Germany’s fund industry gained €42.2 billion in net inflows in the first quarter of 2025, driven by interest in ETFs—particularly equity-based ones—according to data from the German fund association, BVI.
Open-ended retail funds saw the biggest gains, bringing in €32.5 billion, while institutional-focused Spezialfonds — German fund structures designed for institutional investors — added €9.9 billion. Closed-ended funds gained €0.8 billion, while investment mandates saw net outflows of €1.0 billion.
Equity funds led all asset classes, with net inflows of €15.3 billion. This growth was almost entirely powered by equity ETFs, according to BVI data, which alone accounted for €15.8 billion in new assets, offsetting the €0.5 billion in outflows from actively managed equity funds. Bond funds also performed strongly, bringing in €12.3 billion, with bond ETFs contributing €4.4 billion.
Balanced funds showed signs of recovery after nearly two years of consistent outflows, attracting €2.5 billion in Q1. However, real estate funds remained lost €2.1 billion as investor sentiment stayed cautious.
Funds Europe Awards 2025: Standing out in a crowded asset servicing market
The rise in ETF inflows also reflects a significant change in how ETF data is reported in Germany, highlighted BVI. Previously, only ETFs primarily targeting the German market were included in BVI figures. A new partnership with Clearstream, the central securities depository, now enables fund companies to access more comprehensive investor data, capturing a fuller picture of ETF activity.
As of March 31, 2025, Clearstream reported €468 billion in ETF assets held by investors in Germany. With additional holdings in other depositories like Euroclear, the total ETF market in Germany is estimated at €600 billion, making it the “largest in Europe”, ahead of the UK.
Despite this growth, BVI’s official reporting still shows €397 billion in ETF assets, due to not all fund managers adopting the new Clearstream-based method. Of this, €321 billion is in equity ETFs, with the remainder mostly in bond ETFs. As a result of the revised methodology, comparisons with pre-2025 data are no longer meaningful.
Germany’s fund companies collectively managed €4.56 trillion by the end of March 2025. Institutional Spezialfonds held the largest share at €2.18 trillion, including €776 billion for pension schemes and €522 billion for insurers. Retail open-ended funds accounted for €1.65 trillion, followed by €662 billion in mandates and €63 billion in closed-ended funds.
