22.09.10
The report highlights that net inflows turned positive again, with €250 million and €601 million net investment reported in June and July respectively. The continuing falls in German government bond yields and low returns that other Publikumsfonds, such as money-markets funds, are offering at the moment form part of the reason why some new capital has flown into the sector. With interest rates predicted to stay low, this is likely to prevail into the mid-term, with more capital reallocation away from bond and money-markets funds and into the higher yielding GOEFs.
Draft proposals for the GOEF sector reforms were released in early August. The suggestions concentrate on protecting smaller retail investors and were generally well received by the sector.
Overall the sector is a mix of contrasting fortunes – with some funds continuing to be under pressure and working on raising liquidity through asset disposals. On the other hand, the successful funds, such as those managed by Deka, RREEF, Union Investment, continue to be active on the buy side.
