Possible security features of closed-end Fund, the security aspect enjoys special importance when selecting an investment. This applies all the more in economically uncertain and turbulent times. Also closed-end funds have to materialize on the changing customer preference, because investors preferred successively more safety-oriented concepts of participation in recent years. A significant role in the selection of a closed-end Fund should be therefore review the offered security features. Depending on the concept of participation and investment object these can vary. Especially is, for example, real estate funds in addition to the location to make sure the tenant and the structuring of the lease.
The investment objects in the long term hired by government institutions or private companies with the best credit, and leases also linked to inflation so this closed investments criteria already significant security. It is the credit rating of the lessee, as well as the length of the lease at To give particular attention to aircraft funds. Similarly, in ship funds. The solvent of the charterer and the long-term Charter contract, the safer is such participation especially in a weaker market environment. Investors on long-term State-controlled feed-in tariffs should be solar or wind power Fund. In addition private equity funds, which can be with security features like for example with a capital guarantee can be found.
Here, the participation concept over a bank guarantee is structured so that the investor will receive back at least its deposit (excluding premiums), even if the holdings should generate losses. Also worth checking any other features which provide additional collateral. So, different initiators offer placement, release -, fixed price, or maximum cost guarantees. These features can be quite reasonable, to various business risks by the investor on the Guarantee to transfer. This additional safety is always welcome. However, investors should not carelessly accessing. Because a warranty is worth only as much as your guarantor. Interested investors should check always the credit rating of the guarantor. Whereby liability is already limited, according to the legal form of the guarantee is worth little. Only if guarantee unlimited and in the long term to fulfil their obligations, the fee to be paid, where appropriate, for the warranty is worth. And even here caution is in order, because the additional cost of a guarantee should be always in a reasonable relation to the risk.