Germans proved right to buy risk in November

German investors have been vindicated in their preference for equities mutual funds over balanced investments in November, even though share markets in Europe and globally dipped slightly that month

Among mutual funds those focused on equities took in Eur2.5bn from German investors in November, more than double the Eur1.1bn balanced funds received.

Global equities as represented by MSCI World fell 2.4% in November, but have risen 6.7% between 1 November and 14 January. In November MSCI Europe declined marginally, by 1.7%, but the index is up 6.4% by today.

Balanced funds still sold best in Germany over the calendar year to 30 November, according to Germany fund industry body the Bundesverband Investment und Asset Management.

They took in Eur14.1bn, almost double the Eur8.8bn inflows into equity funds.
Germans committed a net Eur 8.7bn to investment funds in November.

They put Eur80.9bn into them in the first 11 months of 2010, far more than the Eur63.3bn average inflows over corresponding periods between 2000 and 2009.

German investors also preferred locally-produced funds, as only two non-German management groups had products among the 15 best sellers from January to 30 November last year.

These were Franklin Templeton’s Global Bond fund, and SEB’s High Yield bond fund.

The top sellers list was, however, dominated by Allianz Global Investors (Premium Management Stabilitat and Allianz PIMCO Mobil-Fonds), DWS (DWS Top Dividende, db PrivatMandat Comfort – Pro Deutschland and Europa Defensiv) and BayernInvest (Bayerninvest Dynamic Alpha Fonds).

Three db-x tracker funds also appeared among the best sellers.

David Walker

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