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Frozen funds raise concern

Friday 8th of July 2016

Six UK property funds have now been frozen – meaning half of Britain’s £25 billion property fund sector is at a standstill.

The open-ended real estate funds involved, including Aviva, M&G Investments and Standard Life, are not as liquid as listed property options. 

It can take significant amounts of time to sell properties to meet withdrawal requirements.

While open-ended funds tend to hold a stock of cash to help, in a worst-case scenario they could be forced to sell their properties in a falling market to keep up with investor demand.

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