2022 was a remarkable year for investors around the globe. Some may call it a year for the history books. Major economic and geopolitical headwinds resulted in falling equity and fixed income markets around the globe. In the aftermath of the COVID-19 pandemic, investors were concerned about the still-disrupted delivery chains and increasing inflation rates when the year 2022 started. All these concerns became overshadowed by Russia’s invasion of Ukraine since this meant that investors had to rewrite their playbook for the year. The war in Ukraine led to increasing prices for energy and food, which fuelled the already increasing

The European fund industry enjoyed inflows over the course of January 2023 as the markets were further recovering. The generally positive market trend was driven by expectations of a possible end of the monetary policy tightening cycle by central banks around the globe and better than expected economic growth in the major economies, which would fuel company earnings. That said, the promoters of mutual funds (+€17.7 bn) and the promoters of ETFs (+€18.9 bn) enjoyed inflows. Within this market environment, it was not surprising that European investors sold money market products since these products are considered safe-haven investments. Therefore, one

Given the generally positive market environment over the course of October 2022, it was not surprising that the European fund industry enjoyed overall estimated inflows over the course of the month. That said, one needs to bear in mind that the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, disrupted delivery chains, increasing interest rates triggered by high and in some cases still further increasing inflation rates are all impacting investor expectations. With regard to this, the estimated flows at the asset type level show that European investors are further in risk-off mode as long-term funds faced overall outflows,

Given the positive market environment over the course of July 2022, it was somewhat surprising that the European fund industry faced outflows over the course of the month. That said, one needs to bear in mind that the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, disrupted delivery chains, an increasing inflation and increasing interest rates are impacting the expectations of the investors. The promoters of mutual funds (-€41.2 bn) and ETFs (-€0.4 bn) faced outflows. The outflows from ETFs were the first outflows from these products since March 2020. With regard to accelerating rise of inflation rates and

Assets Under Management in the European Fund Industry Given the current situation in the economies around the globe it was no surprise that the European fund industry faced declining assets under management over the course of the year 2022 so far, as the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, disrupted delivery chains, increasing inflation, and interest rate hikes put some pressure on the securities markets. Within this environment the assets under management in the European fund industry decreased from €15.3 tr (as of December 31, 2021) to €13.3 tr at the end of Q2 2022. While ETFs

It was not surprising that April 2022 was in general a negative month for the European fund industry given the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, disrupted delivery chains, and the sluggish market environment. That said, the promoters of mutual funds (-€20.5 bn) faced outflows, while the promoters of ETFs (+€14.2 bn) enjoyed inflows. Within this market environment and given the economic uncertainties, one would expect that European investors sold long-term funds and bought money market products. Therefore, it is somewhat surprising that European investors are still reluctant to buy money market products on a larger scale,

It was not surprising that Q1 2022 was in general a negative quarter for the European fund industry given the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, and the sluggish market environment. Within this market environment and given the economic uncertainties, one would expect that European investors sold long-term funds and bought money market products. Therefore, it is somewhat surprising that European investors sold money market products, which are normally considered safe-haven investments, while long-term products enjoyed overall inflows. In more detail, long-term funds enjoyed estimated net inflows of €25.0 bn, while money market products faced estimated net

Despite the deteriorating situation with regard to the COVID-19 pandemic and the sluggish market environment, it was not surprising that January 2022 was in general a negative month for the European fund industry. That said, the promoters of mutual funds (-€38.0 bn) faced outflows, while the promoters of ETFs (+€25.6 bn) enjoyed inflows. Within this market environment and given the economic uncertainties, it is somewhat surprising that European investors sold money market products, which are normally considered as safe haven investments. As a result, the overall fund flow numbers are heavily impacted by the high outflows from money market products

European investors were in general further in a risk-on mode over the course of November 2021. Given the volatile and sluggish general market environment it was somewhat surprising that November 2021 was a positive month for the European fund industry since mutual fund (+€64.1 bn) and ETF (+€13.5 bn) promoters enjoyed inflows. The overall flow pattern in Europe showed that investors continued to be in risk-on mode in November even as the general flow pattern was driven by inflows into money market products. In more detail, investors bought further into risky assets as long-term funds (+€45.3 bn) and money market

Over the course of the last few months—actually one could say the last few years—we witnessed a number of mergers and acquisitions in the asset management industry, which are somewhat reshaping the landscape of the global asset management industry. As these activities are happening in all parts of the asset management value chain, I view these corporate transactions rather as clear signs of a matured industry, and not a general consolidation. That said, some of the takeovers are leading to consolidation within their sectors since the number of competitors within these sectors will shrink after the transaction and/or the dominance

Despite the deteriorating situation with regard to the COVID-19 pandemic, January 2021 was another positive month for the European fund industry since the promoters of mutual funds (+€52.3 bn) and ETFs (+€15.2 bn) enjoyed inflows. Despite some economic uncertainties’ investors bought into risky assets. As a result, long-term funds enjoyed estimated net inflows of €78.4 bn, while money market products had estimated net outflows of €11.0 bn. Equity funds (+€51.6 bn) were by far the best-selling asset type overall for January 2021. The category was followed by bond funds (+€27.7 bn), mixed-assets funds (+€2.8 bn), and commodities funds (+€1.2 bn).

October 2020 was another positive month for the European fund industry since the promoters of mutual funds (+€69.2 bn) enjoyed inflows. Meanwhile, the market environment turned negative as the second wave of the COVID-19 pandemic hit major markets in Europe and investors feared a second coronavirus lockdown-induced economic downturn. Despite these fears, investors bought into risk assets as long-term funds enjoyed estimated net inflows of €51.9 bn while money market products had estimated inflows of €17.8 bn. As a result, long-term mutual funds posted overall net inflows for the month. Equity funds (+€30.4 bn) were the best-selling asset type overall