View more on these topics

Real estate trade body to launch property funds review

house key keys keyring home propertyThe Association of Real Estate Funds has commissioned a report to assess the the cause and impacts from property fund suspensions following the UK’s vote to leave the European Union.

The trade body has asked independent consultant John Forbes to release a study looking into the impacts of the property funds suspensions on clients, the market chain around the sector, such as fund distributors, managers, and valuers.

The study, which will be published in the first quarter of 2017, will also identify and evaluate areas of “best practice” from market players.

Over £18bn assets in commercial property funds were put on hold in the weeks following the EU referendum because of fears over falling property values in the wake of the Brexit vote.

Managers including M&G, Standard Life Investments, Columbia Threadneedle, Henderson, Aberdeen Asset Management and Aviva Investors put temporary “gates” on their property funds.

AREF chief executive John Cartwright says: “To ensure that our industry continues to provide comprehensive investor protection and deliver the best possible outcomes for its clients, we thought it was an appropriate time to look back at how the market reacted to the result and see where, if any, improvements to fund structures and processes could be made.”

John Forbes, who will be conducting the research, says: “It is vital that the investment models available to retail and institutional clients provide protection to all investors at moments of market stress and illiquidity.”


Location, location

Where you are based determines the success and type of business you write. Or does it, asks Gregor Watt


Why invest in alternatives?

Michael Howard, Head of Alternative Investments at Prudential Portfolio Management Group (PPMG), analyses how alternative assets can benefit multi-asset portfolios. As yields have compressed and forward-looking return expectations have fallen in the past few years, investors have sought alternatives to traditional asset classes to supplement their income and boost their total return. Please remember that […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment