[ad_1]
FRANKFURT (dpa-AFX) – New business in the fund industry in Germany increased significantly in the second quarter despite the recent rise in interest rates. Overall, asset managers recorded net inflows of 22.8 billion euros in the months from April to June, according to the industry association BVI in Frankfurt on Thursday. In the first quarter, the industry had received 15.1 billion.
Open-ended mutual funds collected 6.0 billion euros net in the second quarter of the year. This product category is used by both retail investors and investment professionals. Open-end funds can be traded at any time.
Among the subcategories of open-end mutual funds, money market funds in particular saw inflows, amounting to 4.8 billion euros. However, according to the BVI, their new business usually fluctuates strongly compared with other funds. Recently, this category has benefited from the sharp rise in capital market interest rates, which are a consequence of the central banks’ fight against high inflation.
Against this background, the largest outflows were again recorded by mixed funds, this time with 1.9 billion euros. These can invest in both equities and fixed-income bonds, for example. Both asset classes generally suffer from rising interest rates, so the mix of product categories was evidently not perceived as attractive from the point of view of risk diversification.
Pure equity funds and pure bond funds, however, recorded further inflows of 2.5 billion and 0.7 billion euros, respectively. After all, the stock markets continued to recover in the second quarter, and even in an environment of rising interest rates, specialized bond managers are able to generate returns.
Open-ended special funds received 6.9 billion euros in the second quarter. They thus once again proved to be a pillar of new business. Special funds are set up for institutional investors such as insurers or pension funds.
Free mandates recorded inflows of 9.3 billion euros. Free mandates are asset management mandates that are managed outside investment funds./la/jsl/jha/
[ad_2]
Source link