Following Februaryâs unprecedented outflow, a further â¬769 million was withdrawn from the German open-ended funds in March. The year as a whole has seen a net outflow of â¬568 million. This compares to a positive inflow of â¬2 billion over the same period last year, and over â¬6 billion in both 2002 and 2003.
The largest positive inflow was into KanAmâs grundinvest fund, although this was just â¬98 million. On average, seven of the thirty funds experience a negative cashflow in any given month. In March there were thirteen. However, almost 90% of the outflow was accounted for by the five funds which each saw outflows of over â¬100 million.
Whilst the largest outflow was in DEKAâs ImmobilienFonds, the negative cashflow from DEKAâs ImmobilienEuropa for a second consecutive month highlights a different trend. Those funds with a strong European emphasis have tended to be more attractive to the German public. However, there are a number of other European funds have also seen outflows recently. These include WestInvest Interselect, HAUS-INVEST europa and the newly-formed EURO ImmoProfil.
With negative cashflows in four of the last five months, the downward trend is now firmly established. However, the boom in the European investment market has continued into the first quarter of 2005 and there have been other buyers replacing the reduced net investment from the open-ended funds.