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ARTICLE · 10 DECEMBER 2019

Property Funds Closing The Exit Doors

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The open ended real estate funds market faced its latest challenge this week following the suspension by M&G of its property fund

United KingdomFinance and Banking

The open ended real estate funds market faced its latest challenge this week following the suspension by M&G of its property fund.

We have been here before, most recently in the aftermath of the 2016 Brexit vote, but it feels different this time. Open ended funds and their investors have faced a tough time over the few months, with the Woodford Equity Income Fund closing. However the circumstances of the latest setback seem different.

The uncertainty for the commercial real estate market created by Brexit and the woes of the retail sector in particular were cited as factors behind the decision to suspend redemptions. Yet while these are both well documented, research and commentators both indicate that UK real estate should be fundamentally sound in the long term.

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