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Know How: Secondary Market

shares in GmbH & Co. KG's in the form of closed-end funds (eg ship funds) are generally not fungible, that is, they are not redistributable, at any time, and most certainly not at the desired price. So far there are no regulated market that has fair pricing necessary for sales volume and the required information transparency. If an investor wants to sell his shares, he is usually the best advice when it is directly aimed at the respective initiators. This is often in the closed Group of limited partners a prospect, and fair pricing have so far contributed more underwriters.

But changing the environment for some time. Various issuers bring so-called secondary market fund on the market. With fresh money into new investment fund shares are bought by old installers. That they are frequently taken advantage lies in the nature of things, because the secondary market fund holds: the profit lies in the purchase.

parallel, there were several attempts to establish an exchange-like marketplace that generated due to high market acceptance and the required sales volume. The attempt seems hitherto erfolgversprechenste the Stock Exchange Germany to be an initiative of the Hamburg Stock Exchange. There, investors willing to sell their shares offered for sale, and bargain hunters try to purchase cheap profitable holdings.

Ulrich Oldehaver of the MPC commented on this topic recently over the publication Fund telegram as follows: "For investors, it actually looks like he can fund quickly buy and resell. But this is a fallacy. The customer gets a result of market changes less, it will be sold quickly and in panic. How can develop, the share price showed 2002/2003; ship funds. They were at 25 to 30 percent of their value. Currently they are at 160 percent. You must remember to be a buyer and professionals are on the sell side, the most private investors. In doubt, investors sell them all at the wrong time. This is as safe as gospel truth. "

I tend to agree fully. Making matters worse is also the fact that more and more initiators proceed to justify its own Internet-based secondary market, where only the company's products can be traded. This new branch will be finally not to be missed. This is of course the double-and triple meaning to the detriment of investors:

1) consultants and brokers, as the independent third party Investors might help to be excluded from the trading process.

2) Instead, deserves the operator of the platform, namely the initiator, a second time in his fund when he collected a commission.

3) Total market places such as the Stock Exchange volume is withdrawn from Germany, so that they can not even really get to his feet.

reason is still valid: Investments in closed end funds should only be entered into a long-term commitments that should be considered as generally not fungible. in need (extreme change in their own economic situation, unemployment, divorce, bankruptcy) have can be found in the past always individual and sustainable solutions.