- Total flows for March were (-€28.33bn), with equities, bonds, and MMFs in negative territory
- Bonds experienced the largest redemptions over March (-€18.15bn), likely impacted by concerns of inflation
- Mixed Asset GBP Aggressive – Global was the top-selling classification (+€3.71bn), followed by Equity Global (+€3.35bn)
- Equity outflows were led by Equity US (-€2.20bn), with investors continuing to trim the large exposures in this classification built up particularly over 2024
- March’s promoter flows were led by Royal London (+€5.51bn, entirely MF)
Executive Summary
Markets were unsurprisingly focused on the situation in the Middle East over March, with fears of escalating inflation likely contributing to the heavy selloff in bonds we saw over the month (-€18.15bn, or almost two-thirds of the total redemptions for the month). European economies remain reliant on energy imports and sensitive to inflationary shocks which may result from the changes in prices we are seeing feed through, and investors will be well aware of the impacts of the 2022 inflationary shock, fresh in the memory, and with many portfolios still bearing the scars.
Markets repriced the European Central Bank (ECB) policy outlook substantially over the month, responding to the stagflation risks from the energy shock, according to FTSE Russell research. This caused 1-3 yr Bund yields to spike about 60 basis points (bps) from end of February levels, and a significant bear flattening of the yield curve in Europe. This reaction at the front end of the curve may be the legacy of underestimating the scale of the 2022 inflation shock and subsequent rate rises.
Nevertheless, both fixed income and total flows overall remain in positive territory over the quarter.
While the USD strengthened against most currencies in Q1 2026, particularly in March, hinting at a return to safe-haven status, MMF USD flows over the month were strongly negative—although Money Market USD is the fourth most popular fund classification over Q1, with Money Market EUR being the most popular.
In equity terms over the quarter, value dominated while tech’s hardware-software divergence on AI disruption fears hurt software-heavy indices such as the US and Emerging more than hardware-heavy ones in Asia Pacific. Despite this, APAC funds continue to see net redemptions. Investors continue to trim their Equity US overweights built up, instead favouring broad-based global and emerging market alternatives over the course of the year, with Swiss equities also proving a popular bolt-hole.
Asset Type Flows
Asset Type Flows March 2026
Chart 1: Estimated Net Flows by Asset and Product Type – March 2026 (€bn)
Source: LSEG Lipper
Total flows for March were -€28.33bn, reflecting broad-based outflows across the European fund market.
Bonds experienced the largest redemptions at -€18.15bn (-€15.13bn MF/-€3.02bn ETF), likely impacted by concerns of inflation as conflict in the Middle East widened. Money market funds followed, with outflows of €15.98bn (-€19.77bn MF/+€3.79bn ETF), indicating a significant rotation out of liquidity despite (and relatively unusually) ETF inflows.
Equities also saw net outflows of €6.84bn, though the underlying split remained pronounced: mutual funds shed €15.65bn while ETFs gathered €8.81bn. This again reflects a structural shift in vehicle preference rather than a wholesale exit from equity markets—although, again, heightening geopolitical risk will likely have catalysed selling.
In contrast, mixed-assets funds were the top-selling asset class, attracting €8.16bn (almost all MF), suggesting investors moved towards diversified strategies during the period of market weakness.
Commodities (+€1.31bn: +€0.36bn MF/+€0.94bn ETF), alternatives (+€1.04bn: +€1.02bn MF/€0.02bn ETF), and real estate (€1.93bn, entirely mutual funds) also remained in positive territory, though at more modest levels.
Overall, March was characterised by heavy redemptions from bonds, equities, and cash, with inflows concentrated in multi-asset and selective diversifying exposures.
Asset Type Flows Year to Date
Chart 2: Estimated Net Sales by Asset and Product Type, December 31, 2025 – March 28, 2026 (€bn)
Source: LSEG Lipper
The year-to-date picture shows strong equity demand—primarily via ETFs—alongside continued support for liquidity and fixed income strategies. Year-to-date flows total €251.24bn (+€143.76bn MF/+€107.49bn ETF), with equities the leading asset class.
Equities have gathered €99.64bn (+€13.51bn MF/+€86.13bn ETF), making them the top contributor to flows so far in 2026 despite March’s selloff. This is overwhelmingly driven by ETF demand, highlighting both the continued structural shift towards passive strategies and the perceived advantages of these vehicles.
Money market funds rank second, with €59.23bn (+€52.25bn MF/+€6.98bn ETF), followed by bonds at €43.33bn (+€29.76bn MF/+€13.57bn ETF). Mixed-asset funds have attracted €37.58bn (+€37.36bn MF/+€0.21bn ETF).
Elsewhere, alternatives gathered €8.05bn (+€8.09bn MF/-€0.03bn ETF) and commodities €2.89bn (+€2.26bn MF/+€0.63bn ETF), while other funds (€0.33bn) and real estate (€0.20bn) saw only marginal inflows.
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
By assets under management, actively managed mutual funds account for €12,915bn, compared with €2,657bn in ETFs and €2,089bn in index mutual funds (chart 3, LHS).
Year-to-date flows show actively managed mutual funds gathering €115.25bn, ahead of ETFs at €107.49bn and index mutual funds at €28.51bn (chart 3, RHS). However, this aggregate is skewed by money market flows. Within long-term assets, ETFs dominate with €100.51bn, compared with €65.94bn for active mutual funds and €25.57bn for index mutual funds.
By contrast, money market flows are concentrated in active mutual funds (€49.31bn), with smaller contributions from ETFs (€6.98bn) and index funds (€2.94bn).
This highlights a clear divide: ETFs seem to be leading long-term investment demand—particularly passive equities—while active mutual funds dominate liquidity and cash management strategies.
