Fund sector rest in pieces
Fund sector rest in pieces
- 2006
- EuroProperty March 2006, 16-17(2) .
At this point in time, the future of German open-ended funds looks unsettled. This crisis is not new. In the autumn 2004 the industry was shaken by poor performance and a bribery investigation. At this time, four funds launched a transparency initiative, but it lacked any significant action. This time, the German fund association, BVI has responded with a big package of reforms, promising greater disclosure on values and rents. However, some proposals have caused a stir in the property industry. For instance, new investors wanting to invest more than 1m Euros will have to agree to a 12-month notice period, which defeats the object of open-ended funds. Further details of the BVI reform proposals can be found in this article.
GERMANY
At this point in time, the future of German open-ended funds looks unsettled. This crisis is not new. In the autumn 2004 the industry was shaken by poor performance and a bribery investigation. At this time, four funds launched a transparency initiative, but it lacked any significant action. This time, the German fund association, BVI has responded with a big package of reforms, promising greater disclosure on values and rents. However, some proposals have caused a stir in the property industry. For instance, new investors wanting to invest more than 1m Euros will have to agree to a 12-month notice period, which defeats the object of open-ended funds. Further details of the BVI reform proposals can be found in this article.
GERMANY