BVI: German fund industry reaches new record high

The German fund industry saw investment funds post inflows to the tune of €1.5bn net, with open-ended Spezialfonds attracting €2.5bn in new money in May 2018. Open-ended retail funds registered outflows of €1.1bn, while closed-ended funds brought in €0.1bn. Year-to-date, investment funds raised €45bn net. Discretionary mandates recorded outflows of €11bn.

Balanced funds posted inflows
With inflows to the tune of €2.5bn, balanced funds topped the sales chart for open-ended retail funds, managing assets totalling €278bn as at the end of May. This equates to 27% of total retail fund assets (€1,047bn). Actively managed equity funds registered inflows in the amount of €1.3bn. Equity ETFs recorded outflows of €1.1bn. Managing assets totalling €398bn, which equates to a 38% share, equity funds are the largest group by volume. Bond funds registered outflows to the tune of €1.9bn. Of these outflows, €1.8bn related to funds that predominantly invest in short-term bonds. Bond funds manage assets in the amount of €210bn. On balance, investors withdrew €2.3bn from money market funds, having a volume of €17bn.

ETFs account for 13% of retail fund assets
Since the end of 2010, assets under management in exchange-traded index funds (ETFs) doubled, from €68bn to their current level of €137bn. As a result, their share in open-ended retail funds grew from 9.6% to 13.1%. Just under 90% of ETF assets are held by institutional investors. At €115bn, equity ETFs are the largest group by volume, followed by bond ETFs at €18bn. At the end of May 2018, fund companies managed assets of €665bn in ETFs across Europe. At a share of 21%, Germany is the largest sales market.

Ridhima Sharma
Ridhima Sharma speaks German and is DACH Correspondent for InvestmentEurope. She has more than 8 years of experience in the media industry. Before joining us, she was working in India and covering automotive and lifestyle sectors. Over the years many of her stories have been published in various magazines across India.

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