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German fund flows get back to normal after Covid-19 shock

German-real-estateFlows into German investment funds were back to pre-Covid-19 crisis levels at the end of the first half of the year.

Funds saw inflows of €37.9 billion in H1 – almost the same as the roughly €40 billion of new business seen in the same periods of 2018 and 2019, according to BVI, the German funds association.

Retail outflows of net €11.4 billion in Q1 reversed to become inflows of €15.7 billion during Q2, mainly in equity funds and balanced funds.

Property funds, which BVI described as a constant in the new business of retail funds, recorded new inflows of €1.2 billion during the second quarter. Q1 had been even more positive, at €3.9 billion.

Of the net €4.3 billion flowing into retail funds in the first half of the year, sustainable funds contributed €7.7 billion, while non-sustainable funds saw outflows €3.4 billion.

Funds for institutions, known as ‘spezialfonds’ saw their best start to the year since 2015, attracting inflows of €32.7 billion during the first quarter. Outflows followed in April and May as investors sought liquidity, but in June inflows returned - to the tune of €3.9 billion.

During the first half year, spezialfonds raised €33.3 billion, almost on par with the same periods in the previous two years.

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