Credit Suisse Asset Management said it is extending the suspension of withdrawals from its EUR 6.2 bn CS Euroreal open-ended investment fund 'to protect the interests of its long-term investors'. The suspension redemption will be initially prolonged 'for a further period of up to nine months', it added.

Credit Suisse Asset Management said it is extending the suspension of withdrawals from its EUR 6.2 bn CS Euroreal open-ended investment fund 'to protect the interests of its long-term investors'. The suspension redemption will be initially prolonged 'for a further period of up to nine months', it added.

CS Euroreal became the latest open-ended vehicle in May to impose a three-month redemption ban after proposed changes to the way German open-ended funds are regulated threw the market back into chaos, prompting a run on a number of funds, including SEB Immoinvest and Kanam Grundinvest. Euroreal had EUR 570 mln in liquidity available at the end of April - just before Germany proposed the changes - but had witnessed almost EUR 400 mln in redemptions in the same period.

'Although the law is currently under revision, the future statutory framework remains unclear. [..] Reopening requires, in particular, clarity about the framework for investing in open-ended real estate funds,' the company said in a statement, adding that there is also 'insufficient liquidity for a sustained reopening'.

It added: 'The extension of the redemption suspension allows fund management to continue the process of selling properties - a process it has already commenced - without being pressured by time and price'. As of last week, Euroreal's liquidity amounted to 13.6% of the fund's assets.

Last week, SEB Immoinvest and Kanam Grundinvest also said they are to remain closed for redemptions for another nine months due to market uncertainty about the government's planned investor protection laws. In total, 10 German open-ended funds are closed to investors, representing some EUR 25 bn worth of assets.