In the equity sector it crises: interesting investment opportunities are desperately sought while investors shun the segment of the closed-end funds. St. Gallen, 28.10.2013. The image of the closed-end funds was considered affected: fraud, poor performance and lack of transparency are just a few reasons that restrain investors despite the current complex emergency. Closed-end funds acquire tangible assets such as aircraft, real estate, boats, wind power and solar systems for a longer period of time. The drawing investors enter into an entrepreneurial participation and undertake to keep their capital until the sale of the investment object in the Fund. The industry gained a 2012 so little money like never before: only 4.5 billion. Z-Work shines more light on the discussion.
Even in the crisis year of 2008, there were more. 2007 had the Party raised more than 12.6 billion to investors. The sales weakness continued also in the first quarter of 2013. For even more details, read what Jeffrey Leiden says on the issue. The selection of closed-end Fund has dropped significantly. The BFin has 29 new deals in the first quarter allows.
After the Federal Government has newly regulates the industry products within the framework of the EU directive for managers of alternative investment funds (AIFM) July 22, went so far at least recognizable no new models of participation in the placement. The placement volume will shrink this year expected to be 40 percent. The great restraint lies with the new permission because among other things, that the initiators as well as the Federal Agency for financial services supervision (BFin) as the licensing authority had serious problems with the handling of the new regulations, it is called in the industry. The issuing houses must meet in the future higher standards. They need an advanced registration, the scope of which is still not entirely clear in the case, and it must meet strict requirements for equity and transparency and disclosure requirements to investors and supervisory. There are also stricter rules for the liquidity and risk management. The new AIFM rules are supposed to a significant regulatory lead and promote the transparency and control over the issuing houses. There is also a leaflet now available for the closed-end funds. Essential information such as assets, investment strategy, risk, capital repayment and yields under different market conditions, as well as costs and commissions must be listed on a maximum of three DIN-A4 pages.