Aviva Investors' Munro: Wealth managers to blame for post-Brexit vote property fund saga

Professional investors caused trading suspensions

Wealth managers looking to take advantage of widening discounts in REITs are to blame for the trading suspensions of open-ended UK commercial property funds that took place following the UK's vote to leave the EU last year, according to Aviva Investors' Euan Munro.

Munro, who is chief executive of the firm that runs the £1.4bn Aviva Investors Property Trust, said professional advisors were looking to profit from an arbitrage trade that opened between open-ended funds and their listed property company counterparts, according to the FT. Aviva Investors suspended trading in its property fund in July last year, and was one of many to prevent investors from making redemptions for several months following the vote, including M&G, Columbia Threadneedle, Henderson and Standard Life Investments. The groups saw a wave of clients trying to exit the asset c...