Until a few years ago, so-called shipping funds enjoyed immense popularity. Increasingly more private investors have entered this segment, which is not surprising considering the past returns. With a comparatively low risk, good returns could be achieved.
Many private investors regret having invested in ship investments
But now the situation is completely different. Many private investors regret having invested in ship investments. This is due to the immense losses that some funds have incurred. Ever since the onset of the global economic crisis, commercial shipping has had a particularly icy wind. Due to the decline in orders, the shipping companies had to lower their prices.
Nowadays, considerably more goods are shipped by ship again. But the prices have remained low. On the one hand, the shipping companies could not simply raise prices again, on the other hand, more and more ships are being manufactured – especially in Asia, new container ships are launched almost daily.
Several shipping funds have already stumbled
Due to this development, several shipping funds have already stumbled. Many investors are now afraid. In fact, ship investments do not bear their name in vain: investors buy units of closed-end funds, often with the status of entrepreneurs. Due to poorly performing business, some funds must now raise funds, which ultimately means investors to have to money.
Only through the gray market transactions can be made
Shipping funds can therefore only be advised to be cautious. This also applies to fund units that are offered cheaply on the gray market. Because unlike open funds, it is not easy to sell the shares through the market. Only through the gray market transactions can be made. Many investors take this opportunity and seem ready to exit with a loss rather than accumulate a bigger loss. Whether the purchase of appropriate shares is worth, is questionable. Such speculations can but do not necessarily work.