Last week, the value of the real estate fund “Uniimmo: Wohnen ZBI” plummeted by almost 17 percent. Just an isolated case or is there more to come? We explain why it plummeted and what investors in open-ended funds need to prepare for
There has been no such thing in an open-ended real estate fund since the financial crisis of 2008: the value of the real estate fund “Uniimmo: Wohnen ZBI” from fund provider Union Investment plummeted by almost 17 percent last Tuesday. For investors, this means that instead of 50.74 euros, they will only get 42.26 euros back for a share – that is how low the daily redemption price of the shares is. The trigger was a revaluation of the fund’s entire real estate portfolio: independent experts estimate the value to be around 860 million euros lower than before. Until the correction, the fund volume was just under 5 billion euros, but now it is below the 4 billion euro mark.
Source: Stern
