How do Germans invest? QPLIX has has investigated this question again together with Institut für Vermögensaufbau (IVA) based on an anlaysis of more than 62.000 real portfolios. The results are summarised in the study "Trendmonitor Vermögensverwaltung (TMVV) 2024". The core finding: Germany loses trust of its own investors, as wealth flees abroad.
- Analysis of more than 62,000 German portfolios by IVA and QPLIX: German capital is increasingly being invested abroad, US share at record level (44.3%), Germany below 30% for the first time
- Time series comparison: US tech giants “Magnificent Seven” have more than tripled their share in German portfolios since 2018
- German favorite stocks: Danish pharmaceutical giant Novo Nordisk becomes the new favorite stock in German portfolios
- ESG investments are rising continuously, but remain marginal overall
“Never before has so little German capital been invested in Germany,” says Andreas Ritter, member of the IVA Board of Directors and co-author of the study. “North America's dominance, on the other hand, is reflected in a new record of 44.3% in the average German investment portfolio, while the eurozone is just below the 30% threshold in 2023.”
Tech first: German assets fuel the “Magnificent Seven”
The extensive portfolio data also shows a remarkable shift in the individual equity asset classes: The share of the so-called “Magnificent Seven” tech companies in the invested individual stocks has more than tripled in the last six years. “The performance of these exceptional global tech giants has increased their share of German equity portfolios from 4.1% to 12.5%,” says Sebastian Deck, Marketing Director at QPLIX and co-author of the study. “However, by the end of 2023, we see the first signs of a bubble forming in this segment, which has also recently shown the first signs of losing momentum.”
There are two exceptions to the overall trend: German equities continue to play an important role in the top 20 stocks due to their reliable and high dividends. And: The new favorite German single stock is European: The Danish pharmaceutical company Novo Nordisk has even overtaken the tech titans in 2023 and is the new favorite single stock of German asset managers. “Novo Nordisk's globally hyped weight loss drugs, Ozempic and Wegovy, have fueled professional investors' hunger for profitability - and catapulted the company to the top of the list of German stock favourites in 2023,” analyzes Deck.
While ESG has been a hot topic in the media in recent years, the data from the TMVV analysis tells a different story. “Companies with medium ESG ratings and the light green Article 8 funds in particular have gained weight in fund investments,” says Ritter. “This indicates a trend that favors a moderate consideration of ESG criteria (for example through ESG screening, best in class or exclusion criteria) over a very consistent implementation of the ESG approach.”
“Portfolios react like a seismograph not only to long-term economic trends, but also to the immediate effects of short-term trends and crises,” explains Deck. The message is clear on one point: “German asset managers are voting with their investment behavior and the reputation of their own country as an investment destination has reached an all-time low,” analyzes Deck. In 2023, investments in German companies will account for less than a third of German portfolios for the first time (28.6%), far behind the USA (36%), but also behind the rest of Europe excluding Germany (31%).
Another formerly booming region has also lost popularity: with the collapse of supply chains during the coronavirus pandemic, the aggressive stance towards Taiwan and the trade dispute in the automotive industry, the weighting of China within the assets invested in individual equities was continuously reduced after 2020. Ritter: “On the subject of China de-risking, we can say on the basis of the portfolio data that it has already begun in German portfolios.”
The complete asset allocation study Trend Monitor 2024 contains extensive further analyses on the current composition of German portfolios as well as the development of topics such as equities, bonds, currencies, investment regions, company sizes, credit ratings, ESG and EU taxonomy, cryptocurrencies and many more.
About “Trendmonitor Vermögensverwaltung”
The “Trendmonitor Vermögensverwaltung” (Trend Monitor Asset Management) is the largest data-supported analysis of the investment behavior of professional asset managers in German-speaking countries. The study, a cooperation between the Institut für Vermögensaufbau (IVA) and wealth tech software provider QPLIX, has been in existence since 2018 and is currently based on an analysis of more than 62,000 real client portfolios. More than 100 independent asset managers and their clients have agreed to the anonymized and aggregated analysis of their portfolio holdings. In concrete terms, this currently means a database of more than 25,000 securities (including real estate funds, REITs, etc.) and more than 8,000 funds and ETFs.
The portfolio holdings are evaluated for the study four times a year, at the beginning of each calendar quarter. The portfolio holdings are provided by the custodian banks V-BANK, DAB BNP Paribas, Deutsche Bank, Baaderbank and Donner & Reuschel and are consolidated and processed in part with the help of the wealth management software platform from QPLIX, the leading specialist for digital asset management. The overall evaluation, on which the interpretation of the analysis is based, is made up of the criteria groups “portfolio structure”, “product implementation”, “risk management”, “cost efficiency” and “performance”.
About QPLIX GmbH
QPLIX develops and operates a leading software platform for the digital management of complex assets. Its clients include single and multi-family offices as well as foundations, investment funds, asset managers, institutional investors and private banks from the entire EMEA region. The QPLIX platform maps the entire range of liquid and illiquid asset classes as well as complex client structures and consolidates the data of all assets in one database (“single source of truth”). The software enables portfolio managers and asset owners to perform real-time analyses at any time, either via the individual client portal or the app. In addition to the platform, QPLIX also takes care of the IT infrastructure and security. With Q-Data, QPLIX also offers comprehensive financial data supply and verification services. Assets of more than 300 billion euros are currently managed on the platform. QPLIX GmbH was founded in 2012 by Kai Linde, Philipp Pötzl and Mathias Lindermeir. The team currently consists of more than 120 software and financial experts in Munich and Frankfurt. As a supporting member of VuV, QPLIX is firmly anchored in the German asset management industry.
Press contact:
Sebastian Deck
Marketing Director QPLIX GmbH
E-mail: sebastian.deck@qplix.com
Web: www.qplix.com
About Institut für Vermögensaufbau AG
Institut für Vermögensaufbau (IVA) AG is an independent company that promotes wealth accumulation for private investors. It is committed to transparency and the improvement of financial services. IVA offers research and advisory services, studies and the certification of high-quality portfolios, products and advisory processes for financial service providers and professional investors. The IVA team combines recognized scientific methods with a high degree of practical orientation and a network of leading partners and proven specialists in the financial sector in order to achieve relevant results of the highest quality. Since 2005, the institute has been certifying portfolios from a risk/return perspective and, since 2019, also from a sustainability perspective. The IVA conducts numerous studies, particularly in the areas of private banking, asset management and retirement provision, many of them in collaboration with renowned media partners such as business magazines, TV stations and newspapers. The Institute thus makes quality visible and understandable for private investors.
Institut für Vermögensaufbau AG
Landsberger Street 98
80339 Munich
Phone: +49 89 46 13 91 70
E-mail: mail@institut-va.de
Web: https://www.institut-va.de
