Closed-ended property trusts may not have been as badly impacted by the Brexit vote as their open-ended counterparts, which suffered £792m of redemptions in July, but the summer has still been a volatile period for the sector.
Update: Columbia Threadneedle to lift suspension on £1.3bn UK PAIF Funds in the closed-ended UK Direct Property sector saw discounts widen to an average of 14%, and some large funds were trading on discounts in excess of 20% - despite the structure of the funds limiting outflows (see chart, below). Since then, property trust discounts have narrowed, with the sector average currently about 6%. Trust analysts say the sector is still an attractive proposition for yield-hungry investors, but prospects are still uncertain and dependent on the strength of the UK economy following the Bre...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes