Threadneedle: Property Funds are Prepared for Crisis

A year after the temporary trading suspension of six UK open-ended commercial property funds, one fund manager says the FCA findings are wrong - fund liquidity is not an issue

Karen Kwok 28 July, 2017 | 12:11PM

Twelve month ago, six UK open-ended commercial property funds suspended trading in the immediate aftermath of the EU Referendum. In a bid to discourage mass outflows, funds including Henderson UK PropertyM&G UK Property PortfolioStandard Life UK Real Estate and Aviva Investors Property Trust also swung their prices down from offer to bid or mid pricing, thereby lowering the prices of the funds by around 5%-6.25%.

Threadneedle's Jordison disagreed with the FCA’s findings

The near-term cause of all this was the uncertainty caused by the outcome of the Brexit referendum, as there were fears that companies are going to leave London as a result of Brexit.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Janus Henderson UK Pty PAIF A Acc231.89 GBP0.02
M&G Property Portfolio GBP A Acc124.65 GBP0.03
SLI UK Real Estate Institutional Acc114.10 GBP0.00
Threadneedle Property282.51 GBP0.00

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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