GOEFs lower risk profile through broad geographic spread: BVI

The broad geographic spread of investments by German open-ended property funds (GOEFs) has clearly reduced the funds' risk profile, according to new figures from investment fund body BVI.

Of the funds' total investments, some 29.5% are located in Germany, compared with 58.4% in the rest of Europe and 11.6% in the rest of the world, BVI said. No investments are held in Middle Eastern countries.

The fund body said that a higher proportion of 'young' properties (no older than five years) was also having a positive effect on GOEFs' value appreciation, since maintenance costs for younger assets are correspondingly lower. Currently, around 34.3% of the properties are no older than five years, while 29.5% were built or drastically renovated up to 10 years ago.