German investors share a positive outlook on the next year, according to the latest survey conducted by German fund industry association BVI.
The poll, conducted among 373 members of the industry association, revealed that three quarter of respondents currently describe their business situation as “good” or “very good”, 80 percent expect that business will remain unchanged or improve throughout the next year.
M majority of respondents (64 percent) identified low interest rates as the key reason for the positive economic environment, followed by a growing demand for collective investment vehicles such as funds for example in retirement planning (52%). Half of all respondents also see the growing demand for alternative investments as a growth factor.
Key challenges going forward are geopolitical risks according to 59% of respondents, followed by regulatory requirements (52%) and a pressure on costs and margins (41%).
Thomas Richter, CEO of the industry association comments: “The fund industry currently faces a high level of pressures as a result of regulation. The industry is now in the process of implementing at least three major projects, Mifid II, PRIIPs and the reform of the Investment Tax (in Germany). Mifid II alone is the biggest regulatory project we ever had to implement” he stresses.