In the first six months of 2023, Germany’s fund industry experienced a net inflow of €38 billion, a notable increase compared to the same period last year.
Retail funds led the charge, according to data provided by the German investment funds association, the BVI, with net sales jumping from €8.3 billion to €10.9 billion. However, institutional investors showed restraint, especially in Spezialfonds, which drew €18.5 billion, down from €47.1 billion in H1 2022.
By assets, Spezialfonds dominate at €2,015 billion, succeeded by open-ended retail funds at €1,334 billion. As of mid-2023, the fund industry in Germany managed an impressive €4,001 billion for both private and institutional investors, marking a 5% increase from the beginning of the year.
Equity funds were at the forefront of open-ended retail funds, attracting €9.4 billion. Actively managed funds contributed €5.3 billion, while ETFs brought in €4.1 billion.
Money market funds followed suit, albeit with fluctuations, drawing roughly €5 billion in Q2 after a near €2 billion outflow in Q1.
Bond funds focused on corporate bonds recorded a solid €2.7 billion out of the total €2.9 billion inflow this year.
However, balanced funds faced a setback with net outflows of €4.3 billion, continuing a trend from H2 2022.
Over the past five years, property funds have seen their net assets swell from €182 billion to €309 billion. A shift in strategy for open-ended property funds has been noted, with a growing emphasis on residential and warehouse properties.
While the share of trade and gastronomy properties dipped, offices remain a primary asset.
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