December 16, 2025— In a turbulent year for financial markets, fund distributors in Europe are working to provide investors with some degree of certainty and diversification by bringing more asset managers with stable investment teams and top-notch risk management capabilities onto their platforms.

Europe’s private banks, retail banks, financial advisors (IFAs), and other fund distributors are focusing on managers that demonstrate two qualities that seem to be of special importance in today’s marketplace. First, distributors are favoring asset managers with stable investment teams. Second, distributors are welcoming managers with demonstrated risk-management expertise.

“In a time of intensifying market unpredictability, Europe’s fund distributors seem to believe that investment teams with long, successful tenures and proven risk-management capabilities are best positioned to navigate the market cycle and provide a sense of confidence to end investors,” says Christopher Dunn, Crisil Coalition Greenwich Head of Investment Management— Europe and coauthor of In volatile market, Europe’s fund distributors seek stability for end investors.

Fund Distributors Project Sustained Demand for European Stocks

Every year, Crisil Coalition Greenwich interviews gatekeepers for private banks, retail banks, IFAs, and other fund distributors for its annual European Intermediary Distributors Study. In 2025, the firm asked gatekeepers about the funds and managers on their platforms, the criteria they use in assembling platform offerings, and product demand and behaviors among their end investors.
 
Study participants believe the strong performance of European equities in Q1 2025 had a big impression on the end investors on their platforms. Distributors expect demand to remain relatively robust across all equity categories outside of U.S. stocks. That positive vibe extends to most other asset classes as well, especially alternatives. Distributors believe investors on their platforms will continue substantially increasing their exposure to private equity and debt, infrastructure, and commodities.

Fewer IFAs Requiring Sustainability Credentials

European IFAs are lowering sustainability requirements for investment funds on their platforms. In 2024, two-thirds of European fund distributors said they required all funds on their platforms to have a clearly articulated approach to sustainability. That share dipped to 57% in 2025. That decline could reflect the natural evolution of sustainability into a standard part of the investment process in European asset management, rather than any loss of momentum for the investment approach.

After all, if almost every fund has already integrated sustainability into its investment parameters, there’s little need for this type of platform-wide requirement. 
However, the growing divergence in sustainability approach between IFAs and other distributors is a trend worth watching.
 
“Given the increasing volatility of net asset flows into sustainable investment funds in Europe— and the strong pushback against ESG in the United States— it will be important to monitor the decisions and behaviors of IFAs and other fund distributors in coming months for additional clues about the future direction of sustainability in Europe’s wholesale investment market,” says Christopher Dunn.