Assets under management in Germany rose by 9%, shows 2023 data

Assets under management for private and institutional investors in Germany rose by 9% to €4,149 billion in 2023, according to German Investment Funds Association BVI.

In 2023, open-ended retail funds experienced a turnaround, attracting €12.9 billion in new investments following a €3.4 billion outflow in 2022, BVI data showed.

Institutional sales reached €49.5 billion, with €33.7 billion from open-ended Spezialfonds (German fund structures for institutional investors), €10.9 billion from mandates, and €4.9 billion from closed-ended Spezialfonds. According to BVI, this positive trend in fund sales extended into 2024.

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Open-ended Spezialfonds dominate as the largest fund group, with €2,079 billion in assets, along with €634 billion in mandates. Retail funds managed €1,382 billion, while closed-ended funds handled €54 billion.

Equity funds led retail sales with €12.9 billion in inflows, driven by global equity funds attracting €16.9 billion, while €3.2 billion flowed out of Germany-focused equity funds. ETFs received €10.2 billion in inflows, while actively managed equity funds attracted €2.7 billion.

Bond funds rebounded with €12.7 billion in new investments in 2023 after a €16.5 billion outflow in the previous year. Corporate bond funds led with €4.9 billion, followed by euro bond funds with €4.5 billion. Bond ETFs attracted €7.9 billion in inflows, pushing total bond fund assets to €211 billion.

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Property funds saw a decline, with €0.1 billion in new investments in 2023, managing net assets of €131 billion. Balanced funds experienced outflows of €15.5 billion. Open-ended Spezialfonds attracted €33.7 billion in inflows, significantly less than the previous year’s €62.7 billion.

Retirement benefit schemes lead in assets under management at €716 billion, followed by insurance companies with €541 billion in Spezialfonds investments, together holding 60% of total assets, highlighting the asset management industry’s significant role in old-age provision in Germany.

“2023 was marked by geopolitical crises, ongoing inflation and the comeback of interest rates. Against this backdrop, the industry recorded remarkable new business in Germany with a total of EUR 63 billion in funds and mandates,” said Dirk Degenhardt, president, BVI.

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