The suspension of a number of widely-held open-ended property funds has created challenges for platforms and wealth managers, especially those holding the vehicles within model portfolios.
A number of giant funds in the sector run by Standard Life Investments, Henderson, M&G, Columbia Threadneedle, Aviva Investors and Canada Life have all been suspended as they struggle to cope with the high volume of outflows following the Brexit vote on 23 June. This has caused problems for wealth managers if they hold any of the suspended funds in their model portfolios, as they are now unable to trade the strategies and return money to investors if they choose to exit. The only option for new money allocated to the property funds is to hold it in cash until the suspension is lifted. ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
