Aberdeen Immobilien (formerly Degi) has suspended both the redemption and issuance of fund shares for its Degi International fund with immediate effect, the fund manager said on Tuesday. Issuance of Degi Europa fund shares has also been suspended. Degi said the measure had been taken to safeguard ongoing business operations and protect the interest of remaining investors after the funds saw substantial capital outflows in the third quarter.
Aberdeen Immobilien (formerly Degi) has suspended both the redemption and issuance of fund shares for its Degi International fund with immediate effect, the fund manager said on Tuesday. Issuance of Degi Europa fund shares has also been suspended. Degi said the measure had been taken to safeguard ongoing business operations and protect the interest of remaining investors after the funds saw substantial capital outflows in the third quarter.
The suspension will initially be limited to three months.
After the three-month ban on withdrawals at Degi International was lifted in January, the situation stabilised with outflows dropping to around EUR 18 mln in May from a high of EUR 260 mln immediately after the fund reopened. However, between June and September, the fund suffered a net capital drain of EUR 250 mln after the public debate on possible loss exposures for open-ended property funds flared up again.
