Assets Under Management in the European Fund Industry The assets under management within the European fund industry increased within the volatile but positive market environment over the course of Q1 2023. Therefore, it is no surprise that assets under management for all product types with the exception of real estate funds have increased. In more detail, the assets under management in the European fund industry increased from €13,313.1 bn as of December 31, 2022, to €13,809.3 bn at the end of March 2023. Graph 1: Assets Under Management in the European Fund Industry, January 1, 2002 – March 31, 2023

It was not surprising that March 2023 was in general a positive month for the European fund industry given the rather positive revisions of the economic outlooks for the major economies globally and a possible end of the interest hiking cycle of central banks in the near future. That said, mutual fund promoters (-€2.0 bn) faced outflows, while ETF promoters (+€13.0 bn) enjoyed inflows. The outflows from actively managed funds were driven by outflows from mixed-assets products (-€13.7 bn). Within the current market environment, it is somewhat surprising that European investors sold mixed-assets products since these products were European investors

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

It was not surprising that May 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 (-€32.3 bn) faced outflows, while the promoters of ETFs (+€2.5 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 further sold money market products (-€6.5 bn) over the course of May