BVI:10% of retail fund assets held by white label funds
German Investment funds raised €56.3bn net from the beginning of January to the end of July 2018, as reported by German Investment Funds Association (BVI). Of this volume, open-ended Spezialfonds accounted for €43.8bn, open-ended retail funds accounted for €12.2bn and closed-ended funds accounted for €0.3bn. In July alone, funds saw inflows to the tune of approximately €6bn. Investors withdrew €11.4bn from discretionary mandates since the beginning of the year. The fund industry manages assets totalling €3.1trn.
At €14.9bn, balanced funds topped the sales chart for open-ended retail funds. Of these inflows, €10.2bn went to fund products that invest world-wide in equal parts in equities and bonds. Property funds attracted €3.1bn in fresh capital. Equity funds recorded inflows in the amount of €1.7bn. Bond funds registered outflows to the tune of €3.6bn net, with this development having been brought about primarily by products with a focus on corporate bonds and euro-denominated short-term bonds totalling €3bn.
Almost 10% of retail fund assets, i.e. €98bn, are contributed by initiators that are neither part of the relevant fund company’s corporate group nor originate from any of the large insurance companies or credit institutions. 77% of the assets of these white label funds are attributable to German asset managers, who are generally also involved in the investment decision-making process, either in the capacity of advisers or external portfolio managers.
Funds representing assets to the tune of €15bn were incepted by private banks or church banks as initiators. Most of the foreign asset managers, who administer assets in the order of €6bn, are from Switzerland.