Should investors be worried about liquidity within property funds?

Property managers share their views

Wealth manager delegates at our Property Breakfast Briefing questioned speakers on a number of issues affecting the sector, including how they are managing liquidity, difficulties valuing UK portfolios in the post-Brexit environment, and longer-term global prospects for the asset class.

Managers noted fund suspensions and fair value adjustments are an unusual occurrence within the sector, while investors need to understand that in times of stress, "cash on demand" is not on offer from many property funds. However, they said the investment case for the asset class has remained strong throughout 2016, despite the EU referendum vote in June. Although forecasts for both capital and rental growth were downgraded at the start of the year, many managers positioned their portfolios for a changing market by increasing cash levels, investing outside of crowded markets (such as...