German fund industry hits new record
Investment funds recorded inflows of €19bn net during May 2017. Of this volume, €10.9bn was invested in open-ended Spezialfonds, while open-ended retail funds accounted for €7.8bn and closed-ended funds for €0.3bn. Institutional investors withdrew €1.3bn from discretionary mandates. As a result, total new business amounts to €71.9bn year to date. As at the end of May 2017, the German fund industry managed assets totalling €2.9trn.
Strong demand for bond funds with near-money market rates
Bond funds attracting inflows to the tune of €3.5bn topped the sales chart in May, with bond funds that invest in euro-denominated bonds with a short residual maturity alone recording inflows of €1.6bn. In total, assets in the amount of €202.3bn are managed in bond funds. With inflows of €3.1bn, balanced funds ranked no. 2 in the sales chart. Of these inflows, €1.7bn were held in funds that invest in equal parts in equities and bonds. In total, the assets invested in balanced funds stood at €247.4bn. Equity funds recorded inflows of €1.3bn net during May 2017. With assets totalling €373.3bn, they remain the largest fund group in terms of volume.
Property funds: less office, more trade and gastronomy
As at the end of May, fund companies managed net assets in property funds totalling €161.5bn. Of this volume, €88.4bn was invested in open-ended retail funds, while open-ended Spezialfonds accounted for €70.6bn, closed-ended retail funds accounted for €1.4bn and closed-ended Spezialfonds made up €1.1bn. An analysis of open-ended property funds shows that Spezialfonds and retail funds have reduced the share of offices and professional practices over the past two years and instead increased the share of trade and gastronomy.
At 57%, retail funds still focus on offices and professional practices, ahead of trade and gastronomy with 25%. The hotel sector came in at third place, with its share growing from 4 to 7%. Within the Spezialfonds segment, offices and professional practices account for 38%, followed by trade and gastronomy with 30%. Residential properties increased their share from 6 to 9%.