Highlights
- European mutual funds and ETFs suffered net redemptions of €8.29bn in September (mutual funds -€42.51bn/ETFs +€34.22bn)
- Equities were the best-selling asset class (+€13.75bn), entirely driven by ETFs (+€25.50bn). Mixed assets followed with inflows of €10.19bn
- Money market funds saw substantial redemptions (-€34.70bn), led by Money Market EUR (-€18.75bn), with USD, GBP and TRY classifications also seeing outflows
- Equity US (+€7.34bn) and Equity Global (+€7.04bn) led classification inflows
- Year-to-date inflows reached €662.64bn, with equities comfortably ahead (+€272.35bn), almost entirely ETF-led (+€267.78bn), followed by bonds (+€173.59bn) and mixed assets (+€100.92bn)
Executive Summary
September’s European fund flows reflected an uneasy coexistence of resilient equity markets and pressure on bonds and money market funds. Corporate earnings and economic activity continued to support risk appetite, with large-cap US technology retaining its appeal. However, renewed US-Iran tensions pushed Brent crude above $100 a barrel, adding to inflation concerns as the Federal Reserve and European Central Bank (ECB) raised rates. Sovereign yields climbed sharply, leaving investors navigating an uncomfortable combination of equity optimism and tighter financial conditions.
Against this backdrop, European mutual funds and ETFs recorded net redemptions of €8.29bn. Equities were the best-selling asset class (+€13.75bn), with ETF inflows of €25.50bn more than offsetting mutual fund redemptions of €11.74bn. Once again, investors were willing to buy equity exposure, but preferred exchange-traded implementation.
Mixed assets also attracted €10.19bn, almost entirely through mutual funds, while alternatives added €2.91bn. Bonds, by contrast, slipped into redemptions (-€0.87bn), as mutual fund withdrawals of €8.16bn overwhelmed ETF buying of €7.29bn. That weakness is unsurprising given the rise in government yields, although it also underlines the continuing divergence between mutual funds and ETFs. ETFs have long held sway in equities; are we beginning to see the same in fixed income?
The heaviest selling came from money markets (-€34.70bn), with mutual funds accounting for €35.82bn of withdrawals. This was not simply a switch between currencies as investors seek to hitch a ride on the most advantageous rates: Money Market EUR
(-€18.75bn), TRY (-€7.18bn), USD (-€5.79bn), and GBP (-€2.91bn) all suffered outflows. Some cash may have been redeployed into longer-term assets, but the scale of withdrawals relative to inflows elsewhere suggests cash management activity also played a role.
At the classification level, Equity US (+€7.34bn) narrowly led Equity Global (+€7.04bn), although the latter’s €14.02bn ETF inflows were partly offset by €6.97bn of mutual fund redemptions. Equity Sector Information Technology (+€2.42bn) remained in favour, while Equity US Small & Mid Cap (-€2.09bn) lagged, consistent with September’s narrower large-cap technology leadership.
Geographic preferences remain selective, as equity cash is parked in the broadest possible vehicles. Equity Emerging Markets Global lost €1.30bn in September despite €33.33bn of YTD inflows. Meanwhile, Equity UK has shed €6.03bn this year, despite the FTSE 250’s strong third-quarter performance, while Equity Europe ex UK fared worse still (-€8.89bn).
Year-to-date inflows stand at €662.64bn, led by equities (+€272.35bn), almost entirely through ETFs, followed by bonds (+€173.59bn). Money markets remain positive at €79.78bn.
Asset Type Flows
September 2026
Chart 1: Estimated Net Flows by Asset and Product Type – September 2026 (€bn)
Source: LSEG Lipper
September saw net redemptions of €8.29bn from European mutual funds and ETFs, albeit with an underlying sharp divergence between product types and asset classes. Mutual funds shed €42.51bn, while ETFs attracted €34.22bn.
Equities were the best-selling asset class (+€13.75bn), driven entirely by ETFs (+€25.50bn), as mutual funds suffered redemptions of €11.74bn. This suggests investors remained willing to add equity risk, albeit overwhelmingly through liquid, low-cost vehicles.
