Assets held by custodians in Germany continue to grow
German investment fund assets held by custodians in Germany have increased by 4 percent in the first half of 2017, according to the latest data released by industry association BVI.
The fund industry is dominated by ten key players which oversee 90% of the German market.
Frankfurt-based BNP Paribas Securities Services (BNP PSS) is leading the list with €423bn in assets under custody, followed by State Street Bank International, which holds €292bn and BNY Mellon Asset Servicing, which holds €202bn.
The French group BNP PSS is dominating the German market due to its focus on Spezialfonds, the German investment vehicle of choice. As of June 2017, 1.5trn, more than half of the German fund industry is managed in Spezialfonds, according to BVI data.
State Street on the other hand focusses on looking after mutual fund assets.
Overall, the 40 custodians present in Germany are currently responsible for about 2trn of the 2.9trn in assets managed by the German fund industry. The remainder of assets is either held in independent mandates (€400bn) or in international mutual funds which are distributed in Germany (€500bn is currently held in round-trip and cross-border funds).