25/10/2010
BVI sheds crocodile tears over liquidation of DEGI Europa
p { margin-bottom: 0.08in; } The German BVI association of asset management firms on Friday expressed regrets that it was not possible to save the open-ended real estate fund DEGI Europa, for which redemptions had been frozen since the end of October 2008 (see elseqhere).But the association welcomes the announcement that Aberdeen Management Deutschland has chosen to liquidate the portfolio over a longer , «sensible», period of three years. In addition, it recognizes that a reopening of the redemption window for a short period would not have been desirable if professional investors were going to flood the fund with redemption demands.The BVI also notes that open-ended real estate funds have already attracted EUR2.6bn in net subscriptions in the first eight months of the year, following EUR3.2bn in 2009, and EUR0.6bn in 2008.As of 30 September, 21 of the 28 open-ended real estate funds on sale in Germany posted positive performance, of an average of 2.2% since the beginning of the year. Over 20 years, the average annual performance of products in this category comes to 4.8%.
