In what was undoubtedly a buoyant start to the year, net flows to mutual funds and ETFs for January were €137.44bn, recovering from the month-on-month decline in sales since August 2025. Mutual funds attracted €89.5bn, while ETFs took €47.94bn. This, despite the fact that UK numbers, included in this, tell a story of investors dumping risk assets and heading into cash.
MMFs were the best-selling asset class, rebounding from December’s heavy outflows to take €50.63bn, mainly in mutual funds. Equities followed (+€44.15bn: +€6.79bn MF/+€37.36bn ETF). December had seen equity MF sales exceed those of ETFs, but this seems to have been something of a blip.
Bond sales were down on the previous month (+€28.6bn: +€19.14bn MF/+€9.45bn ETF), while mixed assets flows continued their upward trend (+€11.92bn: +€11.8bn MF/+€0.13bn ETF).
Alternatives were down on the previous month (+€2.83bn: +€2.99bn MF/-€0.16bn ETF), as were commodities (+€0.17bn: +€0.9bn MF/-€0.73bn ETF), as “other” funds rose slightly (+€0.04bn, all MF). Real estate was again in negative territory, with redemptions of €0.91bn, all MF.
Fund Flows Active vs Passive Products
Chart 2: Estimated Net Flows by Fund Vehicle (LHS) and Long vs Short-term (RHS), January 2026, €bn
Source: LSEG Lipper
Actively managed mutual funds were the most popular vehicle in January, netting €85.24bn, a significant increase on previous months, supported by a reversal of flows to MMFs (+€47.87bn). ETFs saw inflows of €47.94bn. At some distance, mutual fund index trackers nevertheless enjoyed their third consecutive positive month (+€4.25bn).
Fund Flows by Lipper Global Classification
Fund Flows by Lipper Global Classification, January 2026
Chart 3: Ten Best- and Worst Lipper Global Classifications by Estimated Net Sales, January 2026 (€bn)
Source: LSEG Lipper
Between December and January, Money Market EUR funds went from last to first, netting €37.51bn (+€36.06bn MF/+€1.45bn ETF). This was enough to push Equity Emerging Markets Global off the top spot, which nevertheless posted strong sales (+€11.25bn: +€6.19bn MF/+€5.06bn ETF). This sustained buying is likely because, as investors become more wary over the US market, amplified by slackening performance over the past year, they are seeking alternatives. While EMs may not seem that obvious a substitute for the quintessential DM, many have been running significant underweights to the former for some considerable time, and the current market seems to offer an opportunity to advantageously rebalance.
Equity Global (+€8.64bn) and Equity Europe (+€5.57bn) were also attractive equity destinations, again mainly to ETFs. Equity US, while having been dethroned over 2025, still attracted a modest €0.25bn over January.
Money Market USD continues to see strong flows (+€11.03bn), offering eurozone investors a better yield than domestic currency, despite the weakening dollar.
In terms of equity sector performance, January was strongly positive for materials, and investors allocated €2.92bn to Equity Sector Materials, mainly ETFs. While it was also a good month performance-wise for tech, Equity Sector Information Technology funds shed €1.14bn, albeit with modest inflows to ETFs.
Bond USD Government (-€1.14bn) and Bond USD (-€0.58bn) both sold off, although Bond Global USD attracted €3.74bn, mainly to ETFs. However, despite decent performance over both the month and previous year, the worst redemptions were suffered by Equity Europe ex UK (-€1.39bn) and Equity UK (-€1.45bn).
Fund Flows by Promoter
Fund Flows by Promoter, January 2026
Chart 4: Ten Best-Selling Fund Promoters in Europe, January 2026 (€bn)
Source: LSEG Lipper
The 10 companies in the table above accounted for 56.35% of net flows over the month, summing to €77.44bn.
BlackRock again took poll position (+€16.25bn: -€1.77bn MFs/+€18.01bn ETFs), This was followed once again by Amundi (+€10.41bn: +€4.53bn MFs/+€5.89bn ETFs), with the strongest mutual fund sales. HSBC took third place (+€8.57bn: +€7.79bn MFs/-€0.78bn ETFs).
