13. August 2012 
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Surviving German open-ended real estate funds show stable returns
In July German open-ended real estate funds returned 0.1%, representing an improvement over June’s -0.1%. Funds primarily invested in Germany returned 0.2% over the last month and 0,6% over the last 3 months, considerably higher than the sub indices for European and Global funds. Funds focussed on Europe achieved a return of 0.1% in July and -0.2% over 3 months, while globally invested funds also returned 0.1% in the current month and 0.3% between May to July. These are findings of the latest monthly report, for July 2012, by IPD Investment Property Databank GmbH.
Before the wave of fund closings in October 2008, the 8 funds now in liquidation had a volume of more than € 30.4 billion, and a 38% share of the OFIX. Today their volume is € 21.3 billion, which represents 28% of the total index. “Today’s market size is still substantially smaller than before the fund closings, but the funds that are still active on the market continue to grow,” says Sebastian Gläsner, Head of Fund Services at IPD Germany.
Since October 2008 the total volume of the OFIX has fallen from € 79.9 billion to € 75.2 billion, a drop of € 4.7 billion. Those funds currently in liquidation have lost € 9.1 billion in volume terms since October 2008, while the funds that are still active saw inflows of € 4.4 billion over the same period.
More recently inflows and outflows have been closely balanced, with the OFIX only dropping marginally in volume, from € 75.5 billion to € 75.3 billion, over the last 12 months. Those funds in liquidation lost € -1.9 billion in volume due to distributions paid to investors and losses incurred on the sale of properties. Positive investment flows into active funds almost completely offset this effect on the aggregate index volume.
Before the wave of fund closings in October 2008, the 8 funds now in liquidation had a volume of more than € 30.4 billion, and a 38% share of the OFIX. Today their volume is € 21.3 billion, which represents 28% of the total index. “Today’s market size is still substantially smaller than before the fund closings, but the funds that are still active on the market continue to grow,” says Sebastian Gläsner, Head of Fund Services at IPD Germany.
Since October 2008 the total volume of the OFIX has fallen from € 79.9 billion to € 75.2 billion, a drop of € 4.7 billion. Those funds currently in liquidation have lost € 9.1 billion in volume terms since October 2008, while the funds that are still active saw inflows of € 4.4 billion over the same period.
More recently inflows and outflows have been closely balanced, with the OFIX only dropping marginally in volume, from € 75.5 billion to € 75.3 billion, over the last 12 months. Those funds in liquidation lost € -1.9 billion in volume due to distributions paid to investors and losses incurred on the sale of properties. Positive investment flows into active funds almost completely offset this effect on the aggregate index volume.
