Open-ended property funds could be set to halt withdrawals by imposing redemption gates in response to fears that property values may be hit by Brexit.
Liquidity across the fund sector is not currently strong enough to prevent managers putting in place withdrawal restrictions should investors fear a steep market decline due to Brexit developments, according to Fitch Ratings. Property funds saw waves of redemptions in the wake of the 2016 vote to leave the European Union. Fitch said while cash levels are "marginally better" than in mid-2016, there is currently potential for the market reaction to Brexit to be "more severe than the reaction to the referendum result", particularly if the outcome is 'no deal'. Earlier in February it e...
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