It was somewhat surprising that February 2023 was in general a negative 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. That said, mutual fund promoters (-€18.2 bn) faced outflows, while ETFs promoters (+€8.1 bn) enjoyed inflows. The outflows from actively managed funds were driven by outflows from money market products (-€18.8 bn). Within the current market environment, it is not surprising that European investors sold money market products since these products are considered as so-called safe-haven

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

Given the generally positive market environment in December 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, and increasing interest rates triggered by high inflation rates are all impacting investor expectations. Nevertheless, the estimated flows at the asset type level may indicate that European investors have shifted their positioning and are now somewhat in risk-on mode as long-term funds enjoyed overall inflows for the month. At the

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 general market environment over the course of September 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. In addition to this the market turmoil in the UK, the announcement of the so-called mini-budget at the end of September might have also contributed to the overall outflows from mutual funds and ETFs. The promoters of

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,

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 a mixed mood over the course of May, even as the COVID-19 pandemic in Europe has continued easing up further. Within this environment, May 2021 was another positive month for the European fund industry since promoters of mutual funds (+€19.9 bn) and ETFs (+€12.7 bn) enjoyed inflows. The overall flow pattern in Europe showed that investors continued to be in risk-on mode in May. In more detail, investors bought further into risky assets such as long-term funds (+€38.4 bn), while money market products (-€5.8 bn) faced estimated net outflows. In line with the general flow pattern,

European investors were in a mixed mood over the course of April, even as the situation with regard to the COVID-19 pandemic in Europe has been easing up. Nevertheless, April 2021 was another positive month for the European fund industry since the promoters of mutual funds (+€69.9 bn) and ETFs (+€16.6 bn) enjoyed inflows. The overall flow pattern in Europe has further normalized as investors in Europe continued to be in risk-on mode in April. In more detail, investors bought further into risky assets as long-term funds (€79.6 bn) and money market products (€7.0 bn) enjoyed estimated net inflows. As

Despite the deteriorating situation with regard to the COVID-19 pandemic, December 2020 was another positive month for the European fund industry since the promoters of mutual funds (+€99.1 bn) and ETFs (+€23.5 bn) enjoyed inflows. The high level of inflows was surprising since there were some uncertainties around the outcome of the presidential election in the US and a possible hard Brexit. In addition, investors fear a second coronavirus lockdown-induced economic downturn in Europe. Despite these fears, investors bought into risky assets as long-term funds enjoyed estimated net inflows of €90.6 bn, while money market products had estimated inflows of

European investors bought further back into mutual funds and ETFs in August. Since the global equity markets recovered further, investors returned to long-term mutual funds because they expected the massive stimulus packages from central banks and governments globally to keep interest rates low and to foster global economic growth after the lockdowns caused by the outbreak of COVID-19 are lifted in more countries around the globe. As a result, long-term mutual funds posted overall net inflows for the month. Bond funds (+€19.9 bn) were the best-selling asset type overall for August, followed by equity funds (+€11.0 bn), alternative UCITS funds