DTZ Insight. GOEFs Q3 2010

• German open-ended property funds have lost €2.648bn of their asset values since the end of April 2010. The net outflow of money from May to and including September was €943m.

• In the few weeks between the end of September and the end of October, three German open-ended property fund managers announced their decision to start the liquidation of one of their funds. The funds are KanAm US-Grundinvest, Degi Europa and Morgan Stanley P2 Value. Their assets (€2.56bn at the end of September) reflect around 3% of the total asset value of all 55 open-ended property funds (around €88bn).

• Another nine funds are currently closed (see Figure 1). They are worth around €22.5bn. This reflects 25% of the assets of all German open-ended property funds. The reopening of these funds is not expected to be up for discussion until early summer2011.

• The German cabinet passed the government draft bill for an “Act to Increase Investor Protection and Improve the Functioning of the Capital Market” on 22 September 2010. The market players largely welcomed the main points of the new fund rules. The legislative process began in November 2010
and will be finished in the first quarter of 2011.

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source : DTZ