German fund industry attracts €49.6bn in H1 2016

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The German fund industry has attracted nearly €50bn of new inflows during the first half of 2016, representing the second strongest year since 2000 but lagging behind the record €110bn attracted in the first half of last year.

According to the latest data provided by the German Investment Funds Association BVI, Spezialfonds remained the key driver behind recent inflows, attracting €46.9bn, compared to €3.8bn for mutual funds, while mandates reported €1.1bn in outflows.

While multi-asset funds continue to remain the most popular strategy, attracting €4.6bn, investors were now increasingly allocating to funds with a higher fixed income exposure. Multi-asset funds now manage a total of €213bn in assets, representing roughly a quarter of all German mutual fund assets.

Open-ended real estate funds turned out to be the second most popular strategy among mutual fund investors, attracting €4.4bn throughout the first half of 2016.

All other asset classes reported outflows, equity funds turned out to be the most vulnerable, with €2.5bn being withdrawn in H1 2016, followed by capital protected funds (-€1.2bn), money market funds (-€0.6bn) and fixed income funds (-€0.2bn).

As of late June, the German investment fund industry manages €2.7trn of assets.