Spezialfonds offer certain tax and administration advantages. They are the preferred vehicles for external mandates of pension plans and insurance companies. The Spezialfonds market is expected to see continued strong growth, as the number of external mandates continue to grow. There is some discussion by the new German government to abolish the tax free capital gain regulation on fund investments which, if implemented, would greatly impact the Spezialfund market, with funds moving into more fiscally favorable investment vehicles. The Auslandinvestment-Gesetz regulates the distribution of foreign funds in Germany.
Significant portion is from the insurance and pension sectors.
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