Managers turn to REITs amid liquidity fears

The aftermath of the global credit crisis has seen property as an asset class struggle in the face of liquidity issues.

As concerns continue to dominate direct property investments today, global property managers are looking to property securities to counterbalance the liquidity issues of bricks and mortar, as well as improve diversification. A portfolio including property stocks and REITs boosts investor confidence because managers can cash in their holdings when they need to, said Stuart Martin, co-manager of the First State Global Property Securities fund. The £33m First State fund ranks third over the three years to 24 January and is up 23.3% against 6.2% average fall in the IMA Property sector, ac...