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Highlights
- Total estimated net inflows reached €58.89bn in June
- Bonds narrowly led the asset-class ranking at €26bn, just ahead of equities at €25.67bn, while mixed assets added a further €10.30bn
- Equity Global was the month’s best-selling classification (+€17.47bn), moving ahead of May leader Money Market USD, which remained positive at €10.49bn
- Equity US (+€9.36bn) and Equity Sector Information Technology (+€3.64bn) benefited from technology-led market strength, while Equity Emerging Markets Global
(-€5.57bn) and Equity Asia Pacific ex Japan (-€1.19bn) sold off
- Goldman Sachs topped June’s fund manager table (+€9.88bn), narrowly ahead of Vanguard (+€9.27bn)
Executive Summary
The first half of 2026 closed in positive territory, with markets shrugging off the on-off war in the Middle East, and despite lingering uncertainty around inflation and monetary policy. The US-Iran agreement helped oil prices retreat from their March spike, easing inflation expectations and supporting a recovery in risk appetite. This was helped by resilient corporate earnings and the AI capital-expenditure cycle propelled technology and telecommunications, while Asia Pacific ex Japan led regional equity returns. That doesn’t seem to have helped the region attract cash from Europe’s fund investors, however (see below).
Nevertheless, central banks remained cautious—the European Central Bank (ECB) and Bank of Japan (BoJ) tightened policy, while markets moved towards pricing further Federal Reserve hikes.
Against that backdrop, European mutual funds and ETFs attracted €58.89bn in June. Bonds narrowly headed the asset-class table (+€26bn), benefiting from some easing in government yields and improving demand for income. Equities followed closely at €25.67bn, with a strong tilt to Equity Global, US, and IT—in other words, still very much in thrall to the dominant AI market theme. However, despite the rotation from IT software to hardware we have seen over the year, the hardware-heavy equity markets of APAC and Asian emerging markets have suffered redemptions.
Equity Global was the clear favourite (+€17.47bn), displacing May’s top seller, Money Market USD, which nevertheless retained second place (+€10.49bn). Equity US attracted €9.36bn and Equity Sector Information Technology added €3.64bn, consistent with technology-led market performance. These flows were heavily ETF-oriented, signalling a preference for liquid, broad-market implementation rather than a return to traditional equity mutual funds. Equity Emerging Markets Global shed €5.57bn, while Equity Asia Pacific ex Japan lost €1.19bn, despite the region’s robust performance.
Mixed-assets products gathered €10.30bn and alternatives €4.20bn, while money market funds suffered redemptions of €6.40bn.
Money Market EUR funds lost €19.83bn, as their USD equivalents continued to prove a strong focus of attraction, backed by market expectations of Federal Reserve cuts towards the possibility of further tightening during 2026.
Asset Type Flows
Asset Type Flows June 2026
Chart 1: Estimated Net Flows by Asset and Product Type – June 2026 (€bn)
Source: LSEG Lipper
June’s flows were characterised by strong demand for bonds and ETF-led equity exposure, alongside continued support for diversified allocation strategies. Total estimated net inflows to mutual funds and ETFs reached €58.89bn, with ETFs attracting €39.49bn, more than double the €19.40bn gathered by mutual funds, although the underlying picture varied sharply by asset class.
Bonds were the best-selling asset class, attracting €26.00bn, with demand spread across mutual funds (+€18.37bn) and ETFs (+€7.63bn). Equities followed closely at €25.67bn, but that headline masks a pronounced divergence between vehicles: equity mutual funds suffered redemptions of €5.04bn, while ETFs gathered €30.71bn. In short, investors continued to add equity exposure, but overwhelmingly through liquid, low-cost exchange-traded products.
Mixed-assets funds also recorded robust inflows of €10.30bn, almost entirely through mutual funds, while alternatives attracted a further €4.20bn. Commodity funds saw more modest demand of €0.27bn, split across both product types.
By contrast, money market funds experienced redemptions of €6.40bn, in contrast to the asset class’s May inflows of €12.07bn—also providing the only meaningful change from the previous month. Mutual fund outflows of €7.32bn were partly offset by ETF inflows of €0.92bn, suggesting some rotation away from traditional liquidity holdings as investors redeployed capital into bonds and equity ETFs. Real estate remained under pressure, losing €0.71bn, while “other” funds posted outflows of €0.43bn, in both cases entirely from mutual funds.
