German fund industry attracted inflows to the tune of EUR 24 billion during the first quarter
- Assets grew by 6 per cent
- Property funds and equity funds saw inflows
- Property funds focus more strongly on trade
Fund companies in Germany saw net inflows to the tune of EUR 24.5 billion during the first quarter 2019. At EUR 23.8 billion, open-ended Spezialfonds remain the driver of new business. Open-ended retail funds registered outflows totalling EUR 2.2 billion. The last time their new business in a starting quarter recorded a lower figure, at minus EUR 4.8 billion, was in the first quarter of 2014. Closed-ended funds brought in EUR 0.7 billion year to date, while discretionary mandates accounted for inflows to the tune of EUR 2.2 billion. As at the end of March, fund companies managed assets totalling EUR 3,136 billion. This equates to a six per cent increase since the end of December 2018 (EUR 2,954 billion).
During the first quarter, property funds topped the sales chart in the open-ended retail fund segment, collecting EUR 3 billion in net inflows.
Equity funds brought in EUR 1.4 billion, with actively managed funds accounting for EUR 2.4 billion in inflows and equity ETFs recording EUR 1 billion in outflows. Balanced funds effectively generated no new business at all. This was their weakest start to a year since 2009, when they registered outflows amounting to EUR 1.4 billion during the first three months. With outflows totalling EUR 5.1 billion, money market funds and bond funds shaped the sales picture in the retail fund segment. Euro short-term bond funds alone were sold by investors to the value of EUR 5.4 billion.
Property funds manage net assets in the amount of EUR 200 billion
The net assets in property funds managed by fund companies grew from EUR 175 billion (end of March 2018) to EUR 200 billion over the past 12 months. This equates to an increase of 14 per cent. Of this volume, open-ended retail funds accounted for EUR 101.1 billion, open-ended Spezialfonds accounted for EUR 92.2 billion and closed-ended funds accounted for EUR 6.3 billion.
An analysis of open-ended property funds shows that Spezialfonds and retail funds have reduced the share of office buildings over the past four years and instead increased the share of trade and gastronomy. At 55 per cent, retail funds still focus on offices, ahead of trade and gastronomy with 26 per cent. The hotel sector came in at third place, with its share growing from 4 to 9 per cent. Within the Spezialfonds segment, offices account for 33 per cent, followed by trade and gastronomy with 32 per cent. Residential properties more than doubled their share from 6 to 15 per cent.