European Asset Managers: Eur Trads To Benefit From Strong Markets Into Q2

Research evidence excerpt

European Asset Managers: Eur Trads To Benefit From Strong Markets Into Q2

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06 Jul 2026 00:00:13 ET │ 45 pages

European Asset Managers

Eur Trads To Benefit From Strong Markets Into Q2

CITI'S TAKE

Nicholas Herman AC

European traditional managers flows appear to have delivered another quarter of +44-20-7986-4203

solid net inflows in 2Q26, supported by favourable markets. Net inflows continue to nicholas.herman@citi.com

be driven by passive and active fixed income, while, encouragingly, demand for

multi-asset appears to be recovering. Management fee growth outlook should also Hannah Leivdal

be supported by strong markets, particularly in EM, which bodes positively for future +44-20-7500-4475

demand and for fee margins. Ahead of 2Q26 results, we are above VA consensus hannah.leivdal@citi.com

expectations across all covered names, but especially ABDN and EMG. At sector

level, we prefer exchanges and wealth platforms over asset managers, given the Andrew Lowe, CFA

latter’s greater relative gearing to increasingly narrow and volatile markets. Within +44-20-7986-4042

Alts, our preferred names remain BPT and CVC, reflecting attractive earnings upside, andrew.lowe@citi.com

strong fundamentals and discounted valuations. Within traditional managers, we

favour wealth-exposed franchises, with ABDN offering particularly compelling

earnings and re-rating potential.

Flows Remain Robust — Sector flows remain healthy. In June, net flows across

tracked assets (but excluding low-margin money market (MM) assets) were stable

at +0.3% of AUM. Over 2Q26, ex-MM net flows totaled +1.1% of AUM, at a 5% run-

rate and broadly stable vs the prior two quarters. Sector AUM grew by 7.0% in US$

terms. Passive strategies remained the key driver of inflows (growing at c11% run-