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Bank of England set to stem the tide on gated property funds


The Bank of England is considering new measures to halt the spate of property fund closures in the wake of the Brexit vote.

The Telegraph reports the Bank and the FCA are looking at a number of ways to shore up the property sector following the trading suspensions by the likes of Standard Life Investments, Henderson and Aviva Investors.

These include limiting liquidity to match the assets, for example by requiring investors to give a notice period of between 30 days to six months in order to redeem.

Property funds may also have to increase their liquidity buffers by holding more property-related shares and bonds, which can be more easily sold off than offices or retail parks.

Another option for the central bank is swing pricing, where investors who sell large holdings have to accept a lower price. This is said to be something the US Securities and Exchange Commission has also looked at.

FCA chief executive Andrew Bailey says: “Suspension is designed into these structures, it’s not a panic measure, it’s designed to deal precisely with that situation, where there’s been some shock to the market.

“It does point to issues that we will need to look at in the design of these things from the point of view of conduct and systemic stability.”


Henderson and Columbia suspend dealing on property funds

Henderson Global Investors and Columbia Threadneedle Investments have suspended dealing in their property funds following the Brexit vote. Henderson has suspended dealing in its £3.9bn property fund, following three other major providers. The asset manager has suspended dealing on the Henderson UK Property PAIF and the feeder fund “to safeguard the interests of all investors”. A […]


Property fund giants under pressure as Brexit hits sector

The £4.4bn M&G Property Portfolio fund has become the latest property fund to suspend trading as the Brexit vote is brought to bear on valuations for UK commercial property. M&G follows the halt in trading in the £2.7bn Standard Life Investments UK Real Estate fund and the £1.9bn Aviva Investors Property Trust. The announcements come […]


LendInvest secures £40m funding line

Macquarie has given LendInvest a £40m funding line to grow in the short-term mortgage market. LendInvest says the Macquarie facility is its fourth bank funding line and brings its total investments to more than £230m. LendInvest chief executive Christian Faes says: “LendInvest is creating the most diverse capital base of any mortgage lender in the […]

Five ways to invest in the connected world

Smart utility metering; fitness trackers; connected cars; smart factories; precision agriculture: the internet of things encompasses myriad applications. But how do you gain exposure – and profit – from this growing trend, asks Neptune fund manager & CTO Ali Unwin. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating […]

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]


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