The European fund industry enjoyed inflows over the course of November 2024. These inflows occurred in a positive market environment. While most equity markets were on the rise despite the high valuations of the market leaders over the course of the month, some bond segments faced the impacts from rising rates as yield curves have somewhat started to normalize. This might also be the reason why investors are somewhat nervous and reacting quickly on any news that may impact the current market environment negatively. That said, the election of Donald Trump as the next US president had a positive impact

The European fund industry enjoyed inflows over the course of September 2024. These inflows occurred in a positive market environment. Equity markets were rising further despite the high valuations of the market leaders. This might also be the reason why investors are somewhat nervous and reacting quite fast on any news that may impact the current market environment negatively. An example of this was the short-term market turmoil in August when investors had to unwind their yen-based carry trades after the yen increased sharply in value compared to the U.S. dollar. This is not only true for economic news, as

The European fund industry enjoyed general inflows over the course of July 2024. These inflows occurred in a positive market environment. Nevertheless, equity markets looked somewhat vulnerable given the high valuations of the market leaders. With regard to this, it is not surprising that investors are nervous and reacting quite fast on any news that may impact the current market environment negatively. This is not only true for economic news, as the geopolitical tensions in the Middle East, especially the developments around the Red Sea, are seen as a risk for the general economic growth in Western countries since a

The European fund industry enjoyed healthy inflows over the first half of 2024. Opposite to mutual funds, ETFs had estimated net inflows in every month so far. These inflows into mutual funds and ETFs occurred in a generally positive market environment. Nevertheless, equity markets looked somewhat vulnerable given the high valuations of the market leaders. With regard to this, it is not surprising that investors are nervous and reacting quite fast on any news that may impact the current market environment negatively. This is not only true for economic news, as the geopolitical tensions in the Middle East, especially the

The European fund industry enjoyed general inflows over the course of April 2024. These inflows occurred in a further unstable market environment since the geopolitical tensions in Middle East increased over the course of the month. Especially the developments around the Red Sea may impact the economies in western countries since a number of shipping companies these days avoid the passage of the Suez channel. It is, therefore, to be expected that the prolonged delivery times will cause some tensions for the still vulnerable delivery chains. Market sentiment was further driven by hopes that central banks—especially the U.S. Federal Reserve—have

It’s fair to say that 2023 was a challenging year for portfolio managers around the globe since the markets were driven by a number of different factors and unpredictable incidents. Each of these could have caused a major market downturn on their own. First of all, there were a lot of geopolitical tensions around the globe beside the still ongoing war in Ukraine, which showed that democratic states might be more vulnerable than one may think. The concerns of investors, especially in Europe, increased toward the end of 2023 since the actions taken by the Houthi rebels in the Red

The European fund industry witnessed overall inflows over the course of November 2023. These inflows occurred in a further unstable market environment in which some asset classes nevertheless showed positive results while others performed negatively. That said, it seems like European investors moved from an overall cautious sentiment to a somewhat more positive sentiment, as equity and bond funds enjoyed inflows over the course of the month. These inflows might also be seen as an indicator that European investors preparing themselves for a year-end rally on the equity markets and lower interest rates over the course of the year 2024.

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 the year 2022 so far has been in general a negative period for the European fund industry given the geopolitical situation in Europe, the still ongoing COVID-19 pandemic, disrupted delivery chains, rising inflation, increasing interest rates, and the resulting 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. Note: As this report also covers markets outside the EU, such as

Given the general market environment over the course of August 2022, it was not 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 investors. The promoters of mutual funds (-€12.3 bn) faced outflows while the promoters of ETFs (+€1.1 bn) enjoyed inflows. With regard to the accelerating rise of inflation rates and various other economic uncertainties, it is not surprising that

The general economic outlook for the second half of 2022 and beyond is marked by geopolitical tensions in Europe and Asia, high inflation rates, increasing interest rates, and disrupted delivery chains. Rough market conditions are often linked to outflows from mutual funds and, therefore, it is not surprising that the European fund industry faced overall outflows for 2022 year to date. If a fund promoter faces outflows, they often start to review their existing product ranges to close non-profitable funds or merge funds with similar investment objectives since this reduces costs and helps to keep profitability up. But fund promoters

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