The German fund association BVI presented itself very satisfied with the past year at its virtual annual press conference on Thursday.

Because in 2021 old records in fund sales faded.

Net new money flowed into investment funds amounting to 256 billion euros.

That was more than the previous two years combined, although those two years also went well for the industry.

The old record of 2015 of 193 billion euros was exceeded by almost a third.

Martin Hock

Editor in Business.

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2021 was an exceptional year, said association president Alexander Schindler.

Inflation and low real interest rates, last seen in the 1970s, would have encouraged citizens to rediscover securities investments.

In each month of the previous year, an average of almost 200,000 new depots were opened.

"Many savers have apparently lost their chronic distance from securities investments," said Schindler.

Private investors invested 118 billion euros in new fund products, almost 60 percent more than in the previous peak year of 2000 and even adjusted for inflation, growth of almost a quarter.

More than half went into sustainable products, a share of 51 percent, which is slightly higher than in the previous year, when 20 billion euros flowed into sustainability funds.

Sustainability also played a prominent role in the work of the association.

The BVI is proud that the so-called target market concept was also agreed for sustainability consulting in Germany.

This sets standards as to when a fund fits a client's sustainability preferences.

Elsewhere in Europe, each bank has to decide this on a case-by-case basis.

Although this national special path is a small stumbling block in cross-border sales, said BVI general manager Thomas Richter, this barrier will have to be overcome.

In addition to location policy, the topic of old-age provision is on the association's agenda for the current year.

The BVI wants to resolutely defend itself against a state fund as part of private provision, as this represents a distortion of competition.

The currently planned strengthening of the statutory pension through capital cover is supported.

However, the 10 billion euros currently earmarked for this are not enough.

It is important to clarify how these could be increased through contribution payments.

In addition, they want to work to ensure that fund savings plans are recognized as an instrument for old-age provision.