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Henderson and Columbia suspend dealing on property funds

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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 statement from the manager says: “Despite a strong underlying portfolio, the decision was taken due to exceptional liquidity pressures on the funds, as a result of uncertainty following the EU Referendum and the recent suspension of other direct property funds.”

At the end of May the fund had 14.3 per cent in cash, but fears about valuations on UK property have led to liquidity running out on a number of funds.

The asset manager adds that the Henderson Horizon range of property securities funds are not affected.

Columbia Threadneedle Investments has temporarily suspended trading in its UK property fund amid client redemptions.

The asset manager suspended dealing on the £1.4bn Threadneedle UK Property Authorised Investment Fund and its feeder fund from today.

Columbia Threadneedle says it has “not been immune” to the retail outflows in the sector, with it meeting requests for redemptions from its cash balance.

“However, it is expected that these requests to sell will continue for the time being due to uncertainty in the market following the UK Referendum result, therefore the temporary suspension of dealings allows sufficient time for the orderly sale of assets, and protects the interests of all investors,” says a statement from the firm.

The asset manager adds that property should be “part of a balanced portfolio for a long-term investor”.

The firm adds that it went into the EU referendum with a “high level of liquidity” in the funds.

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