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 inflows over the course of March 2024. These inflows occurred in a further unstable market environment since the geopolitical tensions in Middle East, especially the Red Sea, increased over the course of the month. Nevertheless, since a number of shipping companies these days avoid the passage of the Suez channel, it is 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 reached the last phase of their fight against high and further

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 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

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 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 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

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 further in a risk-on mode over the course of September despite the increased volatility in securities markets. Given the general market environment, it was no surprise that September 2021 was a month with mixed results for the European fund industry since the promoters of mutual funds (-€20.5 bn) faced outflows, while the promoters of ETFs (+€13.0 bn) enjoyed inflows. The overall flow pattern in Europe showed that investors continued to be in risk-on mode in September as the general flow pattern was driven by money market products. In more detail, investors bought further into risky assets as

European investors were further in a risk-on mode over the course of August. Given the general market environment it was no surprise that August 2021 was another positive month for the European fund industry since the promoters of mutual funds (+€63.4 bn) and ETFs (+€9.8 bn) enjoyed inflows. The overall flow pattern in Europe showed that investors continued to be in risk-on mode in August despite high inflows into money market products. In more detail, investors bought further into risky assets as long-term funds (+€59.5 bn) enjoyed the highest inflows, while money market products (+€13.8 bn) also enjoyed estimated net

It was no surprise that the European fund industry’s positive flow trend continued in the second quarter of 2021 since the COVID-19 pandemic in Europe was easing further. As a result, European investors continued to be in risk-on mode and the overall flow pattern in Europe normalized further. Within this environment the assets under management in the European fund industry rose from €12.3 tr (as of December 31, 2020) to €14.3 tr at the end of Q2 2021. While ETFs held €1.2 tr, or 8.23% of the assets under management in Europe, the vast majority (€13.1 tr, or 91.77%), were