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German Open Ended Real Estate Fund Performance – The Impact of Liquidity


  • Michael Stein

    (University of Duisburg-Essen, Faculty for Economics and Business Administration, Department of Financial Market Econometrics, Universitätsstr. 12, 45117 Essen)


The liquidity crisis in the German Open-Ended Real Estate Funds (GOEREFs) industry was characterized by large outflows of money in several funds. Large and ongoing redemptions of fund shares held by both institutional and private / retail investors led to suspensions of redemptions, termination of funds and, ultimately, a new law. This study provides the most comprehensive overview of how the funds performed and how pronounced the differences between classes of funds in the €80bn+ industry are. Using not only the net asset values of the funds as reported by the fund management companies, but the prices obtained at the secondary market when redemptions are suspended, indexes are constructed in order to provide a clear view of the performance of GOEREFs when the most relevant prices are used – those that may be achieved directly, rather than using book values. In this sense, the indexes provide a liquidity-corrected picture of fund returns.

Suggested Citation

  • Michael Stein, 2013. "German Open Ended Real Estate Fund Performance – The Impact of Liquidity," Credit and Capital Markets, Credit and Capital Markets, vol. 46(1), pages 119-151.
  • Handle: RePEc:kuk:journl:v:46:y:2013:i:1:p:119-151

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    Cited by:

    1. repec:zbw:rwirep:0454 is not listed on IDEAS
    2. Michael Stein, 2013. "German Real Estate Funds – Changes in Return Distributions and Portfolio Favourability," Ruhr Economic Papers 0454, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Sebastian Schnejdar & Michael Heinrich & René-Ojas Woltering & Steffen Sebastian, 2017. "The Discount to NAV of distressed German open-ended real estate funds," ERES eres2017_160, European Real Estate Society (ERES).

    More about this item


    German Real Estate Funds; Performance; Liquidity Crisis; Secondary Market;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates


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