Why investors need to stay invested in property - despite fund suspensions

clock • 2 min read

The closure of many open-ended property funds for only the second time in their history (we think) is a classic case of irrational investor decision-making, writes Guy Stephens, managing director of Rowan Dartington Signature.

We track liquidity closely as part of our risk grading process. This means we tend to favour more conventional, mainstream investments over the more esoteric and specialist ones as the latter are often relatively illiquid and especially so at times of market panic. If a supposedly equivalent risk investment has the potential to be illiquid when there is a stampede for the exit, then does it really have equivalent risk? We would argue absolutely not. M&G: Credit facility 'one option' to fund redemptions on suspended property portfolio We have two bricks and mortar open-ended propert...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Specialist

While thematic funds offer diversification and a specialist knowledge base, investors must also consider the sensitivity to real bond yields inherent in these funds.

Deep Dive: Thematics offer diversification but investors must consider bond sensitivity

‘Dedicated specialists’

James Baxter-Derrington
clock 06 April 2023 • 4 min read
Deal volumes fell last year as rising interest rates brought the end of cheap money

European private equity yet to spend €270bn worth of capital

Deployment of capital expected

Kathleen Gallagher
clock 04 January 2023 • 1 min read
Ali H. Munawar, CEO of Pledge Therapeutics

Early-stage biopharma: An opportunity for strategic investment

Disproportionately smaller investment

Ali H. Munawar
clock 10 August 2022 • 4 min read
Trustpilot