Key Facts
• In 2025, U.S. stocks declined following Trump policy announcements.
• European stocks, led by Germany, gained attention for their steady performance.
• European equity-focused mutual funds saw increased inflows starting in 2024.
• Over the past five years, European equity fund balances hovered around ¥200 billion.
• By April 2025, European equity fund balances reached a five-year high of ¥240 billion.
• Approximately 75% of these funds invest broadly across Europe, totaling ¥180 billion.
• German equity-focused funds accounted for ¥44 billion, while thematic funds held ¥11 billion.
• High inflows were observed in 2025 for funds targeting undervalued growth stocks.
• Thematic funds focusing on European luxury brands gained popularity since June 2021.
• Newly launched funds in 2024 and 2025 attracted significant investments, including high-dividend and DAX index-linked funds.
Summary
In 2025, U.S. stocks faced declines due to Trump policy concerns, prompting investors to shift focus to European equities, particularly German stocks. European equity-focused mutual funds experienced notable inflows, with balances reaching a five-year high of ¥240 billion in April 2025. Broad European funds dominated, holding ¥180 billion, while German-specific funds accounted for ¥44 billion. Thematic funds, including those targeting luxury brands and high-dividend stocks, gained traction. Newly launched funds in 2024 and 2025, such as undervalued growth and DAX index-linked strategies, also attracted significant investments. This trend highlights growing interest in diversified and specialized European equity funds.
