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Brandeaux suspends fund range due to property market liquidity


Brandeaux has suspended its entire fund range after citing higher redemption requests and problems with property market liquidity.

The asset manager, which specialises in student accommodation, residential ground rents and reversionary properties, says it is aiming to protect investors’ interests in light of a recent increase in redemptions.

The firm manages the £1bn Brandeaux Student Accommodation fund, with sterling and multi-currency share classes. It also runs the Ground Rent Income, Ground Rent Portfolio and Ground Rent Portfolio Plus funds and the Brandeaux Dual Asset fund, which has sterling, dollar and euro share classes.

Brandeaux suspended its funds in 2000 after heavy subscriptions meant it could not find sufficient investment opportunities. It then suspended the range in 2008 on the back of higher redemptions and insufficient liquidity.

A letter to investors from chief executive Roger Boyland and chairman Kay Brandeaux says: “Brandeaux has encountered its share of ‘rocks on the runway’, some more formidable than others.

“Today we are again in a position where there is uncertainty in the market combined with liquidity pressure from investors wishing to redeem their investment. Therefore, we have taken the difficult decision to suspend all Brandeaux funds.”

The company adds that the funds are “all performing positively” and are invested in hard assets in high-quality UK property.

“There is no basis for investors to ‘panic’ or to worry that they have ‘lost all their money’. All Brandeaux funds remain completely solvent and can meet all of their operational cash needs,” Boyland and Brandeaux say.

Brandeaux says it will update investors at the end of July. An earlier update could be made “if there is anything of significance to report”.


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. Its a shame you didn’t include the key quote from Brandeaux’s communication: “One example of these challenges continues to be the impact of PRA and FCA regulatory initiatives aimed at discouraging IFAs from marketing non PRA and FCA regulated funds.”

    Any open-ended fund investing in illiquid asset is reliant on inflows to provide for outflows in the shorter term. The Regulator’s blanket “Eek its a UCIS” approach is causing problems for investors in many an unregulated fun: now that these have been suspended, without any prospect of large inflows any time soon, this will become self-perpetuating.

    The FCA seem to have approached this matter with a view to sinking the funds, as opposed to ensuring they are refinanced and retail investors can exit without panic.

  2. Total lack of foresight 2nd July 2013 at 10:07 am

    @Man in Black
    Spot on. And for a regulator to not have taken such consequences into account, with the obvious consumer detriment, makes you doubt the wisdom of the people involved in making their decisions – I wonder, do the actual PEOPLE who decide things ever get challenged re the consequences?..should we in fact assume that if something comes out of the FSA, then the whole Board and management were in agreement, or else surely someone with a little but of far sightedness would have spoken up? Mind you, there are still so many foreseeable consequences to come that this one may seem trivial in a year or two.

  3. @Total lack of foresight

    The irony in your post is delightful.

    For advisers to have ignored the FSA’s warnings about UCIS since 2008 is staggering and makes you doubt the wisdom of those continuing to be involved and being surprised when this happens. I wonder, do the ADVISERS who continue to invest their client’s money in these things ever question themselves about the consequences? Should we assume that if the FSA say they are not happy about something, carry out thematic reviews, fine firms and make clear statements about the inappropriate use of UCIS are bluffing? Or could advisers have sat up and taken notice about what was going on these last four years? Mind you, there are still plenty of advisers ignoring the foreseeable consequences of what is coming out of the FCA and will suffer for it in a year or two.

  4. New money funds redemptions- mmm what’s that sound like?
    A ponzi?
    Invest in high liquidity assets in this day and age- mark to market – or show them the door

  5. We are investigating possible opportunities arising from this frozen fund to unlock liquidity and would be interested in reviewing any documentation held by investors. In the first instance please contact

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