CACEIS NEWS 35

8 caceis news - No. 35 - October 2013

3131

Worldwide

Europe

Country Focus - Germany

Ireland Focus in the next caceis news

Source: EFAMA - September 2013

Source: EFAMA - September 2013

Worldwide Investment Fund Assets Q1 2013 (€ trillion)

Net assets of the European Fund industry Q2 2013 (€ billion) The combined assets of the investment fund market in Europe, i.e. the market for UCITS and non-UCITS, decreased by 1.7% during the second quarter of 2013 to stand at €9,233 billion at end June 2013. With €6,489 billion invested in UCITS, this segment of the business accounted for 70% of the European investment fund market at end June 2013, with the remaining 30% composed of non-UCITS.

Net assets of German investment funds (€ billion)

Investment fund assets worldwide increased 7.3% during the first quarter to stand at €23.78 trillion at the end of March 2013.

The German fund market accounts for around 15% of European assets under management. Total net assets of funds domiciled in Germany reached just over €1,374 billion at end July 2013. The increase of €32 billion since January 2013 is chiefly attributable to specialised funds which are reserved for institutional investors.

1,000 1,100 1,200 1,300 1,400

1,374

23.78

19.97 20.85 21.42 21.95 22.17

19.49 18.58

Country Austria Belgium Bulgaria

€bn 148

Share

900

1.6% 1.0%

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

89

800

2011

2012

2013

3 5

-

Total net assets Type Split - Q1 2013

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 700

Czech Republic

0.1% 1.9% 0.7%

Denmark

171

Equity

38%

July

Finland France

69

Money Market

15%

1,475 1,317

16.0% 14.3%

Germany

Source: Deutsche Bundesbank - July 2013

Bond

24%

Greece

7

0.1% 0.2%

Type of unitholder

Balanced

11%

Hungary

14

Funds assets, total: 1,374 billion

Ireland

1,278

13.8%

Other

12%

Italy

198

2.2% 0.3%

Specialised funds’ assets under management have risen steeply since the beginning of monetary union (+140%) compared with assets managed by retail funds which have grown at a distinctly slower rate of a little more than 50% since

Trends by investment type Q1 2013 (€ trillion)

Liechtenstein Luxembourg

31

Retail funds €357bn 26%

2,486

26.9%

Equity fund assets worldwide increased 10.8% during the first quarter to €9.0 trillion. Over the same period, net assets of bond funds grew 5.9% to stand at €5.6 trillion. Net assets of money market funds remained flat during the quarter at €3.6 trillion, whilst net assets of balanced/mixed funds recorded growth of 7.9% to stand at €2.6 trillion.

Malta

9

0.1% 0.7% 0.8% 0.4% 0.3%

Specialised funds €1,017bn 74%

Netherlands

67 77 38 25

Norway Poland Portugal Romania Slovakia Slovenia

4 4 2

- - -

Source: Deutsche Bundesbank - July 2013

Type of investment

Money Market Bonds Balanced

Equity

10

Funds assets, total: 1,374 billion

Spain

162 182 344

1.8% 2.0% 3.6% 0.3%

Sweden

8

Switzerland

Other funds

2% Money market funds <0%

6

Turkey

24

United Kingdom

1,004 9,233 6,489 2,744

10.9%

Equity funds 14%

4

Total UCITS

100.0%

70.3% 29.7%

2

Bond funds 28%

Funds of funds 5%

Non-UCITS

0

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Open-end real estate funds 9%

2011

2012

2013

Equity fund net assets decreased 2.6% to stand at €2,226 billion at quarter end. Bond fund net assets decreased 1% to €1,915 billion, whereas money market fund net assets reduced 6.7% during the quarter to €944 billion Net assets of balanced funds fell slightly (0.8%) during the quarter to €1,047 billion. European trends in assets by UCITS type Q2 2013 (€ billion)

Net Sales of Investment Funds Q1 2013 (€ billion)

Mixed securities-based funds 26%

Worldwide net cash flow to all funds was €320 billion in the first quarter, compared to €369 billion of net inflows in the fourth quarter of 2012. Flows into long term funds increased to €402 billion in the first quarter, the highest net sales figure for long-term funds ever. Outflows from money market funds were €82 billion in the first quarter of 2013.

Mixed funds 16%

Source: Deutsche Bundesbank - July 2013

Asset structure

Money market Bonds Balanced Other (incl.FoF)

Equity

2,400

While retail funds have slightly increased their equity ratios to 56% since 2002, specialised funds have cut their equity exposure from 20% in spring 2003 to 10% at last count. The bond exposure of specialised funds is currently very high at just over 70%.

Investment fund share 18%

2,000

Debt securities 60%

369

1,600

320

1,200

193

167

165

147

Shares 22%

102

99

800

83

400

Q3 Q4 -104

0

2010 Q4

Q2

Q3 Q4

2013 Q1

Q1

Q2

Q1

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q4

2011

2012

2011

2012

2013

Source: Deutsche Bundesbank - July 2013

Split by region of UCITS distribution Q1 2013

Net Sales of UCITS - Q2 2013 (€ billion)

Net sales of investment funds in Germany (€ billion)

UCITS recorded a sixth consecutive quarter of net inflows (€12 billion), despite registering a steep decline in demand during the second quarter of the year, due to increased net outflows frommoney market funds and reduced net sales of long-term UCITS.

Other 2.8%

Brazil 5 . 6%

Australia 5 . 7%

Net sales of specialised funds are much higher than those of retail funds. In 2012, specialised funds counted net inflows of €75 billion and retail funds of €25 billion. For the first seven months of 2013, specialised funds recorded net inflows of €42 billion compared to €36 billion for the previous similar period.

USA 49 . 5%

132

95

78

Europe 27.9%

January - July

2013

2012

2011

2010

2009

20

Retail funds

16

8

1

13

1

12

8

Specialised funds

42

36

19

29

6

-50

China 1 . 4%

-83

Japan 3.5%

Canada 3.6%

Source: Bundesverband Investment und Asset Management e.v. (BVI) - July 2013

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2011

2012

2013