Five months into the year the German Open-ended Fund sector has received a total €3.7 billion net cash inflows. However, the net May inflows of €128.6 million were well below the €984 million monthly average received over January-April 2008.

This cash-flow slowdown in May is almost exclusively due to a net -€780 million withdrawal from HAUS-INVEST europa. It is reported that CommerzReal was aware of the change in advance. Thus, this was a ‘managed’ event, involving relocation of funds from HAUS-INVEST europainto CommerzReal’s funds of funds.
Based on the market sentiment so far, it is set to be a one-off event as the majority of other funds continue to see strong net investments on both year-to-date and monthly basis.

Looking at the year-to-date results –all but two fund managers has received a net positive inflows in 2008 so far. One, as expected following the strong outflow in May, is CommerzReal with a negative -€441 million net. The other, also not surprisingly, is iii Investment –a fund manager, who has had negative net inflows for the past 12 consecutive months, with -€58 million.

Looking at the May results alone sentiment towards the sector stands strong. In fact, putting aside the negative outflow from HAUS-INVEST europa, 23 out of the remaining 37 funds saw a net positive inflows in May, averaging at €25 million. Thus, if not for the -€780 million outflow from that fund, the GOEF sector as a whole would have received over €908 million net. The funds have been exceptionally active in the investment market over the last few months. Some of the larger recent deals include: UniImmo: Deutschland buying Rhein-Galerie shopping centre in Ludwigshafen for around  €210 million, TMW ImmobilienWeltfonds purchase of London’s 85 Fleet street for over €100 million, and the acquisition of Tulipan House, Warsaw by HausInvest Global.

Download full CBRE article:

CBRE German Open-Ended Funds - May 2008 PDF

___