Germany’s asset managers collected a record €76.7bn in Spezialfonds last year, according to the BVI, the country’s industry association.
The new figures bring the total volume managed in Spezialfonds to just over €1trn as per year-end 2013, again a new record compared with €982bn the year before.
The industry now manages nearly €320m for institutional investors in mandates, a slight decrease on the €325m managed in 2012, the BVI said.
Holger Naumann, president at the association, added: “The business with institutional investors in particular continued its upward trend.”
He said insurance companies, which invested €35.7bn, were the strongest drivers of new Spezialfonds business.
Pension funds contributed another €13.7bn, while companies and industrial foundations invested €11.9bn.
Insurers were the largest group of investors overall, at €417bn, followed by pension funds at €199bn.
The BVI said there were “several factors” that would prolong institutions’ need for investment funds, including increasing regulation, as well as higher standards in risk management and reporting.
Further, the association sees a continuing trend in the shift towards indirect investments, especially in real estate – an asset class in high demand in the low interest rate environment.
Real estate Spezialfonds have grown by one-third since 2010 to €40bn.
For public equity funds, the BVI noted an outflow of €6.6bn, but it said this was due to “a special effect”, as some institutional investors pulled out €5.6bn.