GERMANY - Aberdeen Asset Management Deutschland said it is working hard to ensure the DEGI open-ended Global Business fund for institutional investors can re-open in the future, despite reports suggesting it may need to be liquidated in March.

Dietmar Müller, spokesman for Aberdeen in Germany, said the firm's chief executive Hartmut Leser was misinterpreted in recent media reports suggesting Global Business fund might have to be liquidated if investors could not be convinced of its long-term viability.

Müller said the difficulties being experienced at DEGI Global Business were not specific to the fund but was rather "an industry problem", and cited a number of other open-ended vehicles frozen to redemption.

"In the peak, until summer 2009, around 40% of the assets under management of German open-ended property funds were closed," he said.

AXA Immoselect was the latest German open-ended fund to have been affected by redemption pressures, as it announced on Wednesday that it had extended the redemption freeze originally put in place in November 2009.

Other funds currently closed to redemptions include KanAm US grundinvest and Morgan Stanley P2 Value, both of which have been frozen since October 2008, and TMW Pramerica Weltfonds, which closed for the second time earlier this month.

Topics