Funds Plausibility
Analysis of funds concepts
Investors in Germany had invested more than 15 billion Euro in closed-end funds by the end of 2008. These products are company participations that offer high returns, but can also be very risky. Since investors usually commit their capital for a long term when investing in closed-end funds, the trustworthiness of the offerer and the soundness of the product concept are therefore especially important. However, to test an offer investors often have to read and comprehend sales brochures consisting of more than 100 pages.
TÜV NORD CERT supports investors and offerers by verifying and certifying these sales brochures for their plausibility, thereby establishing information asymmetries between the investors and the offerers. The analysis focuses on the question as to whether the funds concept can be successful also with regard to management quality and company operations. However, the prognosis regarding economic profitability cannot be verified in this context.
We concentrate on the comprehensibility, clarity and honesty of the sales brochure. The analysis assesses a total of 15 test criteria. They all have to be conclusive, transparent, and match up with each other.
Certification proceeds as follows:
- Ascertainment of all relevant data and facts
- Analysis and evaluation of the information
- Valuation of all test fields
- Drawing up a test report
- Issuing the certificate
- Regular monitoring
The issued certificate assures the investor that the funds concept has been analysed by an independent institute and was found to be plausible.
Are you interested in the certification of your offered funds? If so, then please contact us.
