Leader: Groundhog Day for open-ended property funds

Few lessons have been learned

Professional investors could be forgiven for feeling a sense of déjà vu when it comes to the recent raft of open-ended property fund suspensions following the EU referendum.

Even though moves taken by providers in recent weeks have grabbed the headlines, in 2007/2008 groups were forced to take even more drastic measures. For example, M&G imposed a three-month notice period on institutional withdrawals from its offshore property fund; Schroders marked down the value of assets in its property funds by 12.5%; and Friends Provident introduced a six-month redemption period on its £1.2bn life property funds. However, perhaps more worrying considering the present situation, industry commentators were calling back then for further investigation into the structure of...