Mixed assets attracted €10.19bn, almost exclusively through mutual funds, while alternatives gathered €2.91bn. Bonds, meanwhile, slipped into redemptions (-€0.87bn), with mutual fund outflows (-€8.16bn) only partially offset by ETF buying (+€7.29bn).
By contrast, money market funds saw substantial outflows (-€34.70bn), all this and more from mutual funds (-€35.82bn). It’s hard to say what triggered this. Often, we see flows into one currency as investors exit another, but September’s selling was broad-based, with EUR, TRY, USD, and GBP all selling off (see chart 4). This could signal a redeployment of cash into longer-term assets, as investors move from risk-on to risk-off. However, the relatively modest inflows elsewhere suggest liquidity withdrawals may also reflect institutional cash management activity.
Recoiling from August’s positive showing, bond funds also saw redemptions (-€869m), diverging strongly between mutual funds
(-€8.16bn) and ETFs (+€7.29bn), with September being a rough month in performance terms for the asset class.
Year to Date
Chart 2: Estimated Net Sales by Asset and Product Type, Year to Date (€bn)
Source: LSEG Lipper
Year-to-date net inflows to European mutual funds and ETFs reached €662.64bn at the end of September, with ETFs (€346.95bn) continuing to outpace mutual funds (€315.68bn).
Equities remain comfortably the best-selling asset class (+€272.35bn), with almost the entire total attributable to ETFs (+€267.78bn), compared with just €4.56bn for mutual funds. That striking divergence underlines the continuing structural migration towards equity exposure via the vehicle, which in itself implies investors opting for low-cost passive exposure at the expense of active management. With a relatively narrow (if broadening of late) cohort of stocks driving the bulk of global returns, it’s possible they feel that the effort of actively turning over stones to find overlooked opportunities isn’t worth the additional expense in this market.
Bonds rank second (+€173.59bn), with mutual funds accounting for the majority (€113.18bn), suggesting continued demand for income and diversification despite an uncertain rates backdrop.
Mixed assets have attracted €100.92bn, almost entirely through mutual funds, while money market funds’ heavy September redemptions cause them to drop a place while remaining firmly positive (+€79.78bn).
Alternatives have gathered a further €26.41bn, with commodities (+€7.45bn) also positive. Notably, all asset classes remain in positive territory YTD.
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 continue to dominate the European fund industry in terms of total net assets (TNA), accounting for €14.10trn, or 71% of total assets, compared with €3.25trn in ETFs (17%) and €2.45trn in index-tracking mutual funds (12%).
The year-to-date flow picture, however, tells a rather different story. ETFs have attracted €346.95bn, comfortably ahead of active mutual funds (€266.41bn), while index mutual funds gathered €49.27bn. That ETF dominance is particularly pronounced in long-term assets, where exchange-traded products have taken €330.96bn, more than double the €155.46bn attracted by active mutual funds. Index mutual funds, meanwhile, gathered a comparatively modest €44.16bn.
By contrast, money market demand remains overwhelmingly concentrated in active mutual funds (+€110.95bn), compared with €15.99bn for ETFs and €5.11bn for index mutual funds.
In short, while active funds retain their commanding share of industry assets, ETFs are increasingly capturing new long-term allocations. Traditional mutual funds nevertheless remain the preferred vehicle for liquidity management, highlighting the increasingly distinct roles played by the different product structures.
Fund Flows by Lipper Global Classification
September 2026
Chart 4: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, September 2026 (€bn)
Source: LSEG Lipper
September’s classification rankings demonstrate a sharp contrast between continuing appetite for US and global equities and substantial redemptions from money market funds.
Equity US led inflows at €7.34bn (+€3.31bn MF/+€4.03bn ETF), narrowly ahead of Equity Global (€7.04bn). The latter, however, saw a striking divergence between vehicles, with ETF inflows of €14.02bn offset by mutual fund redemptions of €6.97bn, again highlighting the structural rotation towards exchange-traded exposure. In contrast, the three top-selling Equity US, which took about €4bn over the month, were all actively managed mutual funds.
