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Why investors have access to balanced funds


Fondsmanager Edouard Carmignac: Der Portfolioverwalter beweist bei seinen Mischfonds ein gutes Händchen.

Fund manager Edouard Carmignac: The portfolio manager proves a good balanced fund in his hands.

DÜSSELDORF. Only in the first quarter of 2010, according to data from the Association of Fund BVI more than € 5.4 billion invested in this type of fund – more than in any other segment, comprising the BVI’s statistic. The money to invest now totaling nearly 1500 mutual funds depending on market conditions variable in shares and / or bonds.

During the segment grew the balanced funds, this has reduced assets under management in equity funds since late 2000, although the number of such funds has more than tripled since then.

"Investors want in bad times to see how their funds hold dogmatically unchanged stocks just because they are equity funds and therefore supposedly not time to hold cash or bonds," says Ralf Nomrosky, publicly appointed and sworn expert for investments from Düsseldorf.

Nomrosky shares the criticism of unilateral investment strategies: "The law may well sell equity shares, if managers do not expect price gains and dividends are not enough for attractive returns. After the historic principle of investment managers to sell even at critical stages in order to avoid risks and losses for their clients, the fund investors. "

In today’s practice, mutual fund managers rely less on true historical novel and more on investigations. After searching for single winner stocks is at best temporary success. Sustainable better results than the relevant (shares) indices are, these are the most recent experience, can not be achieved in this way. Accordingly, many funds are now only the composition of indexes to their depots.

The fact that investors do not Goutieres this is mirrored in declining assets of stock and bond funds as well as the increasing number of dissolved funds. Well over half of some long-standing equity funds registered in Germany has not the power of its investors since 2000, increasingly, often even less steadily year after year.

Success, analyze it, for example, the studies of U.S. economists Gary Brinson and some colleagues, is the result of skilful reallocation of funds between different asset classes, ie equities, bonds and additionally also between real estate, currencies and commodities. "That’s the classic mixing principle is," says expert Nomrosky. "The best all asset classes and all investment countries. Then it is important to find fund managers who understand the financial world are systematically and in a position to make decisions that turn out mostly to be correct. "

As convincing as the investment principle basically sound, so sometimes the results are inconclusive, the BVI lists for balanced funds. Only the "Degussa Bank Universal mixing pension fund" made it over the past ten years, an annual increase of more than five percent to account for – exactly 5.1 percent. A handful of mutual funds gets at least four percent per year out to their customers.

Overall, however, only about half of the balanced funds managed by the BVI registered since early 2000, a positive performance. Outside the BVI system is the global mixing Carmignac Patrimoine Fund through sustained good growth: Eight percent annual increase since 2000. Or the FMM-Fonds. He is regarded as equity increases, the negative stock market in phases but also specifically bonds to the depot: 4.8 percent annual increase for this fund are for the years 2000 to book. Such results are read by no means spectacular. As the capital market interest rates but now record for years under the five-percent mark, and German stocks in five of the last ten years minus made to qualify the results of the balanced funds.

That successful, sometimes quite small independent fund managers outside of the large financial groups are cared for, skeptics are right. "The parent company which owns the fund company interested in having a daughter well with the fund business deserves," said lawyer Joachim Schweiger: "At the same time, this bank is often also custodian of the Fund and to the extent required by law to make sure that the fund investors by the fund company are not disadvantaged. "

For attorney Schweiger is clear why the results of independent administrators are the front: "You must not serve two masters at the same time, can the cost of funds with respect and operate the plants may more freely."