Aegon's challenge as a forced seller: Industry reacts to property fund closure

Closure will accelerate return of cash

Aegon, like Aviva, will have to face the market as a “forced seller”, which will make it difficult to sell its underlying properties, experts have warned following the news of the asset manager will close its property funds.

"As we have seen with the Woodford fund closure, getting the balance right between time and price is extremely difficult and sensitive and therefore the clear communication of this is key," explained Ryan Hughes, head of active portfolios at AJ Bell. However, the "silver lining" for investors in the Aegon Property Income and Property Income Feeder funds is "the closure accelerates the return of some cash," according to Oli Creasey, property research analyst at Quilter Cheviot. Aegon Property Income set for closure after 13-month suspension The Aegon Property Income fund had reached...