Mipim DISPATCH: German Fund Crisis Is Over, Not Forgotten

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CANNES-The German open-ended fund market is alive and well, thank you. Despite the year-end freeze on three funds, the market is moving forward, according to Dr. Karl-Joseph Hermanns-Engel, managing director of AXA Real Estate IM in Frankfurt. One prime example of that is AXA’s own plans to launch a new major fund in coming weeks.

He noted that there were actually two results of the crisis–the first time in the sector’s 35-year history that funds were frozen. The first was one of “irrational behavior,” he says, as investors pulled their claws in and some 7.2 billion euros in capital were lost to the sector. From AXA’s own 1.6-billion-euro total, some 300 million euros of capital went south, he added.