Threadneedle: Property Fund Close is Best for Investors

As Threadneedle becomes the sixth fund to close their property fund due to Brexit concerns, the firm's head of multi-asset admits he has reduced exposure to the asset class

Emma Wall 7 July, 2016 | 1:49PM
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Six property funds have now suspended trading - with Henderson, Canada Life and Columbia Threadneedle, joining M&G, Aviva and Standard Life. 

This is more than half of the £25 billion Investment Association property sector; and Aberdeen has said it is posting exit restrictions on its fund until Monday.

Laith Khalaf, Senior Analyst, Hargreaves Lansdown; said that the property fund sector is now "on ice", and will remain so until managers raise enough cash to meet redemptions. "These funds are therefore likely to be closed for weeks and months rather than simply a matter of days," he warned. "Clearly there has been a knee-jerk reaction to Brexit in the commercial property sector, which may moderate over time."

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Emma Wall  is former Senior International Editor for Morningstar

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