The growing importance of secondary market activities for open-end real estate fund shares in Germany

  • Shares of open-end real estate funds are typically traded directly between the investor and the fund management company. However, we provide empirical evidence for the growth of secondary market activities, i.e., the trading of shares on stock exchanges. We find high trading levels in situations where the fund management company suspends the issue or redemption of shares. Shares trade at a discount when the fund management company suspends the redemption, whereas shares trade at a premium when the fund management company suspends the issue. We also find evidence that secondary market trading activity is increasing since German regulation introduced a minimum holding period and a mandatory notice period for open-end real estate funds.

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Author:Philipp GerlachORCiDGND, Raimond MaurerORCiDGND
URN:urn:nbn:de:hebis:30:3-637328
DOI:https://doi.org/10.1007/s41464-019-00081-y
ISSN:2194-072X
Parent Title (English):Schmalenbach business review
Publisher:Springer International Publishing
Place of publication:Basel ; Cham
Document Type:Article
Language:English
Date of Publication (online):2020/01/22
Date of first Publication:2020/01/22
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2022/10/20
Tag:NAV-price-spread; Open-end real estate funds; Secondary market; Trading restrictions
Volume:72
Issue:1
Page Number:42
First Page:65
Last Page:106
Note:
This research was conducted with support from the German Investment and Asset Management Association (BVI).
Note:
Open Access funding provided by Projekt DEAL.
HeBIS-PPN:50247324X
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
JEL-Classification:G Financial Economics / G1 General Financial Markets / G11 Portfolio Choice; Investment Decisions
G Financial Economics / G2 Financial Institutions and Services / G28 Government Policy and Regulation
G Financial Economics / G2 Financial Institutions and Services / G29 Other
Sammlungen:Universit├Ątspublikationen
Licence (German):License LogoCreative Commons - Namensnennung 4.0