Property suspensions create model portfolio admin headache for wealth managers

Problems for platforms

The suspension of a number of widely-held open-ended property funds has created challenges for platforms and wealth managers, especially those holding the vehicles within model portfolios.

A number of giant funds in the sector run by Standard Life Investments, Henderson, M&G, Columbia Threadneedle, Aviva Investors and Canada Life have all been suspended as they struggle to cope with the high volume of outflows following the Brexit vote on 23 June. This has caused problems for wealth managers if they hold any of the suspended funds in their model portfolios, as they are now unable to trade the strategies and return money to investors if they choose to exit. The only option for new money allocated to the property funds is to hold it in cash until the suspension is lifted. ...