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The principle of an open-ended real estate funds
Tax advantagesA stabilizing factor for your securities account
Market Analysis

Knowing how much net investment income you will receive after taxes is important to every investor. Investing in conventional savings products or bond funds usually comes with a high tax burden because any interest income exceeding the savings allowance must be fully taxed.

Another option is investing your money in one of our open-ended real estate funds. Only a small portion of their investment performance is taxable. Income from foreign real estate, capital gains on disposals abroad, and depreciation of buildings remain tax-free even under the Abgeltungsteuer (German flat tax) if the double taxation agreement with the country in which the property in question is located provides for such a tax exemption.

This is one reason why our open-ended real estate funds’ income in recent years has been 100% tax-free for private investors. Although we will continue to pursue our tax-optimized investment strategy, the tax-free portion may fluctuate in future.

The bottom line is crucial

The Abgeltungsteuer (German flat tax) affects equity investments more than investments in open-ended real estate funds. This can be seen from our comparative calculation, using KanAm grundinvest Fonds as an example. Until now, shares have already had to generate a significantly higher gross return than our open-ended real estate funds to end up with the same net return. Now, with the advent of the Abgeltungsteuer (German flat tax), the gap has even widened, because KanAm grundinvest Fonds continues to profit from substantial tax advantages.

_{The graphic below starts off by showing the amount that would have resulted from a one-off investment of EUR 100,000 in KanAm grundinvest Fonds on January 2, 2007 that was sold on June 30, 2008. By way of a comparison, we performed the same calculation for a fully-taxable investment with the same performance. In order to show the effects of the Abgeltungsteuer (German flat tax), we have made another calculation with exactly the same data assuming, however, that the Abgeltungsteuer (German flat tax) already applied. The lower figure for KanAm grundinvest Fonds compared to the previous legal position is due to the fact that, thanks to the abolition of the speculative period, portions of the disposal gain at investor level are now subject to the Abgeltungsteuer (German flat tax) when new units are purchased.}

* Note:
Tax treatment depends on the investor’s personal circumstances and may change in the future. The information concerning taxation is based on the legal position as it is known to stand at present. However, no assurance can be given that the tax treatment will not change as a result of legislation, court rulings, or decrees issued by the tax authorities. Details of the taxation of the investment fund's income will be published in the annual reports.

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