The last three years have been particularly difficult for the German open end funds industry. Even more so than in the past, where investments in German open end funds (GOEF) were regarded as extremely prudent, this situation has changed dramatically since the beginning of the recent financial turmoil.
Investors withdrew a large proportion of their capital from retail funds, forcing some of these funds to close to prevent firesales in which the remaining investors would inevitably lose money. Meanwhile, some funds liquidated their assets completely and vanished from the market. Against this backdrop, the government decided to reform the investment legislation concerning GOEFs. One focal point of the new legislation (AnsFuG), which is due to take effect in January 2013, is the introduction of a 24-month lock-up period and a redemption notice period of 12 months. In addition, the debt ratio is to be capped at 30%. These rules apply to the traditional retail funds and retail funds for institutional investors but not to the Spezialfonds, as illustrated in figure one.
Source : INREV