German sustainable fund assets touch €129bn in Q3
Since the end of March, sustainable fund assets have grown as much as 44%, according to latest data from German fund management association BVI. Since the publishing of Guidelines on Responsible Investing, BVI noted that the volume of sustainable funds grew by more than €100bn within a few years. For comparison, it added that the entire German fund market needed 40 years from its conception in 1950 to reach a comparable size.
Mutual funds recorded strong growth, managing €75bn of sustainable funds at the end of September – a 50% increase compared to the end of June. Sustainable special funds assets grew by €2bn to €54bn during this period. Mutual funds account for almost 60% of the sustainable fund market in Germany.
This strong asset growth in Q3 could be a reflection of late registrations (not reflected in the net inflows of funds). However, new business also developed dynamically. In the last three months, investors poured a net €5.1bn into sustainable mutual funds and €3.5bn even during the first quarter of 2020, in the middle of the Covid-19 pandemic. During the first quarter, conventional mutual funds recorded a net outflow of €14.6bn.
Among asset classes for mutual funds, equity and bond funds are on par with each other, accounting for 33% of total assets, followed by mixed funds (25%) and other asset classes playing a smaller role (due to limited range of products).