The Deutsche Mittelstandsanleihen Fonds has been in liquidation since June 14, 2023. Private and institutional investors in the fund must expect financial losses.
The news comes as a surprise to the capital market. The Deutsche Mittelstandsanleihen Fonds (DMAF), which currently has a volume of around 150 million euros, is being dissolved. This decision was made by the fund management company IP Concept, a subsidiary of DZ Privatbank in Luxembourg. In the liquidation, the fund’s investments in bonds of medium-sized companies are to be sold. Investors must expect financial losses when selling fund shares as part of a liquidation. Therefore, investors should use their legal options to avoid losses as much as possible, according to the law firm MTR Legal Rechtsanwälte, which specializes in capital market law.
The Deutsche Mittelstandsanleihen Fonds was initiated by KFM Deutsche Mittelstand AG (WKN A1W5T2). The fund company primarily invested in high-yield bonds of medium-sized companies. The fund regularly paid out distributions to investors. Thus, the liquidation of the fund is all the more surprising. According to their own statements, neither KFM Deutsche Mittelstand AG nor the fund management was informed about this step by IP Concept beforehand.
However, it became apparent at the beginning of the year that the fund was in trouble. In mid-January, the issue and redemption of shares were suspended, primarily due to problems with the Verius bond, in which the Deutsche Mittelstandsanleihen Fonds had invested nearly four percent of its assets. The Handelsblatt reported on June 15, 2023, that the DMAF had also invested investors’ money in other bonds that failed and incurred losses. The exact reasons for the fund’s liquidation are currently unknown. IP Concept has informed investors that the dissolution is being carried out to safeguard investors’ interests, as reported by Handelsblatt.
The primary interest of investors now is likely to be to come out of the situation as unscathed as possible. To this end, compensation claims in all directions can be examined.
At MTR Legal Rechtsanwälte, experienced lawyers in capital market law advise investors on their legal options.
