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Germany’s balanced funds gain from equity outflows

GermanyGerman retail investors showed a marked preference for balanced funds at the expense of equities in March, figures from the country’s trade body suggest.

The BVI data shows that net flows for Germany’s open-ended retail funds industry favoured balanced funds, which collected €1.9 billion during the month.

At the same time, investors withdrew €1.3 billion from equity exchange-traded funds and €1.1 billion from active equity funds.

The inflows to balanced products were “significantly more” than in February, the BVI said, when these funds had raised €600 million.

“Falling prices at the stock exchanges” in March were behind the pattern of flows for new business in equity funds, the BVI added.

On a net basis during the month, the country’s open-ended retail funds business recorded outflows of €1.2 billion - though this contrasts with €12.4 billion of year-to-date inflows at the end of March.

The data includes funds not only domiciled in Germany, but wider funds including cross-border and so-called “roundtrip” funds that are collected in Germany.

Including other funds such as retail closed-end funds and ‘Spezialfonds’ for institutions, Germany’s funds industry saw €38 billion of total inflows from January through to the end of March, which the BVI said was more than the annual average seen in this period (€31 billion) in each of the last ten years.

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