They do. But that’s mainly about what they do within the fund adhering to the strategy.
For example -: if DRPF strategy says that they are majorly residential in German speaking area then I am fine if they buy or sell properties within these boundaries.
However here we have another problem to deal with. Which is that they can just merge with another fund. This means that not only we need to deal with active fund management risk, but we also need to deal with risk of fund house organising their funds.
To be honest UBS merger might not be that bad. But I read that sometime back AXA merged Commercial fund with Residential fund. This is going beyond the fund strategy and just doing whatever they feel appropriate.
Now I know that fund houses are not crazy and they would normally do these things keeping interest of their investors in mind. But this was just a surprise for me that it’s so simple.
Yeah but that’s not specific to these funds. I have had ETFs close down at inopportune times, locking in losses that I didn’t intend to take. AND: it was all in the prospectus.
I think UBS did the right thing here. I mean, 4 fund management teams for 4 funds? Maybe even competing with each other on bidding for properties.
Especially the STA Residentia team, small fund, bad performance (plenty of non performing tenants) etc. Put those properties into the hands of a better team plus you get economies of scale everywhere.
And let’s keep in mind that SNB is heading towards 0. Immigration still strong. Record rent growth. CH resi looks good in the long run.
Kept following this quite closely.
Looks like natural long only buyers/holders bought some CSLP, DRPF- ignoring the arbitrage with STA which is still very cheap vs the others. There are sizeable sell orders on the book in DRPF at around 19.20. Liquidity is rather low now. Wait-and-see it seems. Year end might be a relevant date for some as it is interesting to hold those funds over the year end for (asset) tax reasons.
HOSP drifting higher. STA catching up a little bit today. CSLP also drifting higher. DRPF stuck now with large offers higher up.
The restructuring of the 4 funds will take some months, judging from how long it took for AXA fund mergers, it’d say 4-5 months.
True there is no reason to be NAV weighted. It could be market cap weighted as well. At the end of the day, none of that has a meaning for the premium that the new combined fund will trade at. The market will decide.
NAV weighted
32.6%
Mkt Cap weighted
32.7%
There was no announcement. But previous fund mergers specifically said NOT at market cap ratios but instead NAV ratios.
"gestützt auf die Nettoinventarwerte (und nicht Markt oder Börsenkurse) "
I want to invest in Direct Residential Real Estate Funds this year. It should be well diversified in Switzerland and across providers. Which 3-4 funds do you recommend?
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, tu confirmes avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/
Durch das Lesen und die Teilnahme an diesem Forum bestätigst du, dass du den auf http://www.mustachianpost.com/de/ dargestellten Haftungsausschluss gelesen hast und damit einverstanden bist.