Equity Global Income attracted €2.86bn, while Equity Sector Information Technology gathered €2.42bn, supported by renewed strength in US technology stocks, particularly software. However, this enthusiasm was far from universal. Equity US Small & Mid Cap lost €2.09bn, reflecting the narrower market leadership that saw the Russell 2000 lag large-cap US equities over Q3, despite outperforming over H1 2026.
Mixed Asset GBP Aggressive – Global (+€2.34bn) and Mixed Asset USD Flexible – Global (+€2.04bn) also featured prominently, both entirely mutual fund-led.
Money market funds dominated the bottom of the rankings. Money Market EUR suffered substantial redemptions of €18.75bn, with mutual fund outflows of €19.85bn partly cushioned by ETF inflows. Money Market TRY (-€7.18bn), Money Market USD (-€5.79bn), and Money Market GBP (-€2.91bn) also saw significant withdrawals. That broad reduction in liquidity holdings is notable given rising short-term rates, although it remains unclear how much of this cash was redeployed into risk assets.
Elsewhere, Equity Emerging Markets Global (-€1.30bn) and Equity Asia Pacific ex Japan (-€1.74bn) struggled, the latter against a backdrop of weak regional equity performance. Bond EUR Corporates (-€2.07bn) and Bond Global USD (-€1.72bn) also suffered as yields climbed.
Year to Date
Chart 5: Ten Best and Worst Lipper Global Classifications by Estimated Net Sales, Year to Date (€bn)
Source: LSEG Lipper
Equity Global comfortably leads at €104.68bn, of which €91.54bn went to ETFs. That suggests a large degree of agnosticism as to market direction and stability of leadership by invests—the old, if rather dated, adage that “no one gets fired for buying IBM”. Substitute Nvidia, Meta, etc.
Equity US ranks fourth (+€40.86bn), but that headline conceals €46.10bn of ETF inflows offset by mutual fund redemptions of €5.24bn. Equity Emerging Markets Global (+€33.33bn), despite September redemptions, and Equity Europe (+€15.57bn) also attracted considerable ETF demand, suggesting that equity allocations have extended beyond the US, even if September’s market leadership narrowed towards large-cap technology.
Liquidity nevertheless remains central to the picture. Money Market USD gathered €82.15bn, overwhelmingly through mutual funds (+€78.58bn), while Money Market EUR added €50.21bn. Both remain firmly positive year to date despite September’s substantial withdrawals.
Equity Global Income (+€20.29bn) also features prominently, while Mixed Asset USD Flexible – Global (+€16.55bn) and Mixed Asset EUR Flexible – Global (+€14.67bn) were almost entirely mutual fund-led.
Bond Global USD attracted €24.90bn, although its September reversal highlights the strain on fixed income from rising sovereign yields and tighter monetary policy, while Bond USD (-€5.43bn) is the only fixed income classification to stray into the shark-infested waters of the bottom of the table.
By contrast, the weakest classifications reveal persistent geographic selectivity. Equity Europe ex UK suffered the largest redemptions (-€8.89bn), despite Equity Europe’s positive total. Equity UK (-€6.03bn), Equity UK Income (-€3.89bn), and Equity UK Small & Mid Cap (-€3.35bn) also struggled, notwithstanding the FTSE 250’s relative strength over the third quarter. It’s interesting that, while many market commentators are highlighting the UK market’s diversification role in a heavily concentrate global equity market, alongside reasonable recent performance, investors aren’t buying it.
Elsewhere, Equity Asia Pacific ex Japan (-€5.91bn), Equity China (-€5.36bn), and Equity Sector Healthcare (-€4.82bn) saw outflows.
Fund Flows: Institutional v Retail
Chart 6: Asset Class Flows, Institutional v Retail, September 2026 (€bn)
Source: LSEG Lipper
Retail investors added €18.31bn, while institutions withdrew €26.60bn.
