Due to increased tax evasion enforcement growth of these funds is expected to be low. The investment management companies sell certificates to individual investors which certify their ownership of a proportion of a specific fund. Growth of the retail segment has been sluggish in 1998. There are no specific events that are expected to dramatically spur growth, even with the implementation of the Altersvorsorge- Sonderverm gen. The first AS plans were approved and set up in October 1998.
Fund managers are likely to offer AS funds with aggressive or defensive allocation strategies.
AS funds are mutual funds with optional saving features. Investors make an initial deposit, with additional contributions usually taking the form of automatic debits from their bank accounts. Funds are intended to be held for 18 years or until the age of 60. With increased competition, the fees are likely to come down. The forty-four member investment companies of the BVI plan to establish a total of 76 funds.