Property funds hold their own even in difficult times. Especially if they are as solid as the IVG EuroSelect funds.
2009 was a difficult year marked by the financial and property crisis. Even assuming that real estate markets will recover as overall economic conditions stabilize, the crisis which has persisted since the end of 2008 is not yet over. These two crisis-ridden years have made many investors wary, leaving them with a wait-and-see stance. Perception of risk has increased and at the same time more attention is being paid to quality of properties.
While in 2009, the whole investment market collapsed by some 50%, the percentage of the decline in property funds, at 27%, was far less marked. With equity capital of 175 million euros placed in 2009 and a steady market share of around 7%, IVG Private Funds GmbH remains one of the leading providers of closed-end real property funds.
Although there have been stark changes in international real estate markets and foreign exchange rates, in particular between GBP and EUR, and there has been little improvement in 2009, EuroSelect Fonds funds have profited from the by and large long-term tenancies.
We explicitly emphasize that at all times - and even more in extremely difficult times – we focus on responsible handling of the capital entrusted to us. This standard we have set for ourselves has been confirmed by the management rating conducted in August 2010 by the Scope rating agency. With an improved rating result of “AA” both IVG Private Funds GmbH and IVG Private Funds Management GmbH were attested excellent management quality with a rating of “very high quality.” We are fully aware of our special responsibility in this respect to investors in our funds and therefore welcome the regulatory plans for the fund market by the EU and the German government.
In February 2010, IVG Private Funds GmbH received the distinction “Best Initiator – International Properties” from the European rating agency Feri Rating Services AG, a prize which was awarded for the first time.
