The launch of Germany's Investment Modernisation Act in January promised to create a host of opportunities for foreign fund managers. But as the year draws to a close most confess to being disappointed by the outcome. The hoped-for revolution has failed to materialise and many are looking forward to further reforms next year that they think will prove more decisive.

The new investment law may have failed to deliver a surge in business for foreign fund managers but it has made the German market more accommodating. It was an important step towards knocking down the administrative hurdles to foreign fund activity.