Fund Flows by Lipper Global Classification
Fund Flows by Lipper Global Classification, March 2026
Chart 4: Ten Best- and Worst Lipper Global Classifications by Estimated Net Sales, March 2026 (€bn)
Source: LSEG Lipper
Overall, March data show a rotation away from bonds and non-domestic cash vehicles (specifically, USD and TRY), with inflows directed towards multi-asset and selective equity exposures, as the month’s flows were led by mixed-assets and diversified equity classifications.
Mixed Asset GBP Aggressive – Global was the top-selling classification at €3.71bn (entirely MF), followed by Equity Global, with the latter exhibiting a large-scale rotation from mutual funds to ETFs (+€3.35bn: -€3.05bn MF/+€6.4bn ETF).
Money Market EUR (+€3.04bn: +€0.39bn MF/+€2.65bn ETF), Equity Switzerland (+€2.63bn: +€1.20bn MF/+€1.43bn ETF), and Equity Sector Energy (+€2.60bn: +€0.99bn MF/+€1.60bn ETF) also featured among the leading inflows—the latter, unsurprisingly so, as energy prices soared over the month.
It was clearly a good month for Swiss assets, as other classifications in positive territory included Real Estate Switzerland (+€2.57bn), Mixed Asset EUR Flexible – Global (+€1.90bn), Bond Global Corporates USD (€1.79bn: €0.68bn MF/€1.11bn ETF), and Equity Europe ex UK (€1.45bn).
At the bottom of the rankings, Money Market TRY (-€9.05bn) and Money Market USD (-€7.95bn: -€9.09bn MF/+€1.14bn ETF) saw the largest outflows, followed by Equity Sector Financials (-€4.19bn: -€0.43bn MF/-€3.76bn ETF). Fixed income weakness was also evident, with Bond EUR (-€1.79bn), Bond Global USD (-€1.77bn), Bond USD High Yield (-€1.95bn), and Bond EUR High Yield (-€2.47bn) all seeing redemptions.
Equity outflows were led by Equity US (-€2.20bn), with investors continuing to trim the large exposures in this classification built up particularly over 2024, and Equity Asia Pacific ex Japan (-€1.92bn).
Fund Flows by Lipper Global Classification, Year to Date
Chart 5: Ten Best- and Worst Lipper Global Classifications by Estimated Net Sales, December 31, 2025, to March 28 (€bn)
Source: LSEG Lipper
Year-to-date flows are led by money market and broad equity classifications.
Money Market EUR ranks first with €47.05bn, predominantly active, followed by Equity Global (+€26.31bn: +€2.88bn MF/+€24.02bn ETF), Equity Emerging Markets Global (+€25.07bn, split 50/50 MF and ETF), and Equity Europe (+€14.64bn, with +€10.19bn of this to ETFs) also feature prominently,. This indicates that investors are looking for alternatives to the US equity market—albeit with a large slice of US equities with Equity Global.
Nevertheless, Money Market USD (+€19.45bn) attracted cash, as did Bond Global USD (+€9.30bn: +€5.48bn MF/+€3.82bn ETF) and Mixed Asset USD Flexible – Global (+€6.53bn).
Bond Emerging Markets Global LC (+€8.54bn, mainly to MFs) retains its popularity, likely helped by dollar weakness. Other notable inflows include Equity Global Income (+€6.92bn) and Equity Switzerland (+€6.23bn), indicating strong flows over Q1 to this classification.
In negative territory, Money Market TRY (-€6.20bn, all MF), Equity Sector Information Technology (-€4.22bn—again, mainly MF), and Bond GBP Corporates (-€4.11bn) saw the largest outflows. Additional redemptions were recorded in Equity UK (-€3.15bn), Equity China (-€3.01bn), and Target Maturity Bond EUR 2020+ (-€2.84bn).
Fund Flows by Promoter
Fund Flows by Promoter, March 2026
Chart 6: Ten Best-Selling Fund Promoters in Europe, March 2026 (€bn)
Source: LSEG Lipper
The top-10 money-taking fund management companies in March attracted €28.75bn.
Flows were led by Royal London (+€5.51bn, entirely MF), followed by Amundi (+€4.32bn: +€2.10bn MF/+€2.21bn ETF) and Vanguard (+€3.81bn: +€0.76bn MF/+€3.04bn ETF).
Goldman Sachs (+€3.42bn: +€2.88bn MF/+€0.53bn ETF) and UBS Asset Management (+€2.99bn: -€0.90bn MF/+€3.89bn ETF) also ranked among the top promoters.
Santander (+€2.30bn), Insight (+€1.73bn), Credit Mutuel AM (+€1.70bn), State Street (+€1.50bn), and ABN AMRO (+€1.48bn) completed the top group, with flows largely driven by mutual funds.
Overall, March saw a more balanced promoter landscape, with several mutual fund-focused houses leading flows during the broader market outflows.
Fund Flows by Promoter, Year to Date
Chart 7: Ten Best-Selling Fund Promoters in Europe, December 31, 2025 – March 28, 2026 (€bn)
Source: LSEG Lipper
The year-to-date picture remains characterised by ETF concentration among a small number of global providers, alongside broader mutual fund participation across fixed income and allocation strategies.
Year-to-date, BlackRock leads with €31.82bn, driven by ETF inflows (+€34.26bn) despite mutual fund outflows (-€2.45bn). Amundi (+€19.70bn) and DWS (+€18.34bn) follow, both with balanced MF and ETF contributions, while Vanguard (+€14.43bn) and UBS Asset Management (+€13.34bn) also feature prominently.
PIMCO (+€11.93bn) and Northern Trust (+€7.88bn) stand out as mutual fund-led houses.
