Sells AJIO counterfeit products

Warnings from the past millennium

Closed funds are still full of horror in the summer slump

I'm really the last person to scream fake news and the lying press. But just like in the market for property investments and actually always and everywhere in life, there is also light and shadow in journalism. And apparently the term “closed funds” still leads to Pavlovian reflexes in many editorial offices. Drool, drool. In the economically difficult times, many media are currently drumming against closed funds again. In the past millennium, the warnings may have been justified - but they persist.

For example in a provincial newspaper from the Swabian region. There I read that closed-end funds are becoming increasingly popular. And why the consumer advice center warns against it. The consumer advice center. Maybe should update your information as well. "Closed funds are enjoying increasing popularity," I read there. "As of the end of 2019, the Germans were investing the record value of 26.8 billion euros in this type of investment - and that with a strong upward trend." It is based on the figures from the Deutsche Bundesbank, and they relate primarily to the market for special funds for large institutional investors. Insurers, pension funds, professionals.

Horror on the Swabian Alp

But that wouldn't be a horror story for readers in the Swabian Alb. Because now it starts. "Office buildings, container ships, shopping centers - a branch bank can certainly be a sales partner which will then try to sell its private customers shares in such a closed-end fund." Usually an "agio", that is, a surcharge of five percent on the investment amount.

The author then raved about investment advisors who “argue with tax advantages”. And then the long running time. Although there is a secondary market for closed funds for early sale on the Hamburg Stock Exchange, only “the current value of the participation is replaced”. Especially in the initial phase, they mainly produce losses. When did the author research the story?

When were the last GbR funds available?

On the news platform t-mobile I read horror stories about closed real estate funds as a limited partnership, but also as a general partnership or a civil law company. In this case, investors are not only liable with their participation in the event of bankruptcy - but also with their private assets, warns the author. GbR funds? When was the last time we had something like this for private investors? Definitely not for 15 years. Since there are no more loss allocations. AIF! Alternative investment funds. Ever heard BaFin-regulated with depositary and capital management company. But where is the scandal?

Why don't I write about fashion or European royalty? Or about Helene Fischer? Exactly because I have no idea about it. Although what fake news is being spread there. I could do that too ...