German investment funds raise €51bn in H1 2018

The first half of the year saw investment funds in Germany recording inflows of new money to the tune of €50.7bn net. These inflows were for the most part generated by open-ended Spezialfonds, with €39.4bn. Open-ended retail funds brought in €10.5bn. Closed-ended funds collected €0.8bn net. Institutional investors withdrew €10.8bn from discretionary mandates. As at the end of June 2018, the German fund industry managed assets in excess of €3trn.

As in the previous two years, retirement benefit schemes, such as pension funds and pension schemes, topped the sales chart for open-ended Spezialfonds, entrusting Spezialfonds with new money amounting to €12.1bn net during the period from the beginning of January to the end of June 2018. This equates to roughly a third of Spezialfonds’ new business. Based on the total assets managed by Spezialfonds in the amount of €1.6trn, the share of retirement benefit schemes grew from 22% at the end of 2016 to 28 per cent. Insurance companies remain the largest investor group in terms of volume, investing assets worth €556bn. Since the end of 2016, their share has declined from 37% to 34%.

Balanced funds are topping the open-ended retail funds sales chart for the sixth consecutive year, raising €12.2bn net during the first half of 2018. As in the previous year, the focus was on products that invest equally in equities and bonds, accounting for €8.8bn.

Property funds recorded inflows in the amount of €2.7bn. Equity funds brought in €1.2bn. On balance, investors withdrew €2.9bn from bond funds. In particular funds investing in corporate bonds registered outflows (€1.9bn). Funds focusing on long term in euro-denominated bonds recorded inflows (€1.6bn).

Since the beginning of the year, net assets managed by closed-ended funds grew from €6bn to €7bn, of which €5bn is managed by closed-ended Spezialfonds and €2bn by closed-ended retail funds. At €0.7bn, Spezialfonds dominated new business during the first half of the year. By comparison, closed ended funds collected €2.9bn during the entire calendar year 2017, with Spezialfonds contributing €2.6bn. The statistics, which may also include companies that are not BVI members, take into consideration closed-ended funds incepted in accordance with the provisions of the German Capital Investment Code (KAGB) as well as comparable funds incepted abroad.

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.

Read more from Ridhima Sharma

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!