Brandeaux suspends funds on fresh ‘rocks on the runway’

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Brandeaux has suspended its entire fund range after citing higher redemption requests and problems with property market liquidity.

The asset manager, which specialises in student accommodation, residential ground rents and reversionary properties, says it is aiming to protect investors’ interests in light of a recent increase in redemptions.

The firm manages the £1bn Brandeaux Student Accommodation fund, with sterling and multi-currency share classes. It also runs the Ground Rent Income, Ground Rent Portfolio and Ground Rent Portfolio Plus funds and the Brandeaux Dual Asset fund, which has sterling, dollar and euro share classes.

Brandeaux suspended its funds in 2000 after heavy subscriptions meant it could not find sufficient investment opportunities. It then suspended the range in 2008 on the back of higher redemptions and insufficient liquidity.

A letter to investors from chief executive Roger Boyland and chairman Kay Brandeaux says: “Brandeaux has encountered its share of ‘rocks on the runway’, some more formidable than others.

“Today we are again in a position where there is uncertainty in the market combined with liquidity pressure from investors wishing to redeem their investment. Therefore, we have taken the difficult decision to suspend all Brandeaux funds.”

The company adds that the funds are “all performing positively” and are invested in hard assets in high-quality UK property.

“There is no basis for investors to ‘panic’ or to worry that they have ‘lost all their money’. All Brandeaux funds remain completely solvent and can meet all of their operational cash needs,” Boyland and Brandeaux say.

Brandeaux says it will update investors at the end of July. An earlier update could be made “if there is anything of significance to report”.