IA praises groups for suspending property fund trading

Protecting investors

The Investment Association has issued a briefing note in the wake of a series of property funds suspending trading this week, saying the move is the "most important tool" to protect investors.

The association said the asset management industry clearly recognises and explains the fact that open-ended funds carry a liquidity risk for unitholders and the suspensions show the regulations are "working as they are supposed to". So far this week, Standard Life Investments, M&G, Aviva Investors, Henderson, Columbia Threadneedle, Canada Life Investments and Aberdeen have suspending trading on their open-ended UK property funds, amid a post-Brexit rush to exit the asset class. Investors have been slowly reducing their allocations to the sector in the lead-up to the referendum, but si...