09/01/25 11:23:50

Funds: New entry and Profit-taking

Cashing in - with pleasure. However, many are only now getting in, especially in international equity funds. Tech funds are also continuing to do well. Those who prefer a more relaxed approach are opting for money market funds. Always a hot topic: real estate funds.



9 January, 2025 FRANKFURT (Frankfurt Stock Exchange). Thanks to the extremely good performance of equities, fund traders also have a lot to do. Andreas Kehnen, for example, who trades funds for Baader Bank, reports a very high trading volume - especially at the end of December. “After the very good stock market performance, many people probably wanted to cash in,” he suspects. Ivo Orlemann from ICF Bank also reports good turnover: “We saw a lot of buying, but also profit-taking.”  

Real estate funds: not only taxes

Open-ended real estate funds remain a focus at ICF. Due to the crisis on the real estate market, the stock market prices of many funds have been below the official prices of the issuers for some time, in some cases significantly. However, issuers are also making adjustments: Most recently, Kanam Grund's Leading Cities Invest (DE0006791825) reduced the value of its fund units for the third time in a short space of time. At the end of June 2024, Union Investment's Uni Immo Wohnen ZBI was devalued by almost 17% in one fell swoop.

The consumer portal finanztip.de has repeatedly recommended selling the fund via the stock exchange. “We are seeing brisk trading on both sides,” reports Orlemann, however. The UniImmo Deutschland (DE0009805507) is more likely to be sold. On the other hand, Grundbesitz Europa (DE0009807008), Grundbesitz Global (DE0009807057), UniImmo Europa (DE0009805515) and WestInvest InterSelect (DE0009801423) are being bought.

“Buying and selling international equities”

According to Kehnen, profit-taking dominates trading in European equity funds, such as DWS Aktien Strategie Deutschland (DE0009769869), Fondak (DE0008471012) and CT European Smaller Companies (LU1864952335). “The picture is more mixed for funds investing internationally, with buying and selling,” adds the trader. Clearly on the shopping list: terrAssisi Aktien, which invests according to the ethical principles of the Franciscan order (DE0009847343). At ICF, there is a lot going on in DWS European Opportunities (DE0008474156), which focuses on European small and mid-caps. Orlemann also has a lot to do in trading with sustainability funds such as Swisscanto Green (LU0136171559) and ÖkoWorld ÖkoVision Classic (LU0061928585).

Funds with Asian equities are not doing particularly well at the moment, as Andreas Kehnen notes: “Turnover is mediocre and we are seeing almost only sales.” Apparently, China is not trusted much at the moment. The DWS Top Asia (DE0009769760) and the JPMorgan Pacific Equity (LU0052474979), for example, are being removed from the portfolios. 

Above all equity and real estate funds. Equity funds once again dominated fund trading on the Frankfurt Stock Exchange in December with turnover of 28.7 million euros. Open-ended real estate funds were in second place with 12.6 million euros. Significantly less was traded in mixed funds (7.7 million euros), money market and money market-related funds (2.5 million euros) and bond funds (1.9 million euros). 

Strong price gains for tech funds 

The tech sector remains the most popular, as Orlemann explains. Fidelity Global Technology (LU0099574567), for example, has seen a price increase of 26% over one year and 62% over two years. Also always on the agenda: Deka-Technologie (DE0005152623), BlackRock Global World Technology (LU0171310443) and more specialized funds such as DWS Artificial Intelligence (DE0008474149). 

Mixed funds: extremely high inflows

Orlemann also reports good turnover for mixed funds, such as Flossbach von Storch Multiple Opportunities I and II (LU0323578657, LU0952573482). A perennial favorite at Baader Bank: ARERO Der Weltfonds (LU0360863863), which focuses on equities, bonds and commodities. Classic bond funds such as the Flossbach von Storch Bond Opportunities (LU0399027613) are also in high demand at ICF.

The money market fund business is really busy. “As was the case throughout the year, turnover was extremely high in December, and it was exclusively purchases,” explains Kehnen. The favorites include the DWS ESG Euro Money Market (LU0225880524), the DWS Flexizins Plus (DE0008474230) and the CB Geldmarkt Deutschland (LU0052221412). In contrast, he observed only “very thin” turnover in gold mining and mining funds. “ETCs such as Xetra Gold are obviously the more interesting alternative for many.”

By Anna-Maria Borse, 9 January, 2025 © Deutsche Börse AG

Anna-Maria Borse is a financial and business editor specializing in the financial market/stock exchange and economic topics.

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