Mixed German open-ended funds (GOEFs) are going through the 'painful process of disappearing' while vehicles exclusively for retail investors or those just for institutional investors 'definitely have a future', according to Barbara Knoflach, CEO of SEB Asset Management..
Mixed German open-ended funds (GOEFs) are going through the 'painful process of disappearing' while vehicles exclusively for retail investors or those just for institutional investors 'definitely have a future', according to Barbara Knoflach, CEO of SEB Asset Management..
SEB's mixed Immoinvest fund was an important target for fund-of-fund money before 2008. Now it has now gone through a painful repositioning, Knofflach said in an intervew with PropertyEU at EXPO REAL 'We used new retail money to pay back and redeem the institutional investors,' she said. 'SEB Immoportfolio Target Return fund which is for institutional investors and high net worth individuals is working perfectly'.
Knoblach said she did not agree that institutional investors will switch en masse from GOEFs to spezialfonds due to fundamental differences between the two products. Investors do not have to consolidate GOEF holdings on their books, while investors in spezialfonds do, she said. 'Many institutional players also like GOEFs for their transparency. In contrast the spezialfonds sector is not transparent. There are no statistics or benchmarking.'
Knoflach said that in general proposed GOEF legislation - not expected before March 2011 - is good for the industry as it solves the issue of short-term money investing with a minimum holding period. She expects a compromise will be found to enable insurers to invest in GOEFs even after a two-year holding period comes into force.