Asset Type Flows Year to Date
Chart 2: Estimated Net Sales by Asset and Product Type, Year to Date (€bn)
Source: LSEG Lipper
The picture over the first half of 2026 combines strong ETF-led equity demand with broad support for fixed income and mixed-assets funds. While mutual funds remain slightly ahead at the aggregate level, that headline figure is heavily supported by money market, bond, and mixed-asset demand; for equities, ETFs remain firmly in the driving seat.
Net inflows to European mutual funds and ETFs reached €484.59bn for H1 2026, with mutual funds attracting €262.91bn and ETFs €221.68bn. Equities remained the dominant asset class, gathering €180.70bn, but that headline masks a pronounced divergence by vehicle: ETFs accounted for €170.76bn of the total, compared with just €9.94bn going to mutual funds. This reinforces the structural migration towards liquid, low-cost equity allocation, not least through index-tracking vehicles.
Bonds moved ahead of money market funds to become the second best-selling asset class year to date, attracting €121.66bn (+€82.69bn MF/+€38.97bn ETF). Strong demand for bond funds in June, helped by a more supportive backdrop for duration, combined with monthly redemptions from money market products to reverse their relative positions.
Money market funds nevertheless retained substantial YTD inflows of €91.31bn, mainly through mutual funds (+€80.22bn MF/+€11.09bn ETF). June’s outflows therefore look more like a partial redeployment of elevated liquidity balances than a wholesale retreat from cash, although the decline in their ranking suggests investors have become somewhat more willing to lock in income elsewhere.
Mixed-assets funds gathered €71.87bn, almost entirely through mutual funds, reinforcing their continuing role as core allocation products. Alternatives attracted a further €16.43bn, again overwhelmingly via mutual funds, while commodity funds added €3.78bn and “other” funds €0.90bn.
Real estate remained the sole asset class in negative territory, with YTD redemptions of €2.06bn, entirely from mutual funds.
Fund Flows Active vs Passive Products
Chart 3: Total Net Assets by Product Type, €bn (LHS); Flows by Product Type, Year to Date, €bn (RHS)
Source: LSEG Lipper
Actively managed mutual funds remain the largest component of the European ETF and mutual fund market’s €19.57trn AUM by some distance, with €14.08trn in assets, equivalent to around 72% of the total. ETFs account for €3.10trn, while index-tracking mutual funds hold €2.39trn. The stock of assets therefore remains anchored in active products, even as current investor demand is increasingly being directed elsewhere.
Flows indicate how this balance is shifting. ETFs have attracted €221.68bn, narrowly ahead of the €218.19bn gathered by active mutual funds, with index mutual funds adding €44.72bn. The difference becomes much more pronounced once money market products are excluded: ETFs account for €210.59bn of the €393.28bn flowing into long-term assets, compared with €140.29bn for active mutual funds and €42.40bn for index mutual funds.
Liquidity remains the counterweight to that shift. Of the €91.31bn directed to money market funds, €77.90bn went to active mutual funds, versus €11.09bn to ETFs and €2.32bn to index mutual funds. The result is a clear division of labour: exchange-traded products are setting the pace in long-term allocations—mainly through their dominance in equity fund sales—while active funds continue to dominate cash management, albeit with significant a share of non-equity assets classes.
Fund Flows by Lipper Global Classification
Fund Flows by Lipper Global Classification, June 2026
Chart 4: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, June 2026 (€bn)
Source: LSEG Lipper
Equity Global attracted €17.47bn and displaced May’s top seller, Money Market USD. Demand was overwhelmingly ETF-led: exchange-traded products gathered €14.58bn, compared with €2.88bn for mutual funds. Money Market USD nevertheless remained strongly supported in second place (+€10.49bn), helped by a firmer dollar and the market’s shift from anticipated US rate cuts towards the possibility of further tightening.
Equity buying extended into US and technology exposure. Equity US ranked third with €9.36bn, despite mutual fund redemptions of €1.51bn, as ETFs attracted €10.86bn. MeanwhileEquity Sector Information Technology added €3.64bn, split relatively evenly between product type. Those allocations followed the quarter’s market leadership: technology and telecommunications delivered the strongest industry returns, supported by resilient earnings and the continuing AI capital-expenditure cycle.
