Experienced Investor
Property funds sitting on cash as FCA investigates sector
Last year following the Brexit vote a number of property funds had to block investors from withdrawing cash, as uncertainty gripped the market. Funds were slammed for promising investors liquidity terms which were unrealistic given they were investing in property.
The Financial Conduct Authority (FCA) is now investigating the sector to identify measures which could prevent similar situations to those seen last summer.
According to the Financial Times, five of the biggest funds are now holding at least a fifth of their assets in cash, with concerns that the fallout from the snap election and the ongoing Brexit situation could lead to another wave of investors looking to withdraw their money.
Speaking to the paper, Andrew Hook, portfolio manager of the Aviva Investors Property Trust – which holds assets of around £1.6bn – said: “We have deliberately held a higher cash weighting since the resumption of dealing last December. This is not out of line with the vast majority of our peer group funds.”
Other funds with more than 20% held in cash include Columbia Threadneedle’s UK Property fund, the CanLife UK Property fund and L&G’s UK Property fund. Typically funds keep around 10% of their assets in cash, though the Kames Property Income fund has a massive 33% in cash.
Related Posts
- Watchdog warns of action against life insurance firms over poor customer service
- Watchdog’s Farage-inspired ‘de-banking’ review reveals a million adults have no current account
- Direct Line to refund £30m to overcharged insurance customers
- Financial watchdog analyses nine banks to ensure savers receive ‘fair value’
There are 0 Comment(s)
Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?
Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...
Is now the time to fix your energy deal?
Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...
Everything you need to know about the pension triple lock
Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...
What will happen if rates change
How your finances will be impacted by a rise in interest rates.
Regular Savings Calculator
Small regular contributions can build up nicely over time.
Online Savings Calculator
Work out how your online savings can build over time.
The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts
A number of banks are luring in new student customers with cold hard cash this year – while others are compe...
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Money Tips of the Week
© AE3 Media Ltd, 21 Great Winchester Street, London EC2N 2JA, Company.