“The German fund industry has reached several record levels over the past years, yet many investors, particularly in the retail segment, believe that there is something fishy about this recovery” argued Philipp Koch director at McKinsey & Company, speaking at Tag der Fondsmanager (Fund managers day), a one-day event dedicated to the fund industry in Germany.
The Frankfurt-based conference, which was jointly organised by B2B magazine Das Investment and fund data provider Lipper, considered key themes facing the industry over the coming year, including regulation fund flows and low returns.
The event was opened by Thomas Richter (pictured) CEO of the German Industry Association BVI, who highlighted the key challenges presented by upcoming changes in regulation, in particular Mifid II. He stressed the BVI’s role in campaigning against a potential ban on inducements, pointing out that the number of IFA’s in the UK has declined by 15-20% as a result of the RDR regulation.
Detlef Glow, head of EMEA Research at Lipper highlighted the growing importance of ETF’s , which according to Lipper constitute 14.5% of the overall market share. “In future, regulators such as Esma will increasingly consider whether active funds are really actively managed” he warned. Glow also pointed out that the ETF sector still has potential to increase its proportion of the market share: “There is still space for upward movements” he said.
Koch highlighted that despite fund flows pointing to economic recovery, many investors, particularly in the retail segment continue to be cautious, with the majority being wary to participate in the recent stock market rallies.
Picture by Christian Scholtysik