Keep an Eye on UK Fund Withdrawal Freezes

by Marilou Long on July 5, 2016

in Brexit,Commercial Real Estate,Foreign Markets

A large UK property fund, Standard Life, closed off fund withdrawals citing “exceptional market circumstances”.  From the linked article:

In a statement, Standard Life said the decision followed an increase in redemption requests from investors. “The suspension was requested to protect the interests of all investors in the fund and to avoid compromising investment returns from the range, mix and quality of assets within the portfolio,” the company said.

“The selling process for real estate can be lengthy as the fund manager needs to offer assets for sale, find prospective buyers, secure the best price and complete the legal transaction. Unless this selling process is controlled, there is a risk that the fund manager will not achieve the best deal for investors in the fund, including those who intend to remain invested over the medium to long term.”

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