Property Funds

Property funds are open-end collective investment schemes, which invest their financial assets in property securities (so-called “property funds“).

The structure of the mutual property fund is presented as follows:

  • Fund agreement (collective investment agreement) between investors and fund management as well as the depository bank
  • Administration by fund management (= company limited by shares with the “exercise of the purpose of the fund“) as its main purpose
  • Subscription for shares in funds gives the investor a claim against the fund management
    • to invest in (separate) assets
    • to receive an income from the investment fund
  • No independent legal personality (separate assets)
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