The German fund industry has reported a growth of 5% since the beginning of the year, reaching €3.977 billion in assets under management (AuM) by the end of September.
Open-ended Spezialfonds, mainly comprising retirement benefit schemes and insurance companies, account for €1.997 billion of this total. The industry also manages €1.326 billion in open-ended retail funds, €601 billion in mandates and €53 billion in closed-ended funds.
The first nine months of 2023 witnessed a net inflow of €55.4 billion into the industry. Equity funds led the sales, reversing last year’s trend with net new inflows of €11.5 billion, raising the total equity funds under management to €589 billion.
Bond funds also saw a turnaround, with new inflows totalling €6.9 billion, dominated by corporate bond-focused funds.
Money market funds followed with inflows of €4.3 billion. However, property funds experienced outflows in the third quarter, a shift from the inflows seen in the year’s first half. Balanced funds continued to see outflows, reaching €8.5 billion by the end of September.
Open-ended Spezialfonds recorded inflows of €27.4 billion, although this was lower than the previous year’s inflows. Changes in portfolio allocation in Spezialfonds are evident, with a shift towards more equities and diversified investments, including ETFs and other assets like real estate and infrastructure investments.
The Bundesbank reports that the bond proportion in Spezialfonds has slightly increased to 44%, while equity investments now account for 15%.
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