Equities attracted €13.75bn overall, despite institutional redemptions of €14.29bn, as retail buying of €28.04bn more than offset the selling. That contrast suggests retail investors remained willing to add risk, even as institutions trimmed exposure. Mixed assets were also strongly positive (+€10.19bn), supported by both retail (+€8.59bn) and institutional (+€1.60bn) demand.
Money market funds, by contrast, shed €34.70bn, with outflows almost evenly split between retail (-€17.20bn) and institutions
(-€17.51bn). This was the principal drag on aggregate flows, despite uncertainty around rates and inflation.
Bond funds lost €0.87bn, as retail redemptions outweighed institutional buying. Alternatives added €2.91bn, predominantly institutional.
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 investors. Retail investors contributed €456.36bn, more than twice the institutional total of €206.28bn, and their preferences differed markedly.
Equities provide the clearest contrast: retail investors accounted for €258.03bn of inflows, compared with just €14.31bn from institutions. This distinction is further underlined by September’s institutional equity redemptions, suggesting a more cautious stance among larger investors in a market believed by many to be richly valued. Mixed assets show a similar retail bias (€78.89bn versus €22.02bn).
Bonds, however, reverse that pattern. Institutions contributed €109.45bn, comfortably ahead of retail’s €64.14bn, while alternatives were also institutionally led (€15.83bn versus €10.58bn).
Money market demand was unusually evenly balanced, at €40.29bn retail and €39.49bn institutional, despite both groups withdrawing cash in September.
Elsewhere, both groups redeemed commodity funds, while institutional buying in real estate offset retail selling.
Fund Flows by Promoter
Chart 8: Ten Best-Selling Fund Promoters in Europe, September 2026 (€bn)
Source: LSEG Lipper
September’s 10 best-selling fund promoters gathered €37.01bn, led by BlackRock (+€9.59bn). Its €11.21bn of equity inflows and €4.16bn into bonds more than offset money market redemptions of €6.77bn, illustrating strong demand for long-term funds despite broader withdrawals from liquidity products.
Vanguard ranked second (+€6.42bn), with equities contributing €5.97bn, while Amundi followed (+€5.02bn), again largely equity-led (+€4.98bn) despite €1.18bn of money market outflows. This contrasts sharply with BNP Paribas (+€4.76bn), whose €5.02bn of money market inflows accounted for all and more of its net sales.
JPMorgan (+€2.49bn) and Morgan Stanley (+€2.20bn) were similarly supported by money markets, offsetting equity redemptions. Brooks Macdonald (+€2.29bn) benefited from equity and bond demand, while State Street Investment (+€1.91bn) was almost entirely equity-led.
Swisscanto (+€1.29bn) and UniCredit (+€1.04bn) completed the rankings. The leaderboard, then, combined concentrated equity buying with more selective demand for liquidity products.
Chart 9: Ten Best-Selling Fund Promoters in Europe, Year to Date (€bn)
Source: LSEG Lipper
Year-to-date, the 10 best-selling promoters attracted €380.69bn, representing 57.5% of European fund net sales. That concentration reflects the continuing strength of the largest global providers, although their sources of growth differ considerably.
BlackRock remains comfortably ahead (+€103.00bn), with equity inflows of €77.05bn and bond sales of €31.31bn more than offsetting money market redemptions of €10.41bn. Vanguard (+€62.44bn) and Amundi (+€46.80bn) follow, both predominantly equity-led, while DWS (+€31.48bn) also derives most of its flows from equities.
By contrast, HSBC (+€33.25bn) and JPMorgan (+€22.24bn) benefited heavily from money markets, attracting €18.41bn and €16.37bn, respectively. State Street Investment (+€29.18bn) was supported by both equity and money market demand, despite bond redemptions. UBS (+€18.75bn), PIMCO (+€18.08bn), and Invesco (+€15.48bn) complete the rankings.
