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)