Property Funds Update

Since the Brexit vote, several fund managers have suspended dealing within their Property funds – most notably M&G, Aviva and Threadneedle – after seeing a large increase in the number of people requesting to withdraw money; many of you will have received letters in this regard.

This can sometimes happen in times of market uncertainty as the fund managers cannot sell the properties they hold quickly enough to meet the withdrawal requests.

We would stress that, although this means funds cannot be bought or sold at present, this will have little impact on our client portfolios. Income payments will continue unaffected and we have always recommended Property holdings as part of a diverse portfolio. This was a reaction to Brexit which many expected and we would recommend a ‘sit tight’ approach as the economic landscape continues to adapt to the new surroundings we find ourselves in.

For further insight, please read the updates below from Morningstar and M&G:

Morningstar update on Property

M&G comments on Property fund suspension

You may also wish to view the below video from Morningstar which examines the role of property within a diverse portfolio:

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