Broader equity mandates also featured prominently. Equity Global Income gathered €2.47bn and Equity Global ex UK €2.36bn, while Mixed Asset EUR Aggressive – Global attracted €1.98bn. Fixed income demand was present but less dominant, led by Bond Global USD (+€3.25bn), Bond Other (+€2.31bn), and Bond Global Short Term (+€2.21bn), with mutual funds supplying most of the buying.
At the other end of the ranking, Money Market EUR suffered by far the largest redemptions (-€19.83bn), marking a sharp contrast with continued demand for its dollar counterpart. Emerging market equities also remained under pressure: Equity Emerging Markets Global lost €5.57bn, while Equity Asia Pacific ex Japan, Equity India, and Equity China all recorded outflows.
The Asia-Pacific result is especially striking, given that developed Asia Pacific ex Japan led regional equity returns over the quarter, supported by AI-related exposure. Emerging markets, however, lagged the FTSE All-World. This disconnect suggests that investors continued to favour global, US, and sector vehicles over dedicated regional mandates, notwithstanding robust performance in parts of Asia. Energy funds also lost €1.26bn as falling oil prices left the sector trailing the broader equity market.
Fund Flows by Lipper Global Classification, Year to Date
Chart 5: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, Year to Date (€bn)
Source: LSEG Lipper
June’s heavy redemptions from Money Market EUR reshaped the year-to-date leaderboard, pushing the classification out of first place. Equity Global now leads by a clear margin, with inflows of €76.43bn. ETFs supplied €65.86bn of that total, against €10.57bn from mutual funds, as investors opted for broad, exchange-traded equity exposure.
Money Market EUR remains second at €52.58bn, followed by Money Market USD at €40.62bn. The continued attraction of Money Market USD is consistent with the dollar strengthening over Q2 and the shift in market expectations, from Federal Reserve cuts towards the possibility of further tightening during 2026.
Risk-asset demand extends well beyond the leading global category. Equity Emerging Markets Global has gathered €21.84bn, largely through ETFs, although flows over May and June suggest this has gone into reverse, as Equity US returns to favour (YTD + €19.61bn). The latter contains one of the starkest product splits in the table: mutual funds have lost €8.24bn, whereas ETFs have attracted €27.85bn. Equity Global Income also remains firmly supported at €13.89bn. This broad equity appetite accords with the second-quarter rebound, when resilient earnings and renewed enthusiasm for AI-related capital expenditure helped equity markets recover from March’s setback.
Bond Global USD ranks fourth overall, with €22.17bn, despite strong flows to the asset class overall, suggesting that this trend is strongly skewed to this classification. Meanwhile, three mixed-asset classifications feature among the top 10. Mixed Asset USD Flexible – Global leads that group at €12.13bn, followed by Mixed Asset GBP Aggressive – Global (+€11.38bn) and Mixed Asset EUR Flexible – Global (+€11.09bn). Their presence suggests that investors still want diversified asset products alongside the risk-on trade—although, as the following two charts testify, this is very much a characteristic of the retail market.
At the foot of the table, selling is concentrated in narrower regional and defensive mandates. Equity Europe ex UK has suffered the largest redemptions (-€6.47bn), followed by Target Maturity MA EUR 2030 (-€6.09bn) and Equity Asia Pacific ex Japan (-€5.25bn). The latter is particularly notable because Asia Pacific ex Japan led regional equity returns in the second quarter, implying that flows have favoured global vehicles over dedicated regional exposure despite robust performance. Equity Sector Healthcare (-€4.83bn), Equity China (-€3.95bn), Equity India (-€3.49bn), and Equity UK (-€3.10bn) all suffered ongoing redemptions.
Flows: Institutional v Retail
Chart 6: Asset Class Flows, Active and Passive, June 2026 (£bn)
Source: LSEG Lipper
June generated net inflows of £58.89bn, although the headline was overwhelmingly retail-driven, as institutional investors skirted shy of equities, in contrast to the gung-ho approach of their retail peers.
Retail investors contributed £54.84bn, compared with just £2.93bn from institutional accounts, with demand concentrated in bonds, equities, and mixed-assets products.
Bond fund demand was broadly distributed between retail (+£12.61bn) and institutional investors (+£13.39bn), pointing to widespread appetite for income and duration. Equities followed closely at £25.67bn, but the underlying split was markedly different: retail investors added £31.22bn, while institutions withdrew £5.55bn.
Mixed-assets funds attracted £10.30bn, almost entirely from retail investors, while alternatives gathered £4.20bn, supported by both client groups. Commodities recorded a modest £267m of inflows.
