The Association of Real Estate Funds has commissioned a report to assess the the cause and impacts from property fund suspensions following the UK’s vote to leave the European Union.
The trade body has asked independent consultant John Forbes to release a study looking into the impacts of the property funds suspensions on clients, the market chain around the sector, such as fund distributors, managers, and valuers.
The study, which will be published in the first quarter of 2017, will also identify and evaluate areas of “best practice” from market players.
Over £18bn assets in commercial property funds were put on hold in the weeks following the EU referendum because of fears over falling property values in the wake of the Brexit vote.
Managers including M&G, Standard Life Investments, Columbia Threadneedle, Henderson, Aberdeen Asset Management and Aviva Investors put temporary “gates” on their property funds.
AREF chief executive John Cartwright says: “To ensure that our industry continues to provide comprehensive investor protection and deliver the best possible outcomes for its clients, we thought it was an appropriate time to look back at how the market reacted to the result and see where, if any, improvements to fund structures and processes could be made.”
John Forbes, who will be conducting the research, says: “It is vital that the investment models available to retail and institutional clients provide protection to all investors at moments of market stress and illiquidity.”