Investors in the Verius real estate financing fund do not know how much their fund shares are still worth.
(Photo: Unsplash)
Zurich By appointing their own representative, investors want to bring movement into the tangled situation at the Verius real estate financing fund. A creditors’ meeting was convened for June 13, according to an invitation published in the Federal Gazette.
The investment vehicle, in which professional investors such as pension funds and insurers had invested around 1.2 billion euros, has been frozen for around six months. This means that investors do not know how much their investment is still worth. They also cannot cancel fund shares and therefore do not get their money.
>> Read here: How pension funds and insurers were able to invest billions in real estate junk bonds.
Many professional investors have invested indirectly in the fund via so-called credit enhancement structures. These are fixed-income securities whose interest income is derived from fund distributions. Since the fund was frozen, there has also been a great deal of uncertainty as to what the bonds based on the Verius fund are worth.
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