By contrast, money market funds suffered the largest redemptions, losing £6.40bn. Institutional withdrawals of £6.72bn more than offset limited retail buying, consistent with cash being redeployed into bonds and other long-term exposures. Real estate remained under pressure with £710m of outflows, while “other” funds lost £433m. Overall, June’s flows point to strong retail-led risk allocation alongside more selective institutional positioning.
Chart 7: Asset Class Flows, Institutional v Retail, YTD 2026 (£bn)
Source: LSEG Lipper
Year-to-date flows reveal a pronounced divide between retail and institutional behaviour. Retail investors have supplied €374.99bn of net buying, more than three times the €109.60bn contributed by institutions, but the composition of that demand differs sharply across asset classes.
Retail flows are heavily concentrated in bonds, mixed assets, and alternatives. Bond funds have gathered €170.87bn from retail investors, compared with just €9.82bn institutionally, while mixed-assets products show a similarly lopsided split (€88.91bn versus €2.40bn). Alternatives have also been strongly retail-led, attracting €90.72bn despite institutional redemptions of €18.84bn.
Equities are the clearest point of alignment. Institutional inflows of €61.99bn slightly exceed retail demand of €59.67bn, suggesting broad participation in risk assets across both channels. Commodities, by contrast, have been almost entirely institutional, with €15.67bn of buying against less than €1bn from retail accounts.
Money market funds remain negative for both groups, indicating that YTD allocations have generally favoured longer-term exposures over cash.
That “other” retail (-€3.57bn) to institutional (+€3.94bn) rotation? These are Austrian private funds. Given their nature, we can’t say anything about the nature of the reallocation, other than this.
Fund Flows by Promoter
Chart 8: Ten Best-Selling Fund Promoters in Europe, June 2026 (€bn)
Source: LSEG Lipper
The 10 best-selling promoters attracted €55.90bn in June, or nearly 95% of the total net flows for the month. Goldman Sachs topped sales, at €9.88bn. Its result combined strong equity inflows of €5.29bn with €4.22bn into money market products, giving the firm a broader base of demand than several ETF-focused competitors.
Vanguard followed with €9.27bn, driven mainly by equities (€6.77bn) and bonds (€2.10bn). Morgan Stanley ranked third at €8.05bn, although its position rested almost entirely on €9.08bn of money market inflows, which more than offset equity redemptions of €1.44bn. BlackRock gathered €6.63bn through sizeable bond and equity sales despite losing €4.68bn from liquidity products.
Further down the table, Legal & General’s €5.20bn was concentrated in money market and mixed-assets funds, while State Street Investment’s €4.32bn was overwhelmingly equity-led. HSBC recorded a more evenly distributed €3.94bn across equities, money markets, and bonds.
DWS also benefited from robust equity demand, but money market outflows of €1.98bn reduced its total to €3.67bn. Invesco and Franklin Templeton completed the ranking, both supported principally by equity products. June’s promoter table therefore reflected several distinct allocation channels rather than a single dominant product theme.
Chart 9: Ten Best-Selling Fund Promoters in Europe, Year to Date (€bn)
Source: LSEG Lipper
BlackRock retained a commanding lead in the year-to-date promoter ranking, gathering €64.67bn. Equity products supplied €46.20bn of that total, complemented by €17.85bn from bonds and €3.83bn from mixed assets; money market redemptions of €3.54bn provided the principal offset.
Vanguard ranked second with €38.61bn, again reflecting the strength of its equity franchise, which attracted €28.60bn. DWS followed at €33.20bn, supported by a broader mix of equity (€13.30bn), money market (€11.47bn), mixed-asset, and bond inflows. Amundi’s €28.06bn was more concentrated, with €24.80bn flowing into equities despite weakness across alternatives, commodities, and “other” products.
Below the four leaders, the sources of demand became more varied. HSBC gathered €20.94bn, led by money market and bond funds, whereas State Street Investment’s €20.65bn rested primarily on equities, partly reduced by bond redemptions. PIMCO attracted €17.14bn through mixed assets and fixed income, illustrating a markedly different sales profile from the large passive houses.
UBS Asset Management, Northern Trust, and Goldman Sachs completed the table. Taken together, the ranking shows equity demand concentrated among the largest global platforms, while liquidity, bonds, and mixed assets provided support for promoters with stronger active franchises.
