German open-ended funds SEB Immoinvest und Kanam Grundinvest are to remain closed for redemptions for another nine months due to market uncertainty about the government's planned investor protection laws.

German open-ended funds SEB Immoinvest und Kanam Grundinvest are to remain closed for redemptions for another nine months due to market uncertainty about the government's planned investor protection laws.

SEB Asset Management said it hoped a government decision on the laws, expected by end-August, will restore clarity and stabililty to the open-ended fund sector. It said it would reopen its EUR 6.25 bn flagship Immoinvest fund as soon as sufficient liquidity ratios had been achieved.

For its part, Kanam said in a statement that it wanted to use the extended closure of Grundinvest to adjust its portfolio and the fund to the changing legislative and economic environment.

The continued freeze of the two funds brings the number of German open-ended funds which are still closed to investors to 10. In total, these funds, which include funds managed by Aberdeen, AXA, Credit Suisse, Morgan Stanley and Pramerica, represent some EUR 25 bn worth of assets.