The German fund industry saw investment funds post inflows to the tune of €1.5bn net, with open-ended Spezialfonds attracting €2.5bn in new money in May 2018. Open-ended retail funds registered outflows of €1.1bn, while closed-ended funds brought in €0.1bn. Year-to-date, investment funds raised €45bn net. Discretionary mandates recorded outflows of €11bn.
Balanced funds posted inflows
With inflows to the tune of €2.5bn, balanced funds topped the sales chart for open-ended retail funds, managing assets totalling €278bn as at the end of May. This equates to 27% of total retail fund assets (€1,047bn). Actively managed equity funds registered inflows in the amount of €1.3bn. Equity ETFs recorded outflows of €1.1bn. Managing assets totalling €398bn, which equates to a 38% share, equity funds are the largest group by volume. Bond funds registered outflows to the tune of €1.9bn. Of these outflows, €1.8bn related to funds that predominantly invest in short-term bonds. Bond funds manage assets in the amount of €210bn. On balance, investors withdrew €2.3bn from money market funds, having a volume of €17bn.
ETFs account for 13% of retail fund assets
Since the end of 2010, assets under management in exchange-traded index funds (ETFs) doubled, from €68bn to their current level of €137bn. As a result, their share in open-ended retail funds grew from 9.6% to 13.1%. Just under 90% of ETF assets are held by institutional investors. At €115bn, equity ETFs are the largest group by volume, followed by bond ETFs at €18bn. At the end of May 2018, fund companies managed assets of €665bn in ETFs across Europe. At a share of 21%, Germany is the